Industrial consumers in Andhra Pradesh can save up to ₹2.5 (~$0.026)/kWh by procuring solar power through open access, depending on their voltage level, distribution area, and consumption profile, industry executives say.

Open access charges in the state vary considerably depending on the consumer’s voltage level and location, including whether they are within the same distribution area.

Yogish HN, Chief Revenue Officer at Enerparc Energy, said for a consumer and generator connected at 33 kV within the same distribution area, a solar tariff of around ₹3.9 (~$0.04)/kWh-₹4(~$0.04)/kWh could result in a landed cost of approximately ₹4.2 (~$0.044)/kWh-₹4.25 (~$0.044)/kWh. This can translate into savings of about ₹2.5 (~$0.026)/kWh for some high-tension (HT) consumers.

Open access charges can rise to ₹0.8 (~$0.008)/kWh-₹1 (~$0.01)/kWh for lower-voltage consumers and to around ₹1.4 (~$0.014)/kWh- ₹ 1.5 (~$0.015)/kWh when the generator and consumer are in different distribution areas. Even with higher charges, consumers could save around ₹1.5 (~$0.015)/kWh- ₹ 2 (~$0.02)/kWh.

However, businesses should prioritize onsite solar before procuring electricity through open access.

For businesses beginning their renewable energy transition, experts recommend using available rooftop or onsite space first, then evaluating open access based on consumption requirements.

Rahul Makahaniya, Chief Marketing Officer at Soleos Energy, said rooftop solar generally provides better economics as consumers avoid several grid-related charges applicable to offsite projects.

C&I consumers can procure open access power through captive, group captive, or third-party models.

Yogish said captive and group captive projects currently offer better economics in Andhra Pradesh when compared to third-party open access. Third-party projects attract cross-subsidy charges in addition to other open access charges, significantly increasing their landed electricity cost.

Businesses considering group captive projects must understand the equity structure, power purchase agreement (PPA), applicable consumption requirements, tariff, lock-in period, and responsibilities of the consumer and developer before entering into long-term contracts.

Solar Versus Hybrid

Consumption patterns should determine whether businesses choose standalone solar or wind-solar hybrid projects.

Makahaniya said standalone solar can offer higher savings per unit, while hybrid projects can deliver greater overall savings by increasing the share of renewable energy in a consumer’s electricity consumption.

Standalone solar could potentially supply around 50% of the consumer demand, while a wind-solar hybrid project could increase renewable energy consumption to around 75%.

Although per-unit savings could decline from around ₹2.5 (~$0.02)/kWh to ₹2 (~$0.02)/kWh, the greater volume of renewable energy could increase overall savings.

The hybrid model suits businesses with consumption exceeding 50 million units.

Storage integration in wind-solar hybrid projects is ideal for businesses seeking to offset up to 80% of electricity costs with renewable energy.

Industry executives highlighted the criticality of load matching, particularly for businesses operating multiple shifts. They added that projects must be structured based on 15-minute consumption patterns, as banking and time-of-day settlement restrictions limit the ability to shift excess solar generation to other periods.

Storage Opportunities

Battery storage is also emerging as an option for businesses that depend on diesel generators or operate processes where even brief power interruptions can cause significant losses.

Makahaniya said diesel-generated electricity can cost around ₹23 (~$0.24)/kWh to ₹ 27 (~$0.28)/kWh. Businesses could instead charge batteries using grid electricity at ₹7 (~$0.07)/kWh-₹8 (~$0.08)/kWh, with added storage costs of ₹3 (~$0.03)/kWh to ₹4 (~$0.04)/kWh, resulting in around 50% savings.

To remain viable, industry executives suggested considering storage where the load profile, backup requirements, and avoided electricity costs support its economics.

The discussions surrounding rooftop, open access, and storage integration took place at the Mercom C&I Clean Energy event held in Visakhapatnam recently.

To create awareness about how businesses with high power costs can benefit from procuring renewable energy, Mercom India hosts the C&I Clean Energy event in different cities across India. The next C&I event will be held in Lucknow on October 9, 2026.