RESCO vs CAPEX Solar in 2026: What SECI's New NHAI Tender Teaches Indian Businesses
29 October 2026 | Wattscore Insights. Should a business spend ₹40 lakh on a solar plant or sign a long-term agreement to purchase solar electricity without funding the entire installation upfront? That decision affects cash flow, electricity savings and business flexibility for years. On 28 October 2026, Solar Energy Corporation of India (SECI) published a Request for Selection for a solar photovoltaic project for the National Highways Authority of India (NHAI), Phase I, under tariff-based competitive bidding. Tender SECI000295 illustrates structured solar procurement, not a newly announced subsidy or awarded tariff. 1. What SECI's NHAI tender actually says Tender ID: SECI000295. Reference: SECI/C&P/PMC/11/07/2025-26. Published: 28 October 2026. Pre-bid: 12 November 2026. Online bid deadline: 14 December 2026. Offline deadline: 16 December 2026. Bid opening: 17 December 2026. An earlier 10 October SECI notice described Phase I as a RESCO-mode project with minimum capacity of 4 MW. Check subsequent corrigenda before relying on deadlines. 2. RESCO versus CAPEX: understanding the difference CAPEX: own the solar asset Under CAPEX, the consumer finances and typically owns the solar installation. It receives electricity savings while taking responsibility for investment, operation and maintenance directly or through service contractors. RESCO: purchase solar electricity Under a Renewable Energy Service Company arrangement, the developer typically finances, installs and operates the plant. The consumer pays under a long-term power purchase agreement (PPA). Contract terms define ownership, performance, maintenance, pricing and exit arrangements. Comparison: CAPEX generally has higher upfront investment, consumer ownership, greater control and consumer financing exposure. RESCO generally has lower initial capital outlay, developer ownership during the PPA, developer-led maintenance and a long-term contractual commitment. Neither model is universally cheaper. 3. A 100 kW commercial solar comparison Illustrative assumptions, not quotations: 100 kW plant; CAPEX ₹40,00,000; annual generation 1,50,000 kWh; avoided electricity cost ₹8/kWh; RESCO tariff ₹5/kWh; annual CAPEX O&M ₹60,000; module degradation 0.5% annually; financing excluded initially. CAPEX calculation Annual gross electricity savings: 1,50,000 × ₹8 = ₹12,00,000. After ₹60,000 O&M, first-year net operating savings = ₹11,40,000. Illustrative simple payback = ₹40,00,000 / ₹11,40,000 = 3.51 years. This is not a discounted financial return and excludes financing, taxes, inverter replacement and variability. RESCO calculation Annual PPA payment: 1,50,000 × ₹5 = ₹7,50,000. Indicative avoided grid cost: ₹12,00,000. First-year illustrative savings: ₹4,50,000. The calculation assumes every solar unit displaces electricity at ₹8/kWh without additional contractual or regulatory charges. 4. What changes when financing is included? Assume 70% debt on ₹40 lakh CAPEX: loan ₹28 lakh, equity ₹12 lakh, illustrative interest 10% per annum, five-year equal monthly instalments. Approximate EMI is ₹59,500, or ₹7.14 lakh annually. First-year operating savings ₹11.40 lakh minus loan repayments ₹7.14 lakh gives approximately ₹4.26 lakh cash flow after debt service. Financing terms, taxes and real generation can change this result materially. 5. Seven factors that can change the result 1. Daytime consumption: match expected generation with actual hourly load. 2. Electricity tariff: separate avoidable energy charges from fixed, demand and other charges. 3. Generation: account for shading, temperature, soiling and inverter losses. 4. Financing: interest rate and tenure influence CAPEX cash flow. 5. PPA escalation: fixed and escalating rates have different lifetime economics. 6. Exit terms: evaluate relocation, sale of premises and early termination. 7. Equipment performance: model degradation, maintenance and replacements. 6. When should a business prefer CAPEX? CAPEX may be attractive when the business has available investment capital, stable daytime electricity demand, long-term control of the premises, favourable financing and a desire for asset ownership. A project-specific discounted cash-flow comparison remains essential. 7. When should a business consider RESCO? RESCO may be attractive when the business wishes to preserve capital, can secure a credible developer and competitive PPA, has secure roof access and understands performance guarantees, escalation and termination obligations. 8. Twelve questions before signing a solar PPA 1. Who owns the equipment? 2. What is the initial tariff? 3. Is there annual escalation? 4. Is there a minimum purchase obligation? 5. Who bears generation shortfall risk? 6. Who maintains the plant? 7. Who pays for roof repairs? 8. What happens on relocation? 9. Who insures the system? 10. Who bears grid and metering charges? 11. What happens when the PPA ends? 12. Can the consumer buy the plant early, and at what price? 9. Does the SECI tender mean RESCO is best for every business? No. Public competitive procurement and privately negotiated rooftop PPAs have different commercial contexts. The SECI announcement does not establish a universal RESCO price. Rajasthan businesses should compare offers using identical generation assumptions, tariff treatment, contract duration and risk allocation. Frequently asked questions Is RESCO solar completely free? No. The developer may fund installation, but the consumer normally pays for electricity under the PPA. Can MSMEs use RESCO? Potentially, depending on project size, credit assessment and long-term premises access. Does CAPEX always give better returns? No. Investment cost, financing, generation, tariffs and maintenance determine returns. Can commercial consumers receive PM Surya Ghar residential subsidy? Residential central financial assistance should not be assumed available to ordinary commercial or industrial connections. Is the NHAI tender's final PPA tariff known? Not from the tender announcement. The procurement process must conclude first. Official references SECI NHAI tender: https://seci.co.in/tender-details/Ymty SECI tenders: https://www.seci.co.in/tenders/ MNRE: https://mnre.gov.in/ Rajasthan Electricity Regulatory Commission: https://rerc.rajasthan.gov.in/ Request a project-specific RESCO versus CAPEX comparison Wattscore Energy helps businesses evaluate solar feasibility, generation, procurement, financing and implementation risks. Visit https://www.wattscore.com/ to request a commercial solar feasibility assessment. Disclaimer: All financial figures are illustrative, not guaranteed savings or financing offers.
29 October 2026 | Wattscore Insights. Should a business spend ₹40 lakh on a solar plant or sign a long-term agreement to purchase solar electricity without funding the entire installation upfront? That decision affects cash flow, electricity savings and business flexibility for years. On 28 October 2026, Solar Energy Corporation of India (SECI) published a Request for Selection for a solar photovoltaic project for the National Highways Authority of India (NHAI), Phase I, under tariff-based competitive bidding. Tender SECI000295 illustrates structured solar procurement, not a newly announced subsidy or awarded tariff. 1. What SECI's NHAI tender actually says Tender ID: SECI000295. Reference: SECI/C&P/PMC/11/07/2025-26. Published: 28 October 2026. Pre-bid: 12 November 2026. Online bid deadline: 14 December 2026. Offline deadline: 16 December 2026. Bid opening: 17 December 2026. An earlier 10 October SECI notice described Phase I as a RESCO-mode project with minimum capacity of 4 MW. Check subsequent corrigenda before relying on deadlines. 2. RESCO versus CAPEX: understanding the difference CAPEX: own the solar asset Under CAPEX, the consumer finances and typically owns the solar installation. It receives electricity savings while taking responsibility for investment, operation and maintenance directly or through service contractors. RESCO: purchase solar electricity Under a Renewable Energy Service Company arrangement, the developer typically finances, installs and operates the plant. The consumer pays under a long-term power purchase agreement (PPA). Contract terms define ownership, performance, maintenance, pricing and exit arrangements. Comparison: CAPEX generally has higher upfront investment, consumer ownership, greater control and consumer financing exposure. RESCO generally has lower initial capital outlay, developer ownership during the PPA, developer-led maintenance and a long-term contractual commitment. Neither model is universally cheaper. 3. A 100 kW commercial solar comparison Illustrative assumptions, not quotations: 100 kW plant; CAPEX ₹40,00,000; annual generation 1,50,000 kWh; avoided electricity cost ₹8/kWh; RESCO tariff ₹5/kWh; annual CAPEX O&M ₹60,000; module degradation 0.5% annually; financing excluded initially. CAPEX calculation Annual gross electricity savings: 1,50,000 × ₹8 = ₹12,00,000. After ₹60,000 O&M, first-year net operating savings = ₹11,40,000. Illustrative simple payback = ₹40,00,000 / ₹11,40,000 = 3.51 years. This is not a discounted financial return and excludes financing, taxes, inverter replacement and variability. RESCO calculation Annual PPA payment: 1,50,000 × ₹5 = ₹7,50,000. Indicative avoided grid cost: ₹12,00,000. First-year illustrative savings: ₹4,50,000. The calculation assumes every solar unit displaces electricity at ₹8/kWh without additional contractual or regulatory charges. 4. What changes when financing is included? Assume 70% debt on ₹40 lakh CAPEX: loan ₹28 lakh, equity ₹12 lakh, illustrative interest 10% per annum, five-year equal monthly instalments. Approximate EMI is ₹59,500, or ₹7.14 lakh annually. First-year operating savings ₹11.40 lakh minus loan repayments ₹7.14 lakh gives approximately ₹4.26 lakh cash flow after debt service. Financing terms, taxes and real generation can change this result materially. 5. Seven factors that can change the result 1. Daytime consumption: match expected generation with actual hourly load. 2. Electricity tariff: separate avoidable energy charges from fixed, demand and other charges. 3. Generation: account for shading, temperature, soiling and inverter losses. 4. Financing: interest rate and tenure influence CAPEX cash flow. 5. PPA escalation: fixed and escalating rates have different lifetime economics. 6. Exit terms: evaluate relocation, sale of premises and early termination. 7. Equipment performance: model degradation, maintenance and replacements. 6. When should a business prefer CAPEX? CAPEX may be attractive when the business has available investment capital, stable daytime electricity demand, long-term control of the premises, favourable financing and a desire for asset ownership. A project-specific discounted cash-flow comparison remains essential. 7. When should a business consider RESCO? RESCO may be attractive when the business wishes to preserve capital, can secure a credible developer and competitive PPA, has secure roof access and understands performance guarantees, escalation and termination obligations. 8. Twelve questions before signing a solar PPA 1. Who owns the equipment? 2. What is the initial tariff? 3. Is there annual escalation? 4. Is there a minimum purchase obligation? 5. Who bears generation shortfall risk? 6. Who maintains the plant? 7. Who pays for roof repairs? 8. What happens on relocation? 9. Who insures the system? 10. Who bears grid and metering charges? 11. What happens when the PPA ends? 12. Can the consumer buy the plant early, and at what price? 9. Does the SECI tender mean RESCO is best for every business? No. Public competitive procurement and privately negotiated rooftop PPAs have different commercial contexts. The SECI announcement does not establish a universal RESCO price. Rajasthan businesses should compare offers using identical generation assumptions, tariff treatment, contract duration and risk allocation. Frequently asked questions Is RESCO solar completely free? No. The developer may fund installation, but the consumer normally pays for electricity under the PPA. Can MSMEs use RESCO? Potentially, depending on project size, credit assessment and long-term premises access. Does CAPEX always give better returns? No. Investment cost, financing, generation, tariffs and maintenance determine returns. Can commercial consumers receive PM Surya Ghar residential subsidy? Residential central financial assistance should not be assumed available to ordinary commercial or industrial connections. Is the NHAI tender's final PPA tariff known? Not from the tender announcement. The procurement process must conclude first. Official references SECI NHAI tender: https://seci.co.in/tender-details/Ymty SECI tenders: https://www.seci.co.in/tenders/ MNRE: https://mnre.gov.in/ Rajasthan Electricity Regulatory Commission: https://rerc.rajasthan.gov.in/ Request a project-specific RESCO versus CAPEX comparison Wattscore Energy helps businesses evaluate solar feasibility, generation, procurement, financing and implementation risks. Visit https://www.wattscore.com/ to request a commercial solar feasibility assessment. Disclaimer: All financial figures are illustrative, not guaranteed savings or financing offers.