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					</table>For commercial and industrial (C&amp;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 <a href="https://swelectes.com/" target="_blank" rel="noopener">Swelect Energy Systems</a>, 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&amp;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 &amp; C&amp;I at <a href="https://www.ril.com/" target="_blank" rel="noopener">Reliance Industries</a>, 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 <a href="https://kalpapower.com/" target="_blank" rel="noopener">Kalpa Power</a>, 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 <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-nagpur" target="_blank" rel="noopener">Nagpur C&amp;I Clean Energy Meet</a> underscored a fundamental shift in how C&amp;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&amp;I Clean Energy Meet event will be held in <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2026-nashik" target="_blank" rel="noopener">Nashik </a>on January 9, 2026.
<a href="mailto:sales@mercomindia.com?subject=Seeking%20Solar%20Installation%20Guidance%20and%20Vendor%20Recommendations%20for%20Business" target="_blank" rel="noopener">Contact us</a> if you plan to install solar and need guidance or vendor recommendations.

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					</table>Rajasthan had about 2.4 GW of solar open access as of June 2025, making it one of India’s top states, with roughly 9.8% of the country’s total solar capacity. The state also held the largest open access pipeline, around 10.2 GW as of June 2025, mostly standalone solar at ~80%, solar plus storage at ~10%, and solar–wind hybrids at ~9%.
Policy is also pushing for storage as green energy open access projects above 5 MW must include batteries sized for at least two hours of generation or 5% of project capacity. Charge relaxations or exemptions apply when energy is supplied from a storage source. These relaxations refer to waivers or reductions of the grid/open access fees for energy delivered from a storage system.
Deepak Jain, Chief Technical Officer of <a href="https://insolationenergy.in/" target="_blank" rel="noopener">Insolation Energy</a>, attests to Rajasthan’s suitability for open access projects. Strong irradiation, large tracts of non-fertile land suitable for utility-scale plants, and the ability to utilize interstate transmission are contributory factors.
He said that cement, steel, textiles, and ceramics are shifting towards renewables to control costs and achieve long-term stability. Roadblocks remain, including grid upgrades within the state and on the ISTS, lengthy approval cycles, and a shortage of skilled manpower across manufacturing and EPC as deployments scale.
Himanshu Chandrakar, Chief Marketing Officer of <a href="https://altilium.eco/" target="_blank" rel="noopener">Altilium Energie</a>, stated that buyers must first verify that the state has truly implemented green open access for solar energy before checking for eligibility. Under green energy open access, several states now allow 100 kW. Buyers must also assess commercial viability, as the primary objective is to reduce power costs. “Sustainability and economics now go together.”
Implementation is where most C&amp;I consumers weigh capital expenditure (capex) against operating expenditure (opex). Open access is operationally more complex than rooftop, and rules can change fast, so many prefer opex. Buyers must keep practical considerations in mind. For instance, some developers avoid loan-burdened or certain manufacturing profiles. Many insist on a minimum credit rating, and a long list of seven often becomes a shortlist of three serious options.
Next come tariff and term negotiations, bank guarantees and security, and technical readiness checks, including metering, site infrastructure, and the daily monitoring and settlement cadence that differs from rooftop. Structurally, buyers choose among third-party, captive, and group captive insurance options. Rajasthan’s battery rule suggests a shift towards more solar with storage and hybrids. Buyers are also testing creative pairing. For example, a pure-solar PPA with a separately contracted battery may be preferable if the prices are favorable.
Rahul Makahaniya, Chief Marketing Officer of <a href="https://www.soleosenergy.com/" target="_blank" rel="noopener">Soleos Energy</a>, said renewable purchase obligations and related mandates are tightening. In energy-intensive industries, a defined percentage of energy must come from renewable sources. “How you meet this, through captive, third-party, or group captive, is your choice, but compliance isn’t optional. Strategically, it’s like locking electricity on predictable terms for 15–25 years.”
For captive use, with a debt-to-equity ratio of roughly 70% and 30%, the landing cost would be ₹1.75 (~$0.020)–₹2 (~$0.023)/kWh in Rajasthan. Against a typical grid landing cost of ₹8.10 (~$0.091)–₹8.15 (~$0.092)/kWh including demand charges, “you’re saving roughly ₹6 (~$0.068)/kWh.” In a 1 MW example, the annual savings would be approximately ₹18.2 million (~$205,082), depending on the units generated.
For third-party PPAs, buyers often see ₹3 (~$0.034)–₹4 (~$$0.045)/kWh, depending on the tenor and risk, but must also add open-access charges and the cross-subsidy surcharge, which can increase the all-inclusive landed cost. The upside is no capital outlay. “You post the roughly three-month bank guarantee, pay as you go, and the developer carries asset and operational risk. Many buyers invest small amounts per MW, around ₹7 million (~$78,878) for 2 MW, and then secure lower all-in tariffs than those offered through a third-party PPA.
Makhaniya emphasized that PPA clauses make or break the economics. The focus should be on tariff and escalation, banking and scheduling, change-in-law, SLAs tied to availability or CUF, curtailment, termination, security, metering, and settlement timelines. Buyers must understand lock-ins, such as 15-year terms, and offtake obligations, including the risk of paying for shortfalls if demand falls below the contracted energy level.
These opportunities were <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-jaipur" target="_blank" rel="noopener">deliberated</a> in detail at Mercom’s C&amp;I Clean Energy Meet in Jaipur recently.
Jain said adopters report significant savings compared to grid tariffs and value price certainty. ESG reporting becomes simpler, and export competitiveness improves as global buyers increasingly prefer suppliers that use renewable energy. Challenges remain, especially in predictable policy, faster approvals, and skills development.
On timing, he argued that both cost and technology favor an early move. “We started way back around 2011 at ₹180 (~$2.03 million) –₹185 million (~$$2.08 million)/MW, and today installed costs are roughly ₹25 million (~$281,705) –₹35 million ($394,388)/MW depending on components and site.” Technology has also moved. “Module efficiencies have moved beyond 22%, and with TOPCon/HJT and tandem approaches, more than 25% at the module level is plausible,” which boosts yields and long-term economics. “Locking 15–25 years of power-price stability is hard to replicate with any other input.”
Looking ahead, Chandrakar said contracts are being signed in Rajasthan. “In the next year, more than 1,000 MW of PPAs could be signed,” and over the next two to three years, contracted capacity in Rajasthan could move toward ~3,000 MW as the market expands from obvious early adopters to a broader C&amp;I base.
On storage, Makahaniya described Rajasthan’s policy as one of the most aggressive for open access and said interest is rising. He mentioned tenders or interests discussed in 1,000–2,000 MW chunks. Sizing depends on the use case, load shape, price spreads, and grid constraints, so storage can shift solar generation from non-peak to peak periods.
He pointed to peak windows such as 06:00–10:00 and 18:00–22:00 and noted that some rules may not allow banking during peak times. Storage enables buyers to match their supply to their working patterns and capture peak-price arbitrage. Policy incentives, such as charge relaxations or exemptions for storage-backed supply, improve viability even though batteries increase capital expenditure.

Rajasthan Well Suited for Green Energy Open Access Projects

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					</table>Despite growing demand from energy-intensive industrial sectors, solar open access projects are not seeing much traction in Telangana due to a lack of policy clarity.
Open access developers say that consumers can save up to ₹5 (~$0.06)/kWh under the captive model, while under the third-party open access model, the savings could be about ₹1 (~$0.01)/kWh.
At a recent Mercom India <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-hyderabad" target="_blank" rel="noopener">C&amp;I Clean Energy Meet</a> session titled ‘Clean Power Purchase – Switching To Renewable Energy And Optimizing Savings’ in Hyderabad, project developers discussed the reasons for lower adoption, the viability of different types of open access models, and the feasibility of adding battery energy storage with solar.
Developers claim that policy uncertainty has led to a significant disparity in the market for green energy open access in Telangana and Andhra Pradesh.
Yogish HN, Vice President at <a href="https://enerparc.in/" target="_blank" rel="noopener">Enerparc Energy,</a> said Telangana has added only 16 MW of open access in the last two years due to policy uncertainty. “On the other hand, Andhra Pradesh has added around 500 MW to 600 MW of solar projects.”
He added that Telangana’s new clean energy policy has drawn considerable interest from consumers and developers, but high cross-subsidy charges and banking costs continue to affect consumers.
Yogish stated that in Telangana, there is a growing demand from the IT sector, data centers, pharma, food, and textiles. However, developers like Enerparc are in a “wait and watch” mode due to policy uncertainty.
He added that executing captive or group captive projects is also a challenge in Telangana. Applications for such projects are being received, but approvals are delayed. “Utilities see open access projects as competition. Currently, rooftop solar is the only immediate option, or consumers can buy renewable energy certificates to go green,” said Yogish.
According to Rahul Makahaniya, Chief Marketing Officer at <a href="https://www.soleosenergy.com/" target="_blank" rel="noopener">Soleos Solar Energy</a>, out of 100 customers, 60 choose green energy open access for cost savings, and 30 due to regulatory pressures, such as renewable purchase obligations. “However, 10% choose solar because their customers demand it.”
Panelists said that the new clean energy policy from Telangana will mandate 35% to 40% of power procurement from renewable sources.
Load Profiling
Vikram Malkotia, Vice President (Project Development and C&amp;I) at <a href="https://upcrenewables.com/" target="_blank" rel="noopener">UPC Renewables India</a>, said consumers must understand the open access market, want competitive renewable energy, and be willing to navigate regulatory hurdles.
Explaining the process of setting up a green open access project, Malkotia said the process starts with load profiling. “We ideally ask a 15-minute load profile, but at least they must have a time-of-the-day-based load profile.”
The threshold for qualifying for green energy open access is above 100 kW. He added that to opt for open access, consumers need to decide the tenure of power procurement, ranging from short-term, five-year, and 25-year, and select the project model.
Panelists said that Telangana consumers prefer rooftop solar because net metering is allowed up to 1 MW, making it easy to invest in. If demand is higher, consumers opt for behind-the-meter projects, which allow them to consume locally but not export to the grid.
Yogish added that Enerparc analyzes the load profile of 15-minute slots over the last 12 months and suggests the optimal mix.
Savings 
Consumers can save on power costs by gaining a lower landed cost against an average grid tariff of ₹8 (~$0.09)/kWh.
Makahaniya said that the savings would depend on the type of open access model. “For captive projects, consumers can save up to ₹5 (~$0.06)/kWh.” The payback for such projects ranges between two and a half to three years.
He added that under the group captive model, consumers can procure power at a landed cost of ₹4.75 (~$0.05)/kWh with savings ranging from ₹3 (~$0.03)/kWh to ₹3.5 (~$0.04)/kWh.
While the group captive projects mandate a cumulative equity investment of up to 26%, developers say that consumers can expect a return on investment within 12 months.
He explained that under the third-party open access model, consumers can obtain power at a landed tariff of ₹6.5 (~$0.07)/kWh to ₹7 (~$0.08)/kWh, providing a saving of ₹1 (~$0.01)/kWh.
BESS Viability
Bundling of battery energy storage systems (BESS) is not viable in Telangana, and the market needs to wait for large-scale deployment.
Makahaniya said that the batteries become viable when there is a policy constraint for power banking. “In Telangana, banking is allowed up to 30% with an 8% banking charge. The battery will only be viable when the costs go down.”
“Currently, if you add a BESS to an existing solar project, it adds ₹2.5 (~$0.03)/kWh to ₹3.5 (~$0.04)/kWh to the project.”
Makahaniya said BESS is currently viable in the C&amp;I sector, particularly with a high nighttime tariff.
To draw more consumers to go green, Mercom India hosts a multicity ‘C&amp;I Clean Energy Meet’ series designed to provide C&amp;I energy buyers with the knowledge and tools they need to adopt clean energy solutions and lower their power costs. The next Clean Energy Meet event will be held in <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-jaipur" target="_blank" rel="noopener">Jaipur</a> on September 19, 2025.

Policy Uncertainty a Barrier for Solar Open Access in Telangana

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