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					</table>Proposed restrictions on using banked renewable energy across time-of-day periods are strengthening interest in battery energy storage systems (BESS) among commercial and industrial (C&amp;I) consumers in Maharashtra, particularly those seeking to shift surplus daytime renewable generation to evening demand.
The March 2026 Maharashtra Electricity Regulatory Commission review order provides that banked energy can be drawn only in the same or a lower time-of-day slot than the one in which it was banked. However, the Appellate Tribunal for Electricity has stayed the order, and the appeal is still pending.
For consumers with surplus daytime solar generation and substantial evening demand, <a href="https://www.mercomindia.com/storage-becomes-critical-to-solar-economics-after-maharashtra-banking-changes" target="_blank" rel="noopener">batteries</a> can store electricity that may otherwise go unused or receive a lower settlement value under a restricted banking framework. Under the BESS-as-a-Service model, the service provider can finance, own, and operate the system while the consumer pays for storage as an operating expense.
The management and technical team at <a href="https://www.vibgyorenergy.com/" target="_blank" rel="noopener">Vibgyor Energy</a> said economics could be particularly relevant for renewable energy power purchase agreements (PPAs) structured around earlier banking arrangements.
The company cited an illustrative 13.5 MW solar and wind portfolio where applying the restricted banking framework would leave around 5.5 million units annually, or about 19% of generation, unutilized. The volume varies substantially by day, from around 500 units on a monsoon day to 30,800 units on a peak day, with a daily average of 15,200 units.
The volume varies substantially by day, from around 500 units on a monsoon day to 30,800 units on a peak day, with a daily average of 15,200 units.
Vibgyor Energy evaluated three approaches to managing this surplus. Reducing the contracted PPA capacity would lower the consumer&#8217;s renewable energy share from 26% to 16%, while around 5% of generation would still lapse. Combining a partial PPA reduction with a smaller BESS would raise the renewable energy share to 28%, although about 6% would still lapse.
A BESS sized to absorb the entire surplus, by comparison, would avoid PPA surrender, recover the surplus energy, and increase the renewable energy share to 33%, according to the company&#8217;s model.
Rounak Muthiyan, CEO at <a href="https://kalpapower.com/" target="_blank" rel="noopener">Kalpa Power</a>, estimated the daytime-to-evening tariff difference at approximately ₹4 (~$0.042)/kWh to ₹4.5 (~$0.047)/kWh for industrial consumers and ₹8 (~$0.083)/kWh to ₹10 (~$0.104) /kWh for commercial consumers. Such tariff spreads can create an arbitrage opportunity where surplus daytime renewable energy can be stored and discharged against higher-cost evening consumption.
The economics can be more favorable for facilities with substantial surplus solar generation, significant evening demand, high maximum-demand penalties, or those seeking storage without upfront capital expenditure.
Sizing Determines Returns
Battery sizing must account for variations in generation and consumption rather than average demand alone.
For existing renewable energy projects, particularly those developed under earlier banking arrangements, Kalpa Power recommends assessing the generation profile, consumer load, available surplus, peak load to be offset, and economically useful cycling frequency. For new projects, the BESS can be designed around the consumer&#8217;s peak-demand profile from the outset. Oversizing can weaken returns if additional storage capacity remains underutilized.
Vibgyor Energy has modeled a full year of generation and consumption at 15-minute intervals. Peak instantaneous surplus determines the power conversion system (PCS) capacity, while average usable surplus after losses determines battery capacity.
For an 8 MWh system, Vibgyor selected a 2.75 MVA PCS rather than sizing it for the occasional 8 MW instantaneous surplus. The configuration provides 269 full-charge days, 92 partial-charge days, and only four days without usable surplus, equivalent to approximately 308 full cycles annually.
According to Vibgyor, more than 250 full-cycle days annually can support BESS-as-a-Service economics. Battery duration must also match the consumer&#8217;s load profile; a two-hour demand spike requires a different configuration from a relatively flat five-hour industrial shift.
System losses must also be factored into sizing and economics. In Vibgyor&#8217;s example, approximately 8,675 kWh must be drawn at the point of coupling, including 176 kWh of auxiliary consumption, to store 8,000 kWh. About 7,241 kWh is ultimately delivered back, resulting in grid-to-delivered efficiency of around 83% to 84%.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/10/Illustrative-Operating-and-Commercial-Parameters-of-a-2.8-MW-8-MWh-Battery-Storage-System-as-a-Service-Model.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-106151 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/10/Illustrative-Operating-and-Commercial-Parameters-of-a-2.8-MW-8-MWh-Battery-Storage-System-as-a-Service-Model.png" alt="Illustrative Operating and Commercial Parameters of a 2.8 MW-8 MWh Battery Storage System-as-a-Service Model" width="422" height="519" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/10/Illustrative-Operating-and-Commercial-Parameters-of-a-2.8-MW-8-MWh-Battery-Storage-System-as-a-Service-Model.png 422w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/10/Illustrative-Operating-and-Commercial-Parameters-of-a-2.8-MW-8-MWh-Battery-Storage-System-as-a-Service-Model-244x300.png 244w" sizes="auto, (max-width: 422px) 100vw, 422px" /></a>
Vibgyor Energy said its modeling treats the restricted banking framework as the base case and any favorable APTEL outcome as upside.
Muthiyan said two economically productive cycles a day can improve battery utilization and, in some cases, reduce the payback period to around four years.
Economics Depend on Utilization
Industry estimates cited by Kalpa Power indicate that well-designed systems combining peak shaving, tariff arbitrage, and solar optimization can achieve payback periods of approximately four to seven years and internal rates of return of 13% to 20%. Returns remain site-specific and depend on load profile, tariff spread, demand charges, renewable generation, utilization, and cycling strategy.
Vibgyor&#8217;s illustrative BESS-as-a-Service proposal has a fixed capacity charge of ₹532,000 (~$5,546)/MW/month, translating to ₹17.88 million (~$186,405) annually, without escalation. The agreement guarantees a minimum annual delivery of 2 million kWh.
At the minimum delivery level, the effective storage charge is ₹8.94 (~$0.093)/kWh. At the modeled first-year delivery of 2.525 million kWh, it falls to ₹7.08 (~$0.074)/kWh. Since the capacity payment remains fixed, higher utilization lowers the effective per-unit storage cost.
Vibgyor cautioned against applying a single payback period or internal rate of return across projects because tariff categories and operating patterns can produce different results even for similar battery systems.
Contract Structure and Performance
Muthiyan said renewable energy linked storage arrangements generally resemble PPAs or energy usage agreements. These can operate on a take-or-pay basis, with customers committing to consume energy at agreed rates. Separate peak and off-peak rates may also apply.
Standalone BESS can instead operate more like an operating lease. The developer retains ownership and operational responsibility, while the consumer pays either a fixed monthly capacity charge or a variable charge linked to discharged electricity.
Under these structures, performance guarantees matter because the service provider, not the consumer, typically bears responsibility for maintaining contracted battery performance.
Vibgyor&#8217;s indicative agreement has a 12-year tenure and guarantees at least 95% annual availability after a 60-day stabilization period. AC-to-AC round-trip efficiency declines from 83.9% in the first year to 82.1% in year 12, while usable capacity declines from 7.27 MWh to 5.95 MWh.
Any augmentation required to meet contracted performance is funded by the provider. Liquidated damages for performance shortfalls are capped at 5% of the annualized capacity charge, while the obligation to rectify the deficiency continues regardless of the damages paid.
At approximately 308 cycles annually, Vibgyor estimates that an 8,000 to 9,000-cycle lithium iron phosphate cell could theoretically provide 26 to 29 years of cycling. Calendar aging, availability, and round-trip efficiency guarantees therefore become more relevant constraints than cycle count for its 12-year contract.
Muthiyan said industry contract periods can range from 15 to 25 years, with augmentation potentially required to maintain contracted performance as batteries degrade.
Infrastructure Costs Remain Important
Falling battery prices do not necessarily translate into proportionate declines in total BESS project costs. Transformers, cabling, civil works, fire safety, metering, and grid interconnection remain significant cost components even as battery and PCS costs decline.
Existing electrical infrastructure can also influence project economics. At one industrial site assessed by Vibgyor, two existing 4 MVA transformers were around 70% loaded, leaving approximately 1.2 MVA of spare capacity on each transformer. The company selected a single 33 kV interconnection and a 2.75 MVA PCS against 2 MW of spare demand.
Under Vibgyor&#8217;s service model, the provider funds the battery, PCS, transformer, cabling, feeder, civil works, metering, energy management system, insurance, and operation and maintenance up to the point of interconnection. The consumer provides site space, spare feeder access, auxiliary supply capacity, and any sanctioned load or contract-demand upgrades.
Multiple Uses Improve Economics
The evening peak period from 5 PM to midnight accounts for around 33% of annual consumption in Vibgyor&#8217;s illustrative project, or 13.1 million kWh out of 39 million kWh, creating scope to shift daytime renewable energy to evening consumption.
Customer-end BESS can also provide peak shaving, demand management, deviation reduction, backup, renewable energy integration, reactive power, and voltage support.
In Vibgyor&#8217;s example, 2 MW of spare contract capacity can be used for peak shaving through the same PCS, potentially avoiding an increase in contract demand. The system can also maintain power factor at around 0.99 compared with an uncorrected level of approximately 0.85.
For backup requirements, 20% to 30% of the battery&#8217;s state of charge can be maintained as reserve, leaving the remaining capacity available for daily energy shifting and peak shaving.
Muthiyan identified peak shaving, time-of-day arbitrage, diesel displacement, backup, power quality support, renewable firming, open access optimization, and deviation settlement as potential value streams.

Battery Storage Emerges as Peak Demand Management Tool for Maharashtra Businesses

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					</table>As commercial and industrial companies explore clean energy options to offset rising energy costs and meet their sustainability commitments, on-site rooftop solar solutions have emerged as a viable solution.
For large-scale manufacturers, electricity is a critical input that affects production costs, particularly at facilities where refrigeration, bottling lines, packaging equipment, and round-the-clock operations demand substantial power.
Understanding how an insufficient power supply can hamper production lines, companies are leveraging solar rooftop solutions to not just slash grid power costs but meet fluctuating power requirements.
In April 2026, Haryana-based Varun Beverages (<a title="https://www.varunbeverages.com/" href="https://www.varunbeverages.com/" target="_blank" rel="noreferrer noopener">VBL</a>) commissioned a 5.5 MW rooftop solar power system at its Supa manufacturing facility in Parner, Maharashtra.
The project is expected to generate approximately 7 million units of electricity annually, meeting around 20% of the facility’s total electricity requirements. The company has estimated monthly savings of up to ₹5.5 million (~$58,000), with every unit of solar electricity offsetting grid power priced at approximately ₹8.30 (~$0.087)/kWh.
The Supa facility consumes approximately 37.7 million units of electricity annually and operates with a contracted demand of 9,990 kVA. Electricity consumption at the facility varies significantly throughout the year, ranging from about 1.7 million units during lean production months to nearly 4 million units during peak production months.
Developed by Delhi-based <a href="https://vibgyorenergy.com/" target="_blank" rel="noopener">Vibgyor Energy</a>, the solar project was designed based on an analysis of 12 months of consumption data to accurately match the facility’s seasonal load profile and avoid over- or undersizing.
The rooftop installation consists of 9,322 RenewSys solar modules rated at 590 W each and 32 Sungrow SG125CX-P2 string inverters.
Ishaan Gadhoke, Executive Director at Vibgyor Energy, said that the use of string inverter architecture enables granular maximum power point tracking and string-level monitoring across multiple rooftop sections, improving energy generation and fault detection capabilities.
The project spans multiple rooftops across the main facility and other buildings, each with different structural characteristics, orientations, and rooftop obstacles.
Vibgyor conducted roof-by-roof structural and load assessments, customized mounting layouts and string configurations for each section. The design also incorporated shadow analysis, maintenance walkways, and safety provisions while ensuring all structures remained within permissible load limits.
“As the entire output is self-consumed, every solar unit offsets grid power at the full applicable tariff,” Gadhoke said. The project provides a long-term hedge against electricity tariff escalation while improving the beverage manufacturer&#8217;s energy cost predictability, the company added
About the regulatory challenges during the implementation phase, Vibgyor Energy stated that the project was among the early large commercial and industrial rooftop installations established under the Maharashtra Electricity Regulatory Commission’s (MERC) Net Billing Regulations, 2023. The company worked with the utility and represented the matter before to ensure that the billing treatment aligned with regulatory provisions and protected the project’s intended savings.
Varun Beverages decided to go for solar to improve energy efficiency, optimize operational costs, and support broader sustainability goals. The system was planned and integrated in alignment with operational requirements to ensure smooth implementation with minimal disruption to routine activities at our Supa Plant.
The company said it is evaluating opportunities to expand its adoption of renewable energy across its facilities as part of its long-term sustainability roadmap and its commitment to achieving net-zero greenhouse gas emissions by 2050.
Last September, Varun Beverages <a href="https://www.mercomindia.com/varun-beverages-inks-22-5-mw-solar-plus-storage-ppa-with-vibgyor-energy" target="_blank" rel="noopener">signed</a> a power purchase agreement with Vibgyor Energy for a 22.5 MW solar project integrated with a battery energy storage system in Rajasthan.
Mercom India organizes C&amp;I Clean Energy Meets across the country to connect solar developers with commercial and industrial businesses looking to adopt clean energy solutions on a common platform.
The next event in the series will be held in <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2026-hyderabad" target="_blank" rel="noopener">Hyderabad</a> on August 21, 2026.

Varun Beverages Hopes to Save Big on Power Bill with Rooftop Solar

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					</table>With the June 1, 2026, deadline for mandatory sourcing of solar cells from the Approved List of Models and Manufacturers (ALMM) List-II fast approaching, solar developers are urging the Ministry of New &amp; Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) to consider a time-bound extension, citing concerns over limited operational Tunnel Oxide Passivated Contact (TOPCon) capacity and potential project delays.
They warn of supply-demand mismatches, cost escalation, and execution risks if the mandate proceeds without adequate stabilization of domestic production. However, manufacturers oppose any deferment, arguing that sufficient capacity exists and that frequent policy reversals could undermine investor confidence and ongoing investments in India’s solar manufacturing ecosystem.
The MNRE in December 2024 <a href="https://www.mercomindia.com/list-ii-for-solar-cells-into-force-from-june-2026" target="_blank" rel="noopener">mandated</a> that, from June 1, 2026, solar modules must use cells sourced only from manufacturers listed under the ALMM List-II (Solar PV Cells). This move is aimed at strengthening domestic manufacturing.
Solar developers are considering requesting the MNRE to extend the implementation date for ALMM List-II (Solar Cells), citing insufficient domestic TOPCon cell capacity.
They argue that the current operational TOPCon capacity may lead to a supply–demand mismatch, project delays, and cost escalation once mandatory sourcing begins.
According to Mercom India Research, the current operational cell lines have a capacity of around 28 GW.
Solar developers believe that while certain project categories are exempted based on bid submission dates and commissioning timelines, a large pipeline of future projects will be hamstrung by the limited TOPCon cell capacity, driving prices higher.
They have proposed a time-bound extension (up to October 1, 2026) to allow domestic capacity to ramp up smoothly and ensure seamless project execution.
“The extension will not affect the domestic manufacturing market in any way. Domestic manufacturers can offload all their production to domestic or international markets without any problems and at very high prices. If you look at the profitability of all the companies listed under ALMM, you will see that all are performing well, making handsome profits and having sufficient reserves,” said Viraj Gadhoke, Managing Director at <a href="https://vibgyorenergy.com/" target="_blank" rel="noopener">Vibgyor Energy</a>.
Gadhoke said TOPCon is preferred by commercial and industrial (C&amp;I) consumers. “To remain competitive and deliver a solution, we have been pitching TOPCon to the market as it requires less land. And now TOPCon will not be available at optimal, appropriate quality and price.”
According to industry experts, working capital constraints remain a significant challenge for module manufacturers. Most production lines can comfortably operate for only 30–45 days with confirmed orders. Beyond that horizon, liquidity pressure begins to build. At the same time, the current lead time from order to delivery of finished modules is at least 60 days.
The industry says it remains unclear how this dynamic will evolve with greater cell integration, but it could potentially intensify working capital requirements in the short term. In practice, working capital stress often forces manufacturers to operate lines below optimal capacity, even when nameplate capacity appears sufficient.
“Most of the cell lines that will be announced online, from now to June 2026, the stabilization for the timelines for original equipment manufacturers (OEMs) is a minimum of six months before they get stable production capacity. For developers, independent power producers (IPPs), or engineering, procurement, and construction (EPC) companies that need to provide generation guarantees, it is an extremely sensitive matter, and we need a stable technology to work with,” noted Rounak Muthiyan, Founder of <a href="https://kalpapower.com/" target="_blank" rel="noopener">Kalpa Power</a>.
Developers have reiterated their commitment to continued investments in advanced cell technologies, including TOPCon and next-generation solutions. However, they believe that a pragmatic, time-bound extension and a phased implementation of the ALMM List-II for solar cells are required to ensure a smooth transition without unintended disruptions to project execution.
Muthiyan noted that if the implementation is not deferred, there will be a run on the price, given the limited number of manufacturers. The shortage will drastically reduce the reliability of solar projects, as none of the OEMs can provide guarantees.
Commenting on the tightening of TOPCon cell supply in the near future, Muthiyan said right now, everything is based on nameplate capacity. None of them is evaluating the capacity utilization factor, which has such a strong bearing. So, unlike the ALMM list for modules, which was primarily driven by the ability to install or assemble, developers must rely on chemical facilities, in the case of cells, to achieve a stable production.
“I think it&#8217;s asking way too much, too early.”
Developers believe it’s not wise to take on any new projects this year as the deadline approaches. From a C&amp;I segment perspective, they believe that relaxing the implementation date for projects would suit everyone.
Recently, MNRE <a href="https://www.mercomindia.com/solar-cell-capacity-under-almm-list-ii-increases-to-26-gw">issued</a> the fourth revised Approved List of Models and Manufacturers List-II for solar cells, raising the total enlisted capacity to 26 GW.
“Even today, people are talking about nameplate capacity rather than the actual capacity delivered. So, I think unless and until we get sizable metrics about what is a stable production capacity from all the manufacturers over the last six months, it&#8217;s very hard for developers to find trust in the market that the market has an ability to deliver,” opined Muthiyan.
Avinash Hiranandani, Vice Chairman and President at <a href="https://www.renewsysworld.com/" target="_blank" rel="noopener">RenewSys India</a>, a solar cell manufacturer, had a different take. “The government wants people to invest in the manufacturing sector. There are people at various stages of investment. Frequent policy reversals undermine credibility and weaken investor confidence,” he said. He contended that there is sufficient TOPCon capacity in the market.
“The challenge is that once a deadline is postponed, it tends to keep getting pushed further. I am not in favor of extending the implementation deadline,” Hiranandani said.
The June 2026 deadline is not far away. The Ministry of New and Renewable Energy must decide one way or the other so that solar developers have clear visibility.
With just a few months left before the June 2026 deadline, the industry is seeking regulatory clarity. Developers argue that a calibrated, time-bound extension could ensure smoother execution and prevent unintended disruptions and escalated prices, while manufacturers stress that policy consistency is essential to sustain investment and capacity expansion. Ultimately, MNRE’s decision will need to balance supply readiness with investor confidence, ensuring that India’s push for domestic manufacturing does not inadvertently slow solar deployment.
Either way, MNRE should provide clarity well ahead of the deadline to avoid further confusion and speculation, giving both developers and manufacturers sufficient time to prepare and recalibrate their strategies.

Developers Seek ALMM List-II Extension, Solar Manufacturers Push Back

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