Operational Expenditure (OpEx) refers to the ongoing costs for running a product, business, or system, which are essential for maintaining the day-to-day operations and ensuring the continuity of business activities. Unlike capital expenditures, these expenses are fully deducted in the accounting period they are incurred, impacting the company's net income directly.
Cost reduction in solar technology is primarily driven by advancements in manufacturing processes, economies of scale, and technological innovations that increase efficiency and reduce material costs. These reductions make solar energy more competitive with traditional energy sources, accelerating its adoption globally.