What is the difference between CapEx and OpEx models?

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The electricity consumer makes the full investment in a Capex model. The customer contracts with a solar EPC provider, which transfers assets to customers and performs turnkey installation of the complete solar power system. Additionally, EPC performs yearly plant operation and maintenance (O&M). In the OPEX model, the user pays for the energy used, while an investor or project developer (also known as a Renewable Energy Service Company, or RESCO) spends the CAPEX. A long-term power purchase agreement (PPA) for a predetermined duration and tariff is signed by the developer and the consumer.

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