India’s solar open access market saw a series of policy actions that shaped procurement trends throughout the quarter. The country added 6.1 GW of solar open access capacity in the first nine months of 2025, a 13% year-over-year increase from 5.4 GW, according to Mercom India’s Q3 2025 Solar Open Access Market Report.

In Q3 alone, 2.2 GW of solar open access capacity was added.  Cumulative solar open access installations reached 27.9 GW as of September 2025.

Policy updates at the central and state levels influenced project development timelines, open access charges, and market participation across key regions.

Here are some key notifications and regulatory updates from central and state authorities affecting the solar open access market during the quarter.

Central Regulatory Developments Drive Open Access Market

The Ministry of Power (MoP) specified the Renewable Consumption Obligation (RCO) trajectory, mandating that 43.33% of electricity consumption be met through renewable sources by FY 2030. The move is expected to accelerate the adoption of clean energy among distribution licensees, open access consumers, and captive users.

The Central Electricity Regulatory Commission (CERC) directed power exchanges to implement market coupling in phases to enable uniform price discovery, improve transmission network utilization, and enhance overall market efficiency.

CERC eased connectivity norms by allowing special purpose vehicles or subsidiaries of renewable developers to submit land and financial closure documents for interstate transmission (ISTS) connectivity, addressing delays caused by earlier documentation requirements tied to parent companies that had stalled several project approvals.

In a separate Order, the Appellate Tribunal for Electricity (APTEL) ruled that transmission lines developed by the Central Transmission Utility qualify as ISTS assets even when located within a single state, making them eligible for cost recovery under the Point of Connection mechanism as per CERC Sharing Regulations.

State-Level Policy Actions

The Tamil Nadu Electricity Regulatory Commission (TNERC) issued the terms and conditions for green energy open access regulations, establishing energy banking frameworks, open access categories, and charges structure to enable predictable renewable energy procurement for C&I consumers.

Tamil Nadu also revised FY26 charges, increasing transmission tariffs for all C&I consumers by 4%, thereby raising the landed cost of solar open access power. The cross-subsidy surcharge (CSS) was increased by 3.6% for industrial consumers and by 3.2% for commercial consumers, including electric-vehicle charging operators.

However, the additional surcharge was reduced by 81.5% to ₹0.1/kWh for April-September 2025, down from ₹0.54/kWh. The reduction provides notable relief to open-access consumers, partially offsetting higher transmission and CSS costs.

Wheeling charges remained unchanged. TNERC also raised the retail supply tariff for C&I consumers by 3.16%. A rise in retail tariffs is expected to push more C&I consumers to shift to open access to manage electricity costs.

Chhattisgarh’s FY26 tariff order introduced an average 1.89% hike in retail supply rates, applicable through March 31, 2026. The state has sharply raised the cross-subsidy surcharge across voltage levels, up 107.8% at 220 kV, up 46.9% at 132 kV to ₹0.94/kWh, and up 52.2% at 33/11 kV.

Wheeling charges have increased 10.3% to ₹0.30/kWh, while transmission charges rose 14.3% for long-term EHT users and 7.7% for short-term EHT consumers. These higher open-access charges increase procurement costs, but the retail tariff hike may still prompt more C&I consumers to consider open access for savings.

A detailed list of states that increased the open access charges for FY26 is included in the Q3 report.

Bihar announced its new policy, targeting cumulative renewable energy installations of 23.9 GW by 2030. The policy is expected to accelerate private participation in clean energy and enable large-scale open-access procurement by providing waivers and energy-banking provisions.

The Maharashtra Electricity Regulatory Commission (MERC) permitted consumers to use net metering for rooftop solar alongside open access power procurement under the 2023 amendment to its Distribution Open Access Regulations. This move allows C&I consumers in Maharashtra to combine both mechanisms, enhancing flexibility in managing costs and maximizing renewable energy utilization.

The Karnataka Electricity Regulatory Commission (KERC) issued the Intra-State Deviation Settlement Mechanism and Related Matters Regulations, 2025, designed to strengthen grid security by ensuring that actual power injection and drawal closely align with scheduled values through a structured commercial settlement framework. It defined availability-based tariff components, detailed computation of deviations for sellers and buyers per 15-minute block, set exchange price references and ancillary service charges, and established scheduling, curtailment, and data timelines.

The combination of strong quarterly installations, clearer regulatory frameworks, and rising retail tariffs across several states continues to reinforce open access as an attractive pathway for C&I consumers seeking cost savings and renewable adoption. While higher open access charges and lower electricity tariffs continue to raise landed costs for open access projects, reductions in select charges and greater policy flexibility in certain states are partially offsetting this impact.