Renewable energy accounted for 54.7% of Andhra Pradesh’s power mix as of June 2026, with solar contributing about 28% and wind 14%. The state ranked sixth in India in rooftop solar installations and accounted for about 4% of the country’s 27.3 GW of installed rooftop solar capacity as of June 2026.

Industry experts said the state’s commercial and industrial (C&I) rooftop solar segment still has significant room for growth.

C&I Solar Adoption

Seshagiri Meka, managing director at Winsol Clean Tech Solutions, noted C&I solar adoption in Andhra Pradesh is higher than rooftop solar data suggests, as several businesses operate behind-the-meter systems that are not captured in net-metering statistics.

Meka said rooftop and behind-the-meter projects can offer attractive economics as consumers avoid some of the infrastructure costs associated with open access projects.

He added that solar awareness is already high among several industrial segments in Andhra Pradesh.

Economics of Rooftop Solar

Rahul Makhaniya, chief marketing officer at Soleos Energy, said businesses should avoid repeatedly postponing solar investments in anticipation of further declines in equipment prices. Any delay also means foregoing potential electricity cost savings.

Lengthy internal approval processes and financing constraints are among the primary reasons C&I solar projects are delayed.

Makhaniya said companies should first define their objective for adopting solar, whether to improve cash flow through electricity savings or meet renewable energy and sustainability requirements.

A clearly defined objective can help businesses select an appropriate procurement model and shorten the decision-making process.

CAPEX or RESCO

Makhaniya said the choice between the capital expenditure (CAPEX) and renewable energy service company (RESCO) models depends largely on a company’s capital availability and growth plans.

Under CAPEX, consumers invest in and own the solar project and the model generally results in a lower levelized cost of electricity.

Under RESCO, a developer invests in the project and sells electricity to the consumer. The consumer avoids the upfront capital expenditure and can begin realizing savings once the project starts generating power.

Companies with surplus capital may prefer CAPEX, while businesses seeking to preserve capital for expansion may opt for RESCO.

Makhaniya said a 1 MW behind-the-meter rooftop solar project could cost around ₹30 million (~$337,000), with a levelized cost of electricity of approximately ₹2.5 (~$0.026)/kWh. Under the RESCO model, tariffs could range from ₹3.5 (~$0.036)/kWh to ₹3.75 (~$0.039)/kWh. Annual operations and maintenance costs could range from ₹400,000 (~$4,500) to ₹500,000 (~$5,600)/MW.

Meka added that no single model suits every C&I consumer. The appropriate option depends on the company’s business segment, capital allocation priorities, energy requirements, and internal approval processes.

Solar Plus Storage

Makhaniya said battery storage should be evaluated based on its intended application because adding batteries increases the effective cost of solar power.

Meka said adding battery storage could increase project costs by around 30% and extend the payback period by approximately 1.5 years to around five years.

For residential consumers, batteries currently make more sense for backup power than for reducing electricity costs through energy arbitrage.

He added that rooftop solar can reduce electric vehicle charging costs at homes by replacing higher-cost grid electricity with solar power.

Meka said rooftop solar systems are typically synchronized with the grid and should not be considered standalone sources of uninterrupted power. Consumers requiring continuous supply need to evaluate separate backup arrangements.

Maintaining Project Performance

Meka said weather conditions can significantly affect solar generation. Cloud cover, rainfall, mist, and other atmospheric conditions can cause variations in output.

The experts said project financial models must account for the gradual degradation of solar modules rather than assume first-year generation levels throughout the project lifetime.

Proper operations and maintenance are equally important. Improper module-cleaning practices can damage the glass and affect generation, while routine inspections can identify problems with cables, connections, and other equipment before they lead to major failures.

Meka added that dust and particulate emissions around industrial facilities can further affect module performance and increase maintenance requirements.

Comparing Project Costs

Makhaniya said C&I consumers should not compare solar proposals solely on headline prices, as equipment and project configurations can vary substantially.

Businesses should first standardize their bill of quantities, including equipment brands, models, configurations, walkways, and other project components, before seeking quotations from multiple vendors.

This enables a like-for-like comparison of project costs.

Policy Clarity

Meka said greater regulatory clarity would help accelerate C&I rooftop solar adoption in Andhra Pradesh.

Frequent regulatory amendments can make it difficult for consumers to determine which provisions are currently applicable. Clearer communication of the prevailing regulatory framework could make project planning easier.

He said additional requirements that increase project costs could face resistance from consumers as the market adjusts to domestic-content requirements.

Makhaniya said businesses should evaluate available procurement options instead of delaying investments solely in anticipation of future policy, technology, or equipment price changes.

Depending on their energy requirements, capital availability, and site characteristics, C&I consumers can evaluate CAPEX, RESCO, behind-the-meter, rooftop, and ground-mounted solar models.

Businesses should view solar not only as a green energy initiative but also as a financial investment driven by potential electricity cost savings.

These views were shared during Mercom India’s C&I Clean Energy Meet held in Vizag.

The next Mercom India C&I Clean Energy Meet will be held in Lucknow on October 9, 2026.