Question 1

What is PPA? How is it different from EPC?

Accepted Answer

PPA (Power Purchase Agreement) is a model where the solar provider installs panels on your roof for free. You simply pay for electricity at a discounted rate (10-30% cheaper than grid price). EPC means you invest in and own the system — greater long-term savings but requires upfront investment.

Question 2

What kind of businesses is PPA suitable for?

Accepted Answer

PPA is ideal for businesses wanting immediate savings without investment — such as factories with high electricity costs but limited capital, rented buildings where long-term occupancy is uncertain, or businesses preferring to preserve cash for core operations. PPA contracts typically run 15-25 years.

Question 3

How long is the payback period for self-investment (EPC)?

Accepted Answer

Self-investment (EPC) typically pays back within 4-7 years, depending on system size, current electricity rates, and local sunlight levels. After payback, all savings become pure profit. With a 25+ year system lifespan, EPC delivers high long-term returns.

Question 4

Does the PPA rate increase every year?

Accepted Answer

PPA rates may increase slightly per the contract (approximately 1-2% per year), but they remain lower than grid electricity rates which increase by 3-5% per year on average. This means the savings gap actually grows wider each year. CapSolar offers transparent contracts with clearly defined escalation rates.

PPA or Self-Investment Which Is Better for You?

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Frequently Asked Questions

What is PPA? How is it different from EPC?

What kind of businesses is PPA suitable for?

How long is the payback period for self-investment (EPC)?

Does the PPA rate increase every year?

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