Maharashtra is steadily cementing its position as one of India’s important markets for green energy procurement through the open access route. The state ranks second in installed open-access solar capacity, accounting for over 17% of the country’s installations as of September 2025.

Although quarterly installations dipped during the July to September period due to regulatory uncertainty, the cumulative picture remains strong, backed by a robust pipeline of solar, wind, hybrid, and storage-linked projects.

Demand Drivers

Two distinct motivations are driving the demand for open access in Maharashtra. A majority of companies are turning to renewables to cut electricity costs and improve cash flows, while a smaller but significant segment is compelled by regulatory mandates and international supply-chain requirements to go green.

“About 80% of companies want to go green to stay competitive and fix their electricity costs for the next 25 years,” said Rahul Makahaniya, Chief Marketing Officer at Soleos Energy. The remaining 15% to 20% are largely responding to Renewable Purchase Obligations (RPOs) and ESG expectations from global clients.

Sector-wise, demand spans textiles, plastics, education institutions, and manufacturing, but data centers, particularly in Mumbai, are emerging as a key growth driver. Their need for reliable, uninterrupted power is pushing adoption beyond conventional solar into more sophisticated renewable energy configurations.

Policy Stability

After a phase of uncertainty that slowed installations in mid-2025, policy clarity has helped restore momentum. The continuation of 100% energy banking (excluding peak hours) has been especially crucial in reviving stalled inquiries and encouraging new commitments.

The real impact of policy is on the quantity of energy that a company can source from green power. For instance, a company consuming 100 units of electricity may, under restrictive policies, be able to source only 30% to 32% of its consumption from renewable energy.

In this scenario, savings are realized only for the 30 units, while the remaining 70 units remain subject to conventional tariffs. Conversely, under a favorable policy framework, the same company could green as many as 70 units, effectively doubling the potential savings.

Understanding the Procurement Pathway

For businesses, procuring power through open access is no longer a complicated exercise. Consumers can opt for CAPEX models, investing fully in solar parks and benefiting from accelerated depreciation and savings up to ₹7 (~$0.08)/kWh, or choose OPEX and hybrid models, which offer cheaper power without upfront investment.

Pramod Maladkar, Senior General Manager at Enrich Energy, stated, “The process begins with a detailed analysis of the monthly electricity bill.” Factors such as contract demand, consumption patterns, and load profiles determine the appropriate sizing of projects.

Once these fundamentals are clear, execution tends to be smooth, especially when handled by developers offering end-to-end solutions.

Storage Still a Selective Play

According to Makahaniya, Maharashtra is yet to witness significant adoption of batteries by industrial units. Capital costs for battery storage remain high, given that the base price for energy discharged from the battery is approximately ₹2 (~$0.024)/kWh to ₹2.5 (~$0.030)/kWh. For industries sourcing grid power at ₹8 (~$0.10)/kWh to ₹9 (~$0.11)/kWh or generating solar power at ₹4 (~$0.048)/kWh, integrating batteries often becomes uneconomical unless grid tariffs exceed ₹10 (~$0.12)/kWh to ₹12 (~$0.14)/kWh.

He also remarked that high capital costs, currently in the range of ₹9 million (~$108,400)/MWh to ₹12 million (~$144,600)/MWh, limit its viability to consumers with high tariffs and round-the-clock demand, such as hotels, commercial buildings, and data centers.

For these users, storage-backed renewable power can deliver round-the-clock green energy at ₹5.5 (~$0.066)/kWh to ₹5.7 (~$0.069)/kWh, while locking in tariffs for up to 25 years. “Green data centers are the future,” Makahaniya noted, pointing to rising ESG compliance pressures from international investors.

However, concerns persist about long-duration outages and battery charging constraints, which is why most industries continue to retain diesel generators as backup power.

Cost reductions are expected to change the equation. With sodium-ion technology, battery prices could fall to ₹5.5 million (~$66,300)/MWh to ₹6 million (~$72,300)/MWh, making storage viable for a wider industrial base.

On the other hand, commercial segments are increasingly finding batteries viable at tariffs in the ₹16 (~$0.19)/kWh to ₹17 (~$0.20)/kWh range, and hotels and commercial complexes are beginning to explore storage solutions.

Data centers represent another rapidly growing segment, where the demand for round-the-clock power and a 100% green energy supply, through a mix of solar, wind, and batteries, is driving project closures, particularly in Mumbai.

These developments suggest that while industrial uptake remains moderate, commercial and high-demand sectors are emerging as key drivers for renewable energy storage deployment.

Power Purchase Agreement

Given the long-term nature of open access contracts, speakers stressed the importance of carefully structured PPAs. Consumers must assess the credibility of developers, tariff mechanisms, generation guarantees, lock-in periods, exit clauses, and penalties.

The choice between third-party, captive, and group captive models depends largely on investment appetite and risk tolerance.

Creditworthiness plays a pivotal role. Companies with stronger credit ratings can secure significantly better tariffs, as lenders and investors price risk conservatively. As one panelist pointed out, improving credit profiles can translate directly into long-term savings.

“Delaying decisions can be costly. Solar technology has matured, prices have stabilized, and returns have remained consistent over 15 to 20 years,” said Maladkar, noting that many companies regret postponing investments. The consensus was clear: the economics of open access are unlikely to improve dramatically with time.

The discussions at Mercom India’s Nagpur C&I Clean Energy Meet brought together data, policy interpretation, and on-ground experience in a way that helped cut through the complexity surrounding open access procurement. Companies that were expecting significantly better economics later may not see that improvement and may instead face higher surcharges, fewer banking benefits, and reduced incentives, making early adoption potentially more attractive than waiting.

More importantly, the session shifted the conversation from whether companies should adopt green power to how quickly and effectively they can do so, reflecting the growing role such platforms play in shaping informed decision-making in India’s evolving renewable energy landscape.

The next Mercom India C&I Clean Energy Meet event will be held in Nashik on January 9, 2026.

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