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					</table>Commercial and industrial (C&amp;I) entities, large institutions, and residential complexes are increasingly turning to clean power solutions that offer greater cost efficiency than conventional grid tariffs. Rooftop solar has long been an attractive option for reducing operating expenses and enhancing sustainability credentials. However, beyond on-site installations, solar open access is rapidly emerging as a scalable alternative, enabling businesses to procure renewable energy at larger volumes while optimizing long-term cost savings.
Growth of Open Access Across the C&amp;I Segment
Tamil Nadu has emerged as a strong market for solar open access, with approximately 2.7 GW installed as of September 2025, accounting for nearly 9.6% of India&#8217;s total installations. The state’s supportive regulatory framework, combined with a growing portfolio of hybrid (solar + wind) projects, has made it an attractive destination for C&amp;I consumers seeking reliable and competitively priced green power.
Rahul Makahaniya, Chief Marketing Officer at <a href="https://soleosenergy.com/" target="_blank" rel="noopener">Soleos Energy</a>, shares that before opting to procure green energy via open access, companies must decide on the appropriate procurement model &#8211; captive, group captive, or third-party. The group captive model, which is widely preferred, requires consumers to hold at least 26% equity in the project and commit to a long-term power purchase agreement (PPA), typically with a 12–15-year lock-in. Key commercial considerations include the PPA tariff, equity contribution, lock-in period, and termination clauses.
He added that the process from feasibility assessment and term sheet execution to land acquisition, regulatory approvals, construction, and commissioning typically takes eight to twelve months.
“Tamil Nadu is also among the leading states in India in terms of strong solar irradiation levels. Solar projects in the state generally generate around 1.4-1.5 million units annually, with a capacity utilization factor (CUF) of 17–19%, ensuring strong generation performance and predictable returns,” Makahaniya added.
While the transition to solar energy is central to advancing a low-carbon future while supporting economic growth, electrical systems play a critical role in efficiently capturing, converting, and distributing solar power.
In the utility-scale segment, the overriding objective is to continuously improve efficiency and reduce the Levelized Cost of Energy (LCOE). Every component is evaluated for its ability to minimize losses and enhance project returns.
The Balance of System (BOS) encompasses all components of a photovoltaic system beyond the solar modules, including inverters, mounting structures, transformers, switchgear, earthing, and cables. These elements are essential for converting DC power to AC, ensuring operational safety, optimizing energy yield, and maintaining long-term system reliability.
“C&amp;I customers are increasingly adopting open access solar solutions. We have supplied over 40 GW of switchgears across open-access, rooftop solar, and utility-scale projects,” said Suresh R, Senior Manager, <a href="https://www.lk-ea.com/" target="_blank" rel="noopener">Lauritz Knudsen Electrical &amp; Automation</a>.
Depending on project design and scale, BoS components can account for roughly 20–30% of project cost, making them a critical determinant of overall return on investment. Improper sizing or poor-quality BoS design can result in transmission losses and reduced delivered energy.
“When selecting switchgear, transformers, and other equipment, the design must align with the specific project size, which varies from customer to customer. Solar infrastructure cannot be approached with a copy-and-paste methodology; each project requires customized engineering based on inverter output, system capacity, and grid requirements. Appropriate BoS selection has a direct impact on efficiency, reliability, and long-term financial performance,” Suresh added.
Rise of Energy Storage 
As renewable energy adoption accelerates across India, battery energy storage systems (BESS) are emerging as enablers. What began as a complementary technology to solar and wind is fast evolving into a strategic asset for businesses seeking enhanced energy reliability, peak load management, and long-term cost optimization.
Makahaniya said, “Some states have already introduced or drafted mandates requiring storage integration. Storage currently adds approximately ₹2 (~$0.022)/kWh to ₹2.5 (~$0.027)/kWh above solar tariffs, which may limit its attractiveness without policy mandates. However, storage becomes viable in specific scenarios such as for data centers requiring round-the-clock renewable power, high-tariff consumers like hotels and hospitals, or as a replacement for expensive diesel generation.”
Overall, clean power purchase is no longer driven solely by environmental considerations. It is a strategic financial decision that enables businesses to reduce electricity costs, manage long-term risk, and move toward sustainability goals.
To truly optimize savings, companies must carefully select the right procurement model, ensure sound technical design, especially for BoS components, and evaluate the role of storage based on policy and operational needs.
On the changing face of BoS for solar plus BESS, Suresh noted that the voltage system used in residential rooftop installations is 15 volts, whereas the ground-mount system currently operates at 800 volts. And with BESS, there are other components besides LV panels, medium-voltage panels, transformers, and cables. The additional components are an isolator panel, which will be included in this system. Also, there will be a power conversion system (PCS), a battery management system, and an energy management system.
“For solar with BESS, there are both AC and DC couplings. Most go with AC coupling, but DC coupling is the future. In solar-plus-BESS, the AC part of the transformer is connected to the isolator panel, then to the PCS system, and finally to the BESS containers. When we use a DC coupling system, the DC generation can be fed directly to the isolation panel and then to the BESS. These are the additional components that come with BoS,” Suresh added.
Savings Drive Growth of BESS
Regarding the loss of savings owing to delays in approvals for open access projects, Makahaniya said, “If a company is planning a 1 MW solar project, the typical savings they will be realizing compared to the grid tariff is around ₹3 (~$0.033)/kWh. Considering solar energy generation of 1.5 million units annually, the annual savings will be around ₹4.5 million (~$49,686). If the adoption is delayed by six months, the customer loses nearly ₹2.4 million (~$26,499) in savings, which is far greater than the cost savings in case of a reduction in module and other component prices.”
Commenting on the savings for solar plus BESS, he said, “Take the case of the cement industry, automobile industry, or data centers, which run 24&#215;7, they pay ₹15 (~$0.16)/kWh-₹16 (~$0.17)/kWh to procure power. If they use solar plus BESS as an entire replacement for a commercial unit, it is definitely viable. The cost of solar is around ₹3 (~$0.033)/kWh to ₹4 (~$0.044)/kWh, and adding another ₹2 (~$0.022)/kWh for BESS saves around ₹10 (~$0.11)/kWh, which is a big number. This explains the growing popularity of solar plus BESS among commercial consumers.”
Another aspect of BESS is the replacement of diesel generator (DG) sets. Traditionally used for backup power during outages or peak demand, DGs incur high operating costs. In contrast, BESS charging from renewable energy or the grid can significantly lower backup power costs.
Makahaniya noted, “When you generate power through DG sets, it costs ₹18 (~$0.19)-₹24 (~$0.27)/kWh. So rather than doing that, consumers can deploy BESS, which is nearly ₹8 (~$0.088)/kWh cheaper than DG sets, which is a big saving.”
“BESS is completely viable if power cuts are very common. If the power cut happens once a month, then the capital cost is too high, and you don’t need to go for it. So, these are the factors that should be looked into before replacing DG sets with BESS,” he added.
At Mercom India’s <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2026-coimbatore" target="_blank" rel="noopener">C&amp;I Clean Energy Meet</a> in Coimbatore, experts highlighted that rising electricity tariffs, evolving regulations, and higher savings are making renewable energy a strategic choice for C&amp;I consumers.
The main takeaway was the growing demand for open access and BESS as viable alternatives to rooftop solar for C&amp;I consumers, especially in Tamil Nadu.
Industry experts noted that while storage may not yet deliver immediate returns, it is steadily becoming integral to the energy landscape, driven primarily by the need for grid stability, savings, and greater renewable integration.
For certain segments, particularly high-tariff consumers and diesel-dependent users, BESS is already offering a clear economic advantage. As solar open access expands, storage is fast changing from a future consideration to a necessity in the C&amp;I energy mix.
The next Mercom India C&amp;I Clean Energy Meet event will be <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2026-bhopal" target="_blank" rel="noopener">held</a> in Bhopal on March 13, 2026.

Solar and Battery Storage Lead C&I Shift Toward Clean Power Procurement

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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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