Greenery EPC
Preparing engineering data...
Preparing engineering data...
SOLAR FINANCING · MODEL COMPARISON
Compare direct ownership with a solar power purchase agreement to find the model that best fits your business, capital strategy, and energy needs.
Direct Ownership (CapEx) vs Third-Party PPA (OpEx) for Bangladesh Industrial Facilities
Compare essential commercial, operational, and financial dimensions to align solar procurement with your corporate strategy.
| Evaluation Dimension | CapEx (Direct Turnkey Ownership) | OpEx (PPA / RESCO Model) |
|---|---|---|
| Upfront Capital Outlay | Full capital investment requiredCapital Intensive BDT 60,000 to BDT 75,000 per kWp installed. Client provides 100% equity or leverages concessionary debt (e.g. 20% equity / 80% loan via IDCOL or partner banks). | BDT 0 (Zero capital expenditure)Zero Investment The developer/RESCO entity finances 100% of equipment procurement, engineering, installation, and utility interconnection. Client incurs no capital expense. |
| Asset Ownership & Control | 100% Client Ownership from Day 1Full Ownership The factory owns all solar PV modules, inverters, switchgear, and structural mounting. Full sovereignty over plant dispatch, upgrades, and modifications. | Developer-Owned for 15–20 YearsLeased / PPA Asset The developer retains physical title and asset ownership during the PPA term. Complete ownership transfers to the client at the end of the term for nominal cost (BDT 1). |
| Electricity Cost & Financial Yield | LCOE BDT 3.50 – 4.50 / kWh (Max ROI)Maximum Savings Levelized Cost of Electricity over 25 years is extremely low. Delivers project IRRs of 20% to 28% and preserves 100% of gross electricity bill reductions. | Tariff BDT 8.50 – 10.50 / kWh (Guaranteed Arbitrage)Immediate Discount Purchases clean electricity at a fixed or indexed discount tariff 15% to 30% below prevailing utility industrial tariffs. Predictable operational savings without capital risk. |
| Operating, Maintenance & Hardware Risk | Client responsibility after EPC warrantyClient Managed 2-year turnkey workmanship warranty and long-term hardware warranties included. After Year 2, ongoing preventative cleaning and electrical O&M is managed by client or contracted to Greenery EPC. | 100% Developer Responsibility for 15–20 YearsZero Client Risk Developer covers all scheduled module washing, inverter replacements, insurance, SCADA monitoring, and downtime risks. Developer revenue depends on maximizing generation. |
| Financial Payback & Cash Flow Timeline | Payback in 3.5 to 5.0 Years3.5–5.0 Yr Payback Initial negative cash flow during construction, turning strongly positive upon commissioning. Once capital is amortized (3.5–5.0 yrs), power is virtually free for the remaining 20+ years. | Instant Cash Positive from Day 1Instant Positive Cash Flow No payback period required because capital outlay is zero. Monthly utility bills drop immediately upon commercial operation, generating positive cash flow from the first invoice. |
| Balance Sheet & Tax Treatment | Capital Asset with Accelerated DepreciationTax Shield Benefit Booked as a fixed tangible asset on the corporate balance sheet. Qualifies for accelerated tax depreciation under NBR corporate tax rules, creating a substantial annual tax shield. | Off-Balance Sheet Operational ExpenseOff-Balance Sheet Electricity payments are expensed as operational utility costs (OpEx) under IFRS 16 guidelines. Preserves borrowing capacity and debt-to-equity ratios for core manufacturing expansions. |
| Contractual Tenor & Commitment | Short-Term EPC Contract (10–12 Weeks)High Flexibility Standard turnkey EPC agreement ending upon testing and commissioning, followed by a 2-year warranty period. No long-term off-take obligations or financial lock-in. | Long-Term PPA Commitment (15–20 Years)15–20 Yr Agreement Long-term contractual relationship with minimum off-take commitments ('take-or-pay', typically 80%–85% of projected yield) and designated buyout schedules after Years 5–7. |
| Net Metering Credit Beneficiary | 100% Utility Net Metering Credits to FactoryDirect Credit Surplus solar energy exported on weekends and holidays directly offsets the factory's monthly utility bills on a 1-to-1 kWh basis under the 2025 net metering guidelines. | Contractually Structured Credit ReconciliationContractually Shared Exported surplus power generates utility bill credits that are reconciled monthly between the developer and client according to the pre-agreed PPA settlement formula. |
| Mid-Life Equipment Replacement (Year 10–12) | Client Funds or Reserves for Inverter ReplacementSinking Fund Recommended String inverters have an operational lifespan of 10 to 12 years. Client allocates ~1.5% of annual solar savings into a dedicated sinking fund for inverter refresh at Year 10–12. | 100% Covered by Developer Capital ReserveFully Covered The developer contracts to replace all failing or end-of-life inverters at their own expense, ensuring continuous plant uptime without any financial demand on the host factory. |
| Permitting & Implementation Speed | Faster Execution (8 to 12 Weeks)Fast Turnaround Direct engineering and procurement path. Unencumbered by multi-party project finance legal due diligence, enabling rapid mobilization and commissioning within 2 to 3 months. | Moderate Timeline (12 to 18 Weeks)Due Diligence Dependent Requires PPA legal underwriting, developer credit committee approvals, and institutional fund due diligence prior to structural installation and grid tie-in. |
BDT 60,000 to BDT 75,000 per kWp installed. Client provides 100% equity or leverages concessionary debt (e.g. 20% equity / 80% loan via IDCOL or partner banks).
The developer/RESCO entity finances 100% of equipment procurement, engineering, installation, and utility interconnection. Client incurs no capital expense.
The factory owns all solar PV modules, inverters, switchgear, and structural mounting. Full sovereignty over plant dispatch, upgrades, and modifications.
The developer retains physical title and asset ownership during the PPA term. Complete ownership transfers to the client at the end of the term for nominal cost (BDT 1).
Levelized Cost of Electricity over 25 years is extremely low. Delivers project IRRs of 20% to 28% and preserves 100% of gross electricity bill reductions.
Purchases clean electricity at a fixed or indexed discount tariff 15% to 30% below prevailing utility industrial tariffs. Predictable operational savings without capital risk.
2-year turnkey workmanship warranty and long-term hardware warranties included. After Year 2, ongoing preventative cleaning and electrical O&M is managed by client or contracted to Greenery EPC.
Developer covers all scheduled module washing, inverter replacements, insurance, SCADA monitoring, and downtime risks. Developer revenue depends on maximizing generation.
Initial negative cash flow during construction, turning strongly positive upon commissioning. Once capital is amortized (3.5–5.0 yrs), power is virtually free for the remaining 20+ years.
No payback period required because capital outlay is zero. Monthly utility bills drop immediately upon commercial operation, generating positive cash flow from the first invoice.
Booked as a fixed tangible asset on the corporate balance sheet. Qualifies for accelerated tax depreciation under NBR corporate tax rules, creating a substantial annual tax shield.
Electricity payments are expensed as operational utility costs (OpEx) under IFRS 16 guidelines. Preserves borrowing capacity and debt-to-equity ratios for core manufacturing expansions.
Standard turnkey EPC agreement ending upon testing and commissioning, followed by a 2-year warranty period. No long-term off-take obligations or financial lock-in.
Long-term contractual relationship with minimum off-take commitments ('take-or-pay', typically 80%–85% of projected yield) and designated buyout schedules after Years 5–7.
Surplus solar energy exported on weekends and holidays directly offsets the factory's monthly utility bills on a 1-to-1 kWh basis under the 2025 net metering guidelines.
Exported surplus power generates utility bill credits that are reconciled monthly between the developer and client according to the pre-agreed PPA settlement formula.
String inverters have an operational lifespan of 10 to 12 years. Client allocates ~1.5% of annual solar savings into a dedicated sinking fund for inverter refresh at Year 10–12.
The developer contracts to replace all failing or end-of-life inverters at their own expense, ensuring continuous plant uptime without any financial demand on the host factory.
Direct engineering and procurement path. Unencumbered by multi-party project finance legal due diligence, enabling rapid mobilization and commissioning within 2 to 3 months.
Requires PPA legal underwriting, developer credit committee approvals, and institutional fund due diligence prior to structural installation and grid tie-in.
Aligning Solar Procurement with Your Enterprise Financial Architecture
Solar procurement must align directly with your balance sheet priorities, available debt limits, and manufacturing time horizons.
Best for cash-positive enterprises seeking maximum lifetime financial yield
Best for capital-preserving manufacturers prioritizing core industrial expansion
Comparative 25-Year Economic Modeling Based on Real-World Bangladesh Tariffs and Insolation
The simulation below models financial metrics for a representative 1,000 kWp (1 MWp) industrial rooftop facility in Bangladesh. Actual project performance varies based on specific site insolation, roof orientation, grid utility tariff class, and corporate operating hours.
| Financial & Operational Metric | CapEx (Direct Ownership) | OpEx (PPA Model) | Comparative Variance |
|---|---|---|---|
| Upfront Capital Outlay | BDT 65,000,000 | BDT 0 | BDT 65M capital saved under OpEx |
| Year 1 Gross Energy Value | BDT 19,575,000 | BDT 19,575,000 | Identical clean electricity generated |
| Year 1 Electricity Cost / O&M | BDT 650,000 (O&M only) | BDT 14,137,500 (PPA tariff) | CapEx pays only routine maintenance |
| Year 1 Net Bill Savings | BDT 18,925,000 | BDT 5,437,500 | +BDT 13.48M higher savings under CapEx |
| Capital Payback Period | 3.43 Years | Instant (Day 1) | OpEx is cash positive on Day 1 |
| 5-Year Cumulative Net Savings | BDT 96.4 Million | BDT 29.8 Million | +BDT 66.6M higher savings under CapEx |
| 15-Year Cumulative Net Savings | BDT 278.2 Million | BDT 98.4 Million | +BDT 179.8M higher savings under CapEx |
| 25-Year Cumulative Net Savings | BDT 492.5 Million | BDT 210.8 Million | +BDT 281.7M higher savings under CapEx (post-transfer) |
| 25-Year Project Equity IRR | 24.5% | N/A (Infinite on BDT 0 equity) | CapEx provides exceptional tangible IRR |
While CapEx delivers approximately BDT 281 Million in additional cumulative financial savings over 25 years, OpEx delivers over BDT 98 Million in clean energy savings across the first 15 years with zero capital allocation and zero equipment maintenance risk.
Answer these four strategic questions to identify your optimal procurement model
Select the scenario that best describes your industrial facility to determine whether direct asset ownership (CapEx) or a third-party PPA (OpEx) aligns with your financial framework.
Net Metering 2025 & Distributed Solar Ordinance
Both CapEx and OpEx models operate under the established renewable energy framework of Bangladesh, each enjoying specific statutory protections.
Formally codifies both direct ownership (CapEx) and third-party RESCO PPA (OpEx) commercial structures up to 5 MW, guaranteeing streamlined interconnection and developer asset security.
Provides identical grid-interconnection and bi-directional smart metering privileges for both models up to 100% of sanctioned load.
Provides debt financing directly to CapEx industrial buyers (80/20 loan) or to institutional RESCO developers under the OpEx structure, with fixed 5.0%–5.5% interest rates tied to 50%–75% bank guarantees.
SREDA policy standardizing commercial renewable energy generation, rooftop leasing rights, and private sector participation.
Enables scheduled commercial partner banks to offer subsidized interest rates for industrial rooftop solar installations.
Hybrid Structuring, Buyouts & LEED Points
Deep Dive into Specifications
Direct turnkey ownership with 100% asset control, 3.5–5.0 year payback, and 20–28% project IRR.
Zero-investment solar electricity under long-term PPA with 100% developer-funded EPC, insurance, and lifetime O&M.
Share your facility's monthly electricity bill and roof dimensions. Our engineering and financial analysts will deliver a customized side-by-side CapEx vs OpEx model within 48 hours.