CapEx vs OpEx Solar: A CFO’s Strategic Framework for Industrial Energy Procurement

With commercial electricity tariffs rising and sustainability certifications becoming non-negotiable for export-oriented businesses in Bangladesh, corporate finance executives face a central strategic choice: should your enterprise deploy balance-sheet capital to own its solar plant directly (CapEx), or procure electricity through a long-term Power Purchase Agreement (OpEx / RESCO)?

The CapEx Model: Maximum Internal Rate of Return (IRR)

Under direct asset ownership (CapEx), the factory funds 100% of engineering, procurement, and construction. In Bangladesh, industrial solar projects currently benchmark between BDT 60,000 and 75,000 per kWp, yielding project IRRs between 20% and 28%. Because daytime industrial electricity tariffs range from BDT 12.00 to 14.50 per kWh, capital payback is typically achieved in 3.5 to 5.0 years.

• Complete equity ownership: 100% of generated energy offsets the retail utility bill directly.
• Subsidized debt refinancing: Eligible enterprises can access concessionary low-interest refinancing covering up to 80% of project costs through IDCOL or Bangladesh Bank green funds.
• Corporate tax benefits: Accelerated first-year tax depreciation shields corporate operating margins.

The OpEx / RESCO Model: Zero Upfront Balance-Sheet Exposure

For capital-constrained operations or companies prioritizing core manufacturing line expansions, the OpEx (RESCO) model offers immediate operating cash flow savings from Day 1 without capital expenditure. An independent clean-energy developer funds, installs, insures, and maintains the rooftop array under a 15-to-20-year bilateral PPA.

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The facility host simply purchases the solar electricity generated at a pre-agreed tariff discounted 15% to 30% below standard utility rates. At the conclusion of the contract term, ownership of the functioning solar plant transfers to the host facility for a nominal fee.