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					</table>Consumers are increasingly <a href="https://www.mercomindia.com/solar-open-access-primary-growth-engine-for-ci-units-in-india-interviewhttps:/www.mercomindia.com/solar-open-access-primary-growth-engine-for-ci-units-in-india-interview" target="_blank" rel="noopener">shifting</a> to solar open access due to rising electricity costs, corporate decarbonization goals, and the need for predictable long-term energy pricing. India <a href="https://www.mercomindia.com/india-adds-7-8-gw-of-solar-open-access-capacity-in-2025?utm_source" target="_blank" rel="noopener">added</a> 7.8 GW of open access solar capacity in 2025, a marginal increase from 7.7 GW the previous year. Challenges arising from land acquisition were among the reasons why the growth was largely flat.
Open access developers say acquiring land for projects is hampered by fragmented ownership, unclear titles, regulatory delays, and conversion challenges. Securing contiguous, litigation-free land near substations is cumbersome and time-consuming.
To overcome these challenges, developers call for digitized records, faster approvals, the creation of land banks and renewable energy zones, and the promotion of floating solar, where feasible.
According to Surendra Kumar Sharma, Head, Project Development at <a href="https://www.jirel.com/" target="_blank" rel="noopener">Jindal India Renewable Energy</a>, developers in many states spend six to 12 months only on land aggregation and conversion, which extends project timelines.
“In many regions, land parcels are small and owned by multiple farmers, making aggregation time-consuming and negotiation-intensive with unrealistic demand.”
Soubhik Das, Senior Director and Regional Business Head – East at <a href="https://ampin.energy/" target="_blank" rel="noopener">AMPIN Energy Transition,</a> illustrates additional challenges. “Land records are often incomplete or outdated. In some cases, the land has already been sold, but no one knows about it. In other cases, landowners have already passed away, but there is no official update on land ownership. Updating ownership within families also takes time.”
Another substantial challenge is the limited availability of contiguous land parcels. “Developers require land parcels that are sufficiently large, contiguous, legally unencumbered, and supported by clear titles, with no government, forest, prohibited, or disputed land in between,” said Manish Mehta, Co-founder and Chief Commercial Officer at <a href="https://sunsure-energy.com/" target="_blank" rel="noopener">Sunsure Energy</a>.
Transmission Challenges
Open access developers are increasingly shifting projects to semi-rural or remote areas where land is more accessible and cost-effective.
However, this shift often raises transmission infrastructure costs, increases evacuation distances, and creates right-of-way challenges. Higher transmission costs can affect overall project economics, particularly in open access projects where tariff competitiveness is critical for C&amp;I consumers.
Mehta noted that land near major demand centers is scarce and expensive, making it difficult to develop large-scale renewable projects closer to them. Developers are therefore increasingly setting up projects in resource-rich yet remote regions. This also leads to grid delays and evacuation constraints, which further increase the cost for renewable energy projects.
Delivery Schedules
Mehta explains why timely land acquisition is important for the financial closure of open access projects. “Timely delivery of power defines customer value; the earlier a project is commissioned, the earlier savings begin. Any delay in land directly defers that value.”
Sharma stated that C&amp;I customers typically expect strict delivery schedules under power purchase agreements, and any delay in securing land can create uncertainty about project execution timelines. Lenders also prefer projects where land ownership or lease documentation is substantially secured before financial closure.
Multi-pronged Procurement
To overcome land acquisition problems, developers leverage a combination of in-house expertise, local partnerships, and technology-driven tools.
Mehta said external aggregators play a critical role in identifying land, facilitating local engagement, and enabling consolidation. Sunsure’s in-house teams undertake legal due diligence, title verification, and compliance alignment.
Das, whose experience mainly covers India’s eastern states, said AMPIN is undertaking land acquisition mostly through in-house efforts. He stated that land aggregators can provide leads, but developers often encounter numerous issues when following up on them.
According to Sharma, developers are adopting multiple strategies, such as early land banking, partnering with experienced local aggregators, using geographic information system-based land-screening tools, and prioritizing sites near existing substations.
Strategic engagement with local communities and district authorities is also critical.
Mehta explains that companies such as Sunsure identify potential land parcels early on, engage more deeply with local aggregators, and ensure parallel progression of legal and commercial processes.
Floating Solar as an Alternative
Some state governments are recognizing the benefits of floating solar projects and are developing policy frameworks to support their efficient implementation.
Das notes that although floating solar projects are a viable alternative under land constraints, they come with some issues. He said such projects require studies, reports, and other processes, which can be expensive. Selecting suitable water bodies and maintaining suitable water levels can also pose challenges.
Mehta concurs, stating that floating solar projects can be promising options but cannot be considered full alternatives to ground-mounted solar. Such projects require large, stable water bodies, which are scarce and often under government control, amid evolving policies on private participation. However, floating solar can complement ground-mounted projects where policy support is clear and infrastructure is conducive.
Sharma said floating solar projects provide a promising complementary solution, particularly in states with large reservoirs and water bodies. These projects help reduce land pressure while improving solar efficiency due to the cooling effects of water surfaces. However, their scalability will depend on policy support, reservoir permissions, and sufficient grid access.
Shrinking Project Sizes
Sharma notes that developers are increasingly setting up smaller, distributed projects of 10-50 MW in some states, rather than large single-site projects, to optimize land use and leverage multiple substations for evacuation, particularly in open-access projects serving multiple C&amp;I clients.
“In some cases, land constraints influence project sizing, with developers planning capacity based on land that is available, legally usable, and practically aggregable rather than on the ideal project size. As a result, projects are being developed at smaller capacities, in phases, or through cluster-based models instead of a single large site,” said Mehta.
Initiatives by States
State-level policies and infrastructure play a critical role in developing open access renewable energy projects.
Das notes that some states have an established ecosystem for open access, where developers can more easily access land and connectivity.
Sharma said states such as Rajasthan, Gujarat, and Karnataka have historically been favorable to open-access projects due to abundant land availability and relatively supportive policy frameworks. However, further digitization of land records and faster approval mechanisms could significantly improve project development timelines.
The impact of state-level initiatives varies on the ground, according to Mehta. For example, Uttar Pradesh has worked on two key fronts: developing evacuation infrastructure in the Bundelkhand region, where land availability is relatively better, and permitting the use of agricultural land for solar projects without requiring conversion to non-agricultural use, which significantly eases execution.
Maharashtra and Karnataka have similarly streamlined and simplified the process for obtaining non-agricultural approvals.
Suggested Policy Changes
Developers recommend digitizing land records, standardizing policies, and speeding up approvals to reduce delays. They also suggest creating land banks, enabling faster land conversion, implementing single-window clearances, and developing pre-approved renewable zones near substations.
Additionally, they propose identifying low-quality land, offering incentives, strengthening community engagement, and rationalizing distribution company charges to create a more supportive investment environment for renewable energy projects.

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