For commercial and industrial (C&I) consumers in India, electricity has shifted from being a predictable operating cost to a strategic risk. Rising tariffs, volatile fuel adjustment charges, tightening time-of-day pricing, and uncertainty around banking regulations are forcing businesses to re-examine how they source and manage power.

Fuel adjustment charges can swing sharply, ranging from near zero to around ₹0.60 (~$0.0066)/kWh to ₹0.90 (~$0.010)/kWh in some months, pushing effective grid power costs toward ₹8.5 (~$0.094)/kWh to ₹9 (~$0.10)/kWh for many users and reinforcing the need for hedges.

Solar energy, once viewed largely as a sustainability initiative, is now being evaluated as a financial and operational tool that directly affects margins, reliability, and long-term competitiveness.

Rooftop Solar Most Accessible

Rooftop solar remains the most accessible entry point for many businesses, but its effectiveness depends heavily on correct sizing and design. Vikash Upadhyay, Vice President – Sales at Swelect Energy Systems, notes that a simple rule of thumb is to help consumers begin the evaluation process by dividing their monthly electricity consumption (in units) by 130, which provides a rough estimate of the optimal rooftop capacity in kilowatts.

He noted that this rule of thumb is particularly useful as a starting point in high-irradiation locations such as Nagpur, but that it still requires a detailed site assessment. While this method offers a benchmark, he stressed that it cannot replace a detailed technical assessment.

Roof type, orientation, shading, and structural complexity play a decisive role in determining both achievable capacity and cost. Tin sheds, reinforced concrete roofs, directional alignment, and shadow obstructions all influence system design. As a result, two facilities with identical electricity consumption can end up with different optimal system sizes and significantly different project costs.

No Two Rooftop Quotes are the Same

One of the most persistent points of confusion among buyers is why a 100 kW rooftop system can be quoted at vastly different prices. Upadhyay noted that pricing variation is driven by engineering complexity rather than arbitrary vendor margins. For example, the cost of a 100 kW installation can range roughly from ₹3.8 million (~$42,042) to ₹4.8 million (~$53,106), depending on roof structure, mounting systems, inverter selection, and loss-reduction priorities.

He emphasized that rooftop solar should never be compared to a commodity purchase. The correct metric is not total capex but energy generated per rupee invested. A slightly higher-priced system can deliver superior returns if it produces more units over its lifetime. Even minor design improvements can reduce overall system size while increasing generation, thereby saving on module and balance-of-system components and reducing long-term operating costs.

He also highlighted a common decision trap where C&I entities wait for prices to fall or for perfect policy clarity. Still, the savings clock only starts after commissioning, and delays often cost more in foregone savings than they recover in marginal capex reductions.

Economics of Limited Roof Space

As rooftop space becomes a limiting factor, module efficiency has emerged as a critical differentiator. Vishwanath Patil, Chief of Sales: Rooftop & C&I at Reliance Industries, highlighted the role of high-efficiency HJT modules in maximizing generation from constrained rooftops. Reliance currently manufactures modules rated at 720 Wp and above in India.

Patil explained that these modules are designed with significantly lower degradation rates, maintaining approximately 90.3% performance even after 38 years, backed by a 30-year performance warranty. Lower degradation means higher annual energy delivery over the project’s life, which improves overall project economics without requiring additional roof area.

Importantly, Patil noted that these higher-efficiency modules are being offered at market-aligned pricing rather than at a premium, making them viable even for cost-sensitive commercial consumers.

When Opex and RESCO Models Make Sense

Despite attractive payback periods, many businesses remain hesitant to invest upfront capital in rooftop solar. Patil addressed this concern by outlining alternative commercial structures in which the developer funds, installs, and maintains the system while the customer pays only for the electricity generated. Under such renewable energy service company (RESCO) or power purchase agreement models, savings begin immediately without capital expenditure.

In these arrangements, long-term performance risk, operations, and maintenance obligations rest with the developer. If generation targets are not met, contractual mechanisms provide compensation.

Patil also noted that under pure RESCO structures, the customer typically does not get depreciation benefits, so for companies focused on depreciation/tax treatment, structured finance or leasing options may be more suitable.

For customers seeking accounting flexibility, structured finance or lease structure options can be considered, where payments are treated as operating expenses while potentially retaining depreciation benefits, depending on the customer’s tax and accounting treatment.

He further stated that tariff competitiveness is central to adoption, noting that long-term (10-25 years) supply agreements can be priced attractively, with customers primarily evaluated on creditworthiness.

Open Access

While rooftop solar offers meaningful savings, its contribution is limited by available area. Shrikant Soni, DGM Business Development at Kalpa Power, explained that many industrial facilities have a minimum power demand of 1.5 MW to 2 MW, far exceeding what rooftops can support. This is where green open access becomes essential.

Open access allows businesses to procure renewable energy from off-site solar or wind projects, significantly expanding the scale of clean energy adoption. Soni noted that policy developments have enabled more hybrid power approaches, combining rooftop solar, green open access procurement, and on-site storage to address different tariff periods and operational needs.

Tariffs, Banking, and Load Profiling

Policy changes, particularly those related to banking and time-of-day (ToD) tariffs, have introduced new complexity into project design. Soni described how recent multi-year tariff revisions and changes to banking rules in Maharashtra temporarily slowed decision-making as industries reassessed viability. However, he observed that most consumers eventually returned to solar once they recognized that grid power costs, including fuel adjustment charges, remained high and unpredictable.

A critical shift has been the increased importance of detailed load profiling. By analyzing consumption in 15-minute blocks, solution providers can now design systems that better align generation with high-cost consumption windows. In some cases, system sizes were reduced by 20-25% to minimize exposure to unfavorable banking conditions while preserving savings.

A specific ToD example discussed was the expanding peak period in some cases, from roughly 6 PM-10 PM earlier to as wide as from 5 PM until midnight, making evening consumption increasingly expensive and sharpening the value of better profiling and shifting strategies.

Battery Storage

Battery energy storage has taken center stage as tariff structures increasingly penalize evening and nighttime consumption. According to Soni, rising night-time tariffs have accelerated interest in batteries, especially where banking benefits are limited. Storage enables businesses to shift solar generation into high-tariff periods and stabilize costs. One figure cited for the night-time tariff saving is around ₹2.17 (~$0.024)/kWh, reinforcing the economics of storage-backed shifting.

Beyond tariffs, batteries are also gaining traction as reliability assets. Diesel generation typically costs ₹30 (~$0.33)/kWh to ₹35 (~$0.39)/kWh, but the financial impact of outages often extends far beyond fuel costs. For facilities running CNC machines, robotics, or continuous processes, even momentary interruptions can lead to significant rejection losses. In this context, batteries help protect production quality and output, not just reduce energy costs.

Soni also cited cases where load-shifting becomes a deliberate operating strategy. For example, facilities are shifting a substantial share of consumption from night hours to morning, supported by storage and revised operating schedules. A huge positive socio-economic impact for industries and the workforce.

When batteries are explicitly designed to address high-tariff consumption, integrated rooftop solar-plus-storage systems have demonstrated payback periods of roughly 3.5 to 4 years in certain commercial and industrial applications.

Waiting Rarely Improves Outcomes

A recurring behavioral challenge is the tendency to delay projects in anticipation of price drops or policy clarity. Upadhyay argued that such delays often cost more in lost savings than they recover in reduced capex. Module prices are unlikely to fall dramatically due to persistent supply-chain dependencies, and policy frameworks tend to evolve incrementally rather than deliver sudden, perfect clarity.

He added that a large portion of system economics remains tied to modules and upstream materials, limiting the probability of sharp, sustained price declines in the near term.

Savings only begin after commissioning. Whether through capital investment or generation-based payment models, deferring decisions postpones financial benefits.

Solar as an Energy Management Tool

Taken together, the industry discussion at Mercom’s Nagpur C&I Clean Energy Meet underscored a fundamental shift in how C&I consumers approach clean energy. Solar is no longer viewed in isolation, but as part of a layered energy management strategy that integrates rooftop generation, off-site procurement, storage, and demand optimization.

Speakers also emphasized that procurement choices are increasingly shaped by compliance and sourcing considerations alongside economic factors, as buyers seek future-proof pathways in a changing policy environment. For attendees who are commercial and industrial unit owners and qualified large power consumers, the discussions and connections with the solution providers are an eye-opener on how to use solar and storage dynamically to enhance operating cost savings.

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

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