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					</table><p>Higher retail tariffs in Maharashtra have spurred commercial and industrial (C&amp;I) consumers to opt for solar open access, helping them save up to 40% on electricity bills annually.</p>
<p>According to Mercom India’s <a href="https://www.mercomindia.com/product/q1-2023-mercom-india-solar-open-access-market-report-518-mw-installed" target="_blank" rel="noopener">Q1 2023 Mercom India Solar Open Access Market Report</a>, as of March 2023, the state had the country&#8217;s second-largest cumulative installed solar open access capacity of 1,037 MW, accounting for 12.5% of the total capacity.</p>
<p>During the first quarter of 2023, the state added 70 MW of solar open access capacity, up 6% quarter-over-quarter compared to about 66 MW in Q4 2022.</p>
<p>Metallurgical industries, information technology, and pharmaceutical companies were the state&#8217;s largest adopters of solar open access during Q1 2023. With a pipeline of 519 MW, Maharashtra is all set to witness more capacity additions in the following quarters.</p>
<p>Here are some important points to consider for C&amp;I consumers in Maharashtra intending to go for solar open access.</p>
<p><strong>Electricity Cost Savings</strong></p>
<p>A significant factor facilitating the growth of open access in the state is the high retail tariff, which is among the highest in the country. C&amp;I customers have shifted to the solar open access model to take advantage of lower energy costs and save on operating expenditure.</p>
<p>In April, the Maharashtra Electricity Regulatory Commission <a href="https://www.mercomindia.com/maharashtra-regulator-approves-18-hike-in-ci-consumer-tariff-for-fy24" target="_blank" rel="noopener">approved</a> raising the tariff for C&amp;I consumers for the current financial year (FY 2024).</p>
<p style="text-align: center;"><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-1.png"><img decoding="async" loading="lazy" class="alignnone wp-image-56598 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-1.png" alt="Maharashtra Open Access-1" width="520" height="163" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-1.png 520w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-1-300x94.png 300w" sizes="(max-width: 520px) 100vw, 520px" /></a></p>
<p>On average, C&amp;I customers in Maharashtra can save up to 30-40% on their electricity bills by opting for solar open access under a captive or group captive model.</p>
<p>According to Aditya Malpani, Regional Head-West, and Director, Open Access at <a href="https://ampin.energy/" target="_blank" rel="noopener">Ampin Energy Transition</a>, &#8220;The approximate savings for industrial customers is around ₹2 (~$0.024)/kWh, whereas, for commercial consumers, it is around ₹6 (~$0.073)/kWh under the captive or group captive model.&#8221;</p>
<p>Concurring with him, another leading open access developer said that a C&amp;I consumer in Maharashtra could easily save anywhere between ₹4.5 million (~$54,482)/MW and ₹5 million (~$60,535)/MW per year by opting for solar open access.</p>
<p>The table below shows savings for open access consumers in Maharashtra under the captive or group captive model.</p>
<p style="text-align: center;"><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-2.png"><img decoding="async" loading="lazy" class="alignnone wp-image-56600 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-2.png" alt="Maharashtra Open Access-2" width="549" height="323" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-2.png 549w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-2-300x177.png 300w" sizes="(max-width: 549px) 100vw, 549px" /></a></p>
<p>The net landed cost for a captive or group captive project in Maharashtra is around ₹6.56 (~$0.080)/kWh.</p>
<p>Considering this, the savings for industrial customers come to around ₹1.56 (~$0.019)/kWh and around ₹6.27 (~$0.077)/kWh for a commercial unit.</p>
<p>Notably, the cross-subsidy surcharge is exempted for projects under the captive or group captive models, whereas the additional surcharge is ₹1.36 (~$0.017)/kWh.</p>
<p><strong>Third-Party for Open Access  </strong></p>
<p>The third-party model is not a viable option for C&amp;I consumers in Maharashtra due to the cross-subsidy surcharge, additional surcharge, and other fees.</p>
<p>The net landed cost for C&amp;I consumers under the third-party model comes to ~₹8.25 (~$0.10)/kWh.</p>
<p>Under the third-party model, commercial and industrial customers must pay ₹1.69 (~$0.021)/kWh as a cross-subsidy surcharge. They must also pay wheeling and state transmission charges, making it an unviable option.</p>
<p>C&amp;I consumers are also charged ₹1.36 (~$0.017)/kWh as an additional surcharge, rendering the model unfeasible for most.</p>
<p>While there are no benefits for industrial consumers under the third-party model, commercial consumers can still save ₹4.58 (~$0.056)/kWh under the model.</p>
<p style="text-align: center;"><strong><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-3.png"><img decoding="async" loading="lazy" class="alignnone wp-image-56601 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-3.png" alt="Maharashtra Open Access-3" width="444" height="376" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-3.png 444w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-3-300x254.png 300w" sizes="(max-width: 444px) 100vw, 444px" /></a></strong></p>
<p><strong>Return on Investment</strong></p>
<p>Considering the savings and 26% equity share in captive and group captive projects, the return-on-investment period is very short, ranging from 8-12 months.</p>
<p>&#8220;An industrial consumer in Maharashtra can expect the return on investment within 10-12 months, considering the rates and the initial capital investment. On the other hand, a commercial consumer can expect to make the money back within 7-8 months,&#8221; the open access developer said.</p>
<p><strong>Power Purchase Agreements </strong></p>
<p>In addition to the savings, industrial and commercial consumers should look into various other factors, such as understanding the basic open access charges, banking mechanisms, and guaranteed energy settlement.</p>
<p>&#8220;Choosing the right green open access partner is a crucial decision for open access consumers which can significantly impact their projects&#8217; success and long-term viability. Evaluating factors such as reliability, capacity, sustainability, pricing, contractual terms, technical expertise, and reputation is crucial. The developer should have strong financial backing to support their projects,&#8221; Malpani said.</p>
<p>&#8220;Contractual terms and policies, including contract duration, exit clauses, price escalation clauses, and provisions for flexibility in energy procurement, should be reviewed before signing the power purchase agreement (PPA). By examining these aspects, consumers can mitigate risks and ensure long-term stability in energy supply,&#8221; he added.</p>
<p>Compared to variable retail tariffs, consumers can benefit from long-term open access where the tariff remains the same for the entire period. This makes long-term open access (LTOA) an attractive alternative for C&amp;I consumers.</p>
<p>The chart below shows the year-over-year growth in the retail grid tariff as compared to the fixed PPA prices for open access solar.</p>
<p><strong><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-Updated-1.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-56689 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-Updated-1.png" alt="Maharashtra Open Access-Updated 1" width="618" height="365" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-Updated-1.png 618w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-Updated-1-300x177.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-Updated-1-600x354.png 600w" sizes="(max-width: 618px) 100vw, 618px" /></a></strong></p>
<p><strong>State Policies</strong></p>
<p>The growth of open access in Maharashtra can also be attributed to the state&#8217;s supportive regulatory framework and efficient approvals by DISCOMs.</p>
<p>The state&#8217;s multi-year tariff gives stakeholders a long-term trajectory of open-access charges and assurance regarding their savings throughout the tariff order&#8217;s validity.</p>
<p>&#8220;Maharashtra has a significant C&amp;I market and one of the country&#8217;s highest retail tariffs, making green open access a popular source among these consumers. It has ample land and readily available transmission infrastructure to set up open access projects in the state. The state regulators have implemented energy settlement on a monthly basis with a banking charge of 2%. Also, it has a multi-year tariff framework allowing developers to make informed decisions on project planning and execution over the long term. Further, as per the Maharashtra State Energy Policy, there is an electricity duty waiver for renewable energy projects set up under a captive model until 2027,&#8221; Malpani noted.</p>
<p>&#8220;Coupled with timely permission for grant of open access, Maharashtra provides a conducive market for bulk energy consumers to meet green energy requirements and seamless growth for renewable energy developers looking to enter the C&amp;I market,&#8221; he said.</p>
<p>Mercom India will host the <a href="https://www.mercomindia.com/event/ci-clean-energy-meet-2023-chennai" target="_blank" rel="noopener">C&amp;I Clean Energy Meet</a> in Chennai on July 21 to bring together industry experts and C&amp;I consumers looking to save power costs to discuss various energy transition options.</p>
<p>Interested entities can register for upcoming events by sending an email to <a href="mailto:events@mercomindia.com" target="_blank" rel="noopener">events@mercomindia.com</a>.</p>
<p>To find out more about the upcoming events, click <a href="https://www.mercomindia.com/event" target="_blank" rel="noopener">here</a>.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
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<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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High Tariffs in Maharashtra Drive Open Access Solar Adoption


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					</table><p>Karnataka was the top state for solar open access installations in the first quarter (Q1) of the calendar year (CY) 2022, followed closely by Maharashtra, Gujarat, Chhattisgarh, and Tamil Nadu. The top five states accounted for 86% of the total installations during the quarter.</p>
<p>The numbers were revealed in <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q1-2022/" target="_blank" rel="noopener"><strong>Mercom India Solar Open Access</strong> Market<strong> Report Q1 2022</strong></a><strong>.</strong></p>
<p>Despite being a small state, Chhattisgarh made rapid strides toward expanding the open access solar market in Q1 2022. The state accounted for 9.94% of the total installations during the quarter.</p>
<p>In terms of cumulative installations, the state accounted for 1.85% of the total installations as of   March 2022 and is ranked 11<sup>th</sup> on the list. But despite being outside the top ten, the state is set to make its way up the table and become one of the leading solar states, especially in the open access segment.</p>
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-37073" src="https://mercomindia.com/wp-content/uploads/2022/06/Chhattisgarh-Solar-Open-Access-Market-MW.png" alt="Chhattisgarh Solar Open Access Market (MW)" width="704" height="347" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/06/Chhattisgarh-Solar-Open-Access-Market-MW.png 704w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/06/Chhattisgarh-Solar-Open-Access-Market-MW-300x148.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/06/Chhattisgarh-Solar-Open-Access-Market-MW-650x320.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/06/Chhattisgarh-Solar-Open-Access-Market-MW-624x308.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/06/Chhattisgarh-Solar-Open-Access-Market-MW-600x296.png 600w" sizes="(max-width: 704px) 100vw, 704px" /></p>
<p>&nbsp;</p>
<p>The renewable sector is at a nascent stage in the state. Thermal accounts for around 93% of the state&#8217;s total installed power capacity. Renewables account for just 7% of the state&#8217;s power mix, and solar&#8217;s share in the power mix is only around 2%.</p>
<p>With industry clusters coming up across the state in Bilaspur, Durg, Bhilai, Korba, and Raigarh, there is a vast untapped market for renewables as these new industries have no option but to source power from thermal projects while the distribution companies (DISCOMs) and the industrial units look to meet their renewable purchase obligation (RPO) targets.</p>
<p>In Chhattisgarh, a power purchase agreement (PPA) above twelve years is considered long-term, and below one year is termed as short-term.</p>
<p>The cross subsidy and additional surcharges are exempted for all solar open access business models. The transmission and wheeling charges are also exempted for the intrastate open access solar projects. Wheeling and state load dispatch charges are also not levied on long-term, medium-term, or short-term transactions for intrastate open access solar projects.</p>
<p>All these factors have led to a low net landed cost and commercial and industrial (C&amp;I) consumers are reaping the benefits of lower net landed cost compared to the retail supply tariff offered by the distribution companies.</p>
<p>The state also has a provision for annual banking settlement (April to March) with a banking charge of 2%. There is also the provision of 100% banking for captive and third-party models in the state. These factors are seen as favorable for the future growth of solar in the state, especially solar open access.</p>
<p>In January this year, the Chhattisgarh State Electricity Regulatory Commission <a href="https://mercomindia.com/no-transmission-wheeling-charges-distributed-solar/" target="_blank" rel="noopener">issued</a> amendments to its CSERC (Grid Interactive Distributed Renewable Energy Sources) Regulations, 2019 for distributed solar power projects. As per the proposed amendments, cross-subsidy surcharges and state load dispatch center charges are exempted for the entire life of the projects for the first 500 MW of solar open access projects.</p>
<p><strong>&#8216;Mercom India Solar Open Access Market Report Q1 2022&#8217; is 116 pages and contains detailed analysis and data on the market. For the complete report, please visit:  </strong><a href="https://mercomindia.com/product/india-solar-open-access-market-report-q1-2022" target="_blank" rel="noopener"><strong>https://mercomindia.com/product/india-solar-open-access-market-report-q1-2022</strong></a></p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
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<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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Chhattisgarh Makes Rapid Strides Towards Expanding Solar Open Access Market

<p>The low landed cost for open access was identified as one of the primary factors contributing to the growth of open access installations across India, as per Mercom’s <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q4-annual-2021/" target="_blank" rel="noopener">India Solar Open Access Market Report Q4 and Annual 2021</a>.</p>
<p>The landed cost of open access is defined as the cost including all open access charges, including wheeling charge, additional surcharge, cross-subsidy surcharge, and the tariff set in the power purchase agreement (PPA).</p>
<p>According to Mercom India’s report, the tariffs for long-term open access (LTOA) range from ₹3.50 (~$0.047)/kWh to ₹5 (~$0.067)/kWh in most states, and the landed open access cost ranges between ₹3.70 (~$0.049)/kWh to ₹7.14 (~$0.096)/kWh.</p>
<p>Open access installations are usually driven by demand from consumers wanting to procure power at a lower price in comparison to the power procured from the commercial and industrial (C&amp;I) retail supply.</p>
<p>In Uttar Pradesh, where the C&amp;I retail supply tariff is in the range of ₹7.94 (~$0.10)/kWh to ₹9.91 (~$0.13)/kWh, the comparatively lower landed open access cost is driving the growth of open access. The state also waived off additional surcharges, which led to developers getting considerable margins on the net landed cost. Uttar Pradesh spearheaded the open access solar capacity additions in Q4 2021 with 113 MW, accounting for 38% of the total capacity additions in the quarter. In 2021, 397.5 MW open access projects were installed in the state.</p>
<p>In Maharashtra and Tamil Nadu, the growth was primarily driven by energy-intensive industries such as cement, pharmaceutical, metals, and electrical equipment manufacturers, which set up open access projects via captive and group captive models. These industries find open access as an ideal solution to reduce costs as electricity contributes a significant amount to their operating costs. Tamil Nadu installed 217 MW of open access projects in 2021, while Maharashtra witnessed 213 MW.</p>
<p>The C&amp;I retail tariff in Tamil Nadu falls in the range of ₹6.35 (~$0.082)/kWh to ₹8.05 (~$0.105)/kWh. Although the difference between the landed open access cost, and the C&amp;I tariff is moderate, the state is witnessing a lot of upcoming projects under the group captive model.</p>
<p>Maharashtra has a C&amp;I retail tariff ranging from ₹6.96 (~$0.092)/kWh and ₹11.20 (~$0.146)/kWh, which is the highest in the commercial category among the top open access states. This makes open access solar the most viable option.</p>
<p>This year’s <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q4-annual-2021/" target="_blank" rel="noopener">report</a> included an analysis of open access installations in two new states, Kerala and Himachal Pradesh, where the installation numbers haven’t increased much during the last year.</p>
<p>The report notes that the tariffs for LTOA in Kerala range between ₹3.50 (~$0.045)/kWh to ₹4.00 (~$0.052)/kWh, whereas in Himachal Pradesh, it is ₹3.50 (~$0.045)/kWh to ₹4.50 (~$0.058)/kWh.</p>
<p>On the other hand, the commercial and industrial retail tariff in Himachal Pradesh falls between ₹4.30 (~$0.057)/kWh to ₹4.85 (~$0.064)/kWh. Kerala has a C&amp;I retail tariff ranging from ₹5 (~$0.066)/kWh to ₹7.10 (~$0.094)/kWh.</p>
<p>The difference between the C&amp;I tariffs and open access landed cost was minimal, leading the consumers in these states to opt for the C&amp;I instead, thus reducing the open access projects commissioned in these states.</p>
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-34100" src="https://mercomindia.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost.png" alt="Open Access Charges as a percent of Landed Open Access Cost" width="2152" height="795" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost.png 2152w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-300x111.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-2000x739.png 2000w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-768x284.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-1536x567.png 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-2048x757.png 2048w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-650x240.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-624x231.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-600x222.png 600w" sizes="(max-width: 2152px) 100vw, 2152px" /></p>
<p>Mercom’s analysis suggests that in Karnataka and Maharashtra, where the landed open access costs are very high, reducing these costs to meet the consumer needs could facilitate even more substantial growth of the segment. In Karnataka, open access charges account for 51% of the overall landed cost and 50% in Maharashtra.</p>
<p>In nine states, including Punjab, Madya Pradesh, and Uttarakhand, open access charges account for more than 40% of the overall landed cost.</p>
<p>In sharp contrast, with the lowest landed cost, Chhattisgarh is one the most attractive states for the growth of LTOA. In Chhattisgarh, which did away with additional surcharges and cross subsidy surcharges, open access charges contribute to a mere 5% of the landed cost. Chhattisgarh saw 47 MW of open access installation in 2021, the highest ever in a calendar year.</p>
<p>Telangana, where open access charges contribute to 44% of the landed cost, <a href="https://mercomindia.com/telangana-sets-additional-surcharge-for-open-access-power/" target="_blank" rel="noopener">increased</a> its additional surcharge by 20% to ₹1.15 (~$0.015)/kWh. Uttarakhand <a href="https://mercomindia.com/additional-surcharge-open-access-uttarakhand-2/" target="_blank" rel="noopener">reduced</a> its additional surcharge by 45% to ₹1.07 (~$0.014)/kWh.</p>
<p>The recently published <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q4-annual-2021" target="_blank" rel="noopener">Mercom India Solar Open Access Market Report Q4 &amp; Annual 2021</a> reported a record growth of 222% year-over-year in open access installations in 2021. The report provides a detailed analysis of trading markets and their impact on the sector.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/arjun-joshi/" class="vcard author" rel="author"><span class="fn">Arjun Joshi</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Arjun Joshi,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="86" height="102" /><a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener"><strong style="color: #00b451">Arjun Joshi</strong> </a>is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. <a href="https://mercomindia.com/author/arjun-joshi" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
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Low Landed Cost – A Must to Boost Open Access Solar Installations

<p>Long-term open access (LTOA) solar offers an attractive proposition for high-tension (HT) industrial consumers. In most states, the tariffs for LTOA range from ₹3.50 (~$0.047)/kWh to ₹5 (~$0.067)/kWh.</p>
<p>India installed 935 MW of open access solar capacity during 9M 2021, a 143% increase compared to 385 MW installed during 9M 2020, according to Mercom’s <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q3-2021/" target="_blank" rel="noopener">India Solar Open Access Market Report Q3 2021</a>.</p>
<p>The report notes that the landed open access cost is in the range of ₹3.70 (~$0.049)/kWh to ₹7.14 (~$0.096)/kWh in most states.</p>
<p>However, the exorbitant landed open access cost in Karnataka, Maharashtra, and a few other states has had a detrimental effect on the growth of open access.</p>
<p>Landed cost of open access is the total of all open access charges, including wheeling charge, additional surcharge, cross-subsidy surcharge, and the tariff set in the power purchase agreement (PPA). The wheeling and transmission charges vary according to the voltage parameters within the state.</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-31673 size-large" src="https://mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-2000x755.png" alt="Open Access Charges as a % of Landed Open Access Cost" width="625" height="236" srcset="https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-2000x755.png 2000w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-300x113.png 300w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-768x290.png 768w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-1536x580.png 1536w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-2048x774.png 2048w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-650x246.png 650w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-624x236.png 624w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-600x227.png 600w" sizes="(max-width: 625px) 100vw, 625px" /></p>
<p>The cross-subsidy surcharge in the states is between ₹1.71 (~$0.023)/kWh and ₹2.23 (~$0.029)/kWh.</p>
<p>According to the report, BESCOM in Karnataka has a high cross-subsidy surcharge of ₹2.23 (~$0.029)/kWh, which is the reason for such a high landed open access cost. In contrast, a high additional surcharge in Maharashtra has been responsible for a high landed cost in the state.</p>
<p>Chhattisgarh, Odisha, and Gujarat are some of the states with the lowest landed cost and are attractive for the growth of LTOA.</p>
<p>Chhattisgarh has waived additional and cross-subsidy surcharge, which resulted in 45 MW of open access installations in 9M 2021. The open access charges as a percentage of landed cost is 5%. Uttar Pradesh and Odisha have also waived the additional surcharge.</p>
<p>In Odisha, the open access charges account for 22% of the overall landed cost. In Tamil Nadu, the open access charges amount to 42% of the total landed cost.</p>
<p>Recently, several states like <a href="https://mercomindia.com/telangana-open-access-additional-surcharge/" target="_blank" rel="noopener">Telangana</a>, <a href="https://mercomindia.com/delhi-increases-additional-surcharge-open-access-consumers/" target="_blank" rel="noopener">Delhi</a>, and <a href="https://mercomindia.com/additional-surcharge-open-access-increased-gujarat/" target="_blank" rel="noopener">Gujarat</a> have increased the additional surcharge for open access consumers.</p>
<p>Last month, the Central Electricity Regulatory Commission <a href="https://mercomindia.com/open-access-renewable-energy-generators/" target="_blank" rel="noopener">issued</a> a draft regulation – ‘Connectivity and General Network Access to the Interstate Transmission System (ISTS) Regulations, 2021.’ The proposed regulations provide the framework to facilitate open access power to consumers, generating companies, and distribution licensees for ISTS use through General Network Access (GNA). GNA is open access to ISTS connectivity granted under these regulations.</p>
<p>The <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q3-2021/" target="_blank" rel="noopener">report</a> also gives insights into the short-term transactions, such as the day-ahead market, bilateral contracts, real-time market, and the green-term ahead market within the open access space.</p>
<p>According to the report, Uttar Pradesh <a href="https://mercomindia.com/uttar-pradesh-sold-the-highest-amount-of-electricity/" target="_blank" rel="noopener">sold</a> the highest amount of power in the day-ahead market in Q2 2021, accounting for 13.9% of all power sold in the quarter.</p>
<p><strong><em>For the complete report, visit:</em></strong> <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q3-2021" target="_blank" rel="noopener">https://mercomindia.com/product/india-solar-open-access-market-report-q3-2021</a></p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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