Rising Grid Tariffs and Policy Clarity is Driving Solar Growth in Odisha

The payback period for rooftop solar systems is four to five years

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Backed by rising power demand from commercial and industrial consumers, both rooftop solar and open access installations are expanding steadily in Odisha. Greater policy clarity and substantial power-cost savings continue to motivate businesses to adopt these renewable procurement models.

However, as policies evolve rapidly and grid tariffs rise, developers caution that consumers considering a transition to solar must act quickly. Delays, they say, could expose them to higher project costs and reduce the economic advantages that solar currently offers.

Installers say rooftop solar systems in Odisha typically offer a payback period of 4 to 5 years, and the savings extend beyond electricity tariffs.

Sandeep Anaparthi, CEO and Co-Founder of Vyomaa Energy, said that, in addition to tariff savings, businesses can also benefit from significant tax savings. He observed that by shifting to solar, companies can avail an accelerated depreciation benefit of up to 40% in the first year alone.

Consumers should also note that the return on investment depends on savings and project costs.

Industry experts point out that rooftop solar system pricing depends on several factors, including contract terms, plant capacity, component quality, safety standards, interest rates based on consumer credit rating, and electricity consumption patterns. Additional safety features—such as walkways and cable-routing boxes—can also increase overall system costs.

Sagar Kumar Bosoyi, Senior Manager-Business Development at Enerpac Energy, mentioned that the return on investment on a rooftop system depends on three factors: the technology adopted, how the asset is maintained, and natural factors such as sunlight.

However, he noted that Odisha, on average, receives 7.5 to 8 hours of effective sunshine. As a result, a 1 MW rooftop system generates about 1.2–1.3 million units annually, compared to 1.5–1.6 million units in many other states.

Technological advancements in rooftop solar are evolving rapidly. While module efficiencies drive solar energy generation, inverters play a critical role in integrating energy storage and optimizing efficiency, ensuring maximum power is extracted from the solar modules. As the only major component in a rooftop solar system that typically requires replacement during the plant’s lifetime, their quality and performance are especially important.

Microinverters ensure optimal energy generation even in shaded conditions and have a longer lifespan, resulting in a better return on investment. But hybrid inverters smoothly combine solar power management with battery storage.

Rooftop solar systems paired with battery storage (solar plus storage) offer consumers greater energy independence, reliable backup power during outages, and the potential to lower electricity bills further.

Rakshanda, Head of Sales and Marketing (West India) at Ningbo Deye New Energy, stated that such inverters allow manual control of battery charging/discharging. “With time-of-day tariffs (higher tariff during peak hours), batteries can charge when tariffs are low and discharge during peak hours, reducing electricity bills.”

Rakshanda also highlighted that battery prices are dropping, and grid tariffs are rising, an ideal time to reduce peak-time costs and support power outage management.

Anaparthi noted that pairing storage with solar can improve the rooftop system’s return on investment. “Solar alone may give 40% savings; storage can add another 25–30%.”

Open Access Projects

Developers say there is strong demand for open access projects in the state, which is a steel manufacturing hub. However, they should choose between rooftop and open access after carefully reviewing their electricity consumption.

They say that savings from open access projects will depend on how effectively consumers negotiate tariffs and frame power purchase agreements (PPAs).

Yogish HN, Vice President at Enerpac Energy, noted that when signing PPAs, consumers must be careful about project sizing. They should be mindful that even if their power consumption falls below the contracted quantum, they will still have to pay the developer as per contract terms.

Yogish added that it is vital for consumers to analyze their consumption patterns, as Odisha allows banking for up to a month. “After that, banked units become deemed sales to the power distribution company.”

Rahul Makahaniya, Chief Marketing Officer at Soleos Energy, said that policy clarity on group captive projects over the last 2.5 years has been a major driver of open access growth in the state.

However, he highlighted that Odisha consumers have been discouraged because open access is restricted to contracted demand.

Highlighting the benefits of moving to solar early, developers warn of rising project costs due to the upcoming Approved List of Models and Manufacturers for solar cells, which is likely to increase module costs.

Solar Plus Storage

Regarding storage integration for large-scale projects, developers said the current price of a battery energy storage system (BESS) makes it unviable to pair with solar open access projects; however, it’s a great alternative to diesel generators.

Makahaniya noted that the cost of operating diesel generators is around ₹23 (~$0.25)/kWh-₹24 (~$0.26)/kWh, and with solar plus storage, the cost can be reduced to as low as ₹8 (~$0.089)/kWh-₹9 (~$0.1)/kWh.

These discussions were part of Mercom’s recent C&I Clean Energy Meet in Bhubaneswar.

The next Mercom India C&I Clean Energy Meet event will be held in Nagpur on December 12, 2025.

Contact us if you plan to install solar and need guidance or vendor recommendations.

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