Solar Open Access in India: Complete Guide for Businesses

Introduction

Large industrial businesses often require more electricity than their rooftop solar panels can generate. Even with full utilisation of available rooftop space, rooftop solar may meet only part of their energy requirements.  

Solar open access allows businesses to obtain energy from off-site solar projects through the existing grid.  This approach helps reduce energy costs and carbon emissions without the need for a large on-site solar installation.

What Is Solar Open Access?

Solar open access operates within the framework of the Electricity Act, 2003, which allows eligible commercial and industrial consumers to procure electricity from solar power generators of their choice instead of their local DISCOM (Distribution Company).

This system uses large, off-site solar plants that feed power into the state or central grid. Consumers can draw an equivalent amount of electricity at their facilities, with transactions monitored through grid accounting. This approach supports energy independence and sustainable energy development.  

In simple terms,  a factory can purchase solar power from a solar project located far from its facility, using existing infrastructure for efficient delivery.

How Does Solar Open Access Work in India?

The process generally involves the following steps:

Step 1: Check Eligibility

Businesses first need to check whether they meet the eligibility requirements for solar open access. In many cases, the minimum contracted demand is 100 kW, although the exact requirement can vary from one state to another.

Step 2: Sign a Power Purchase Agreement (PPA)

The business enters into a Power Purchase Agreement (PPA) with a solar company. The agreement outlines the electricity tariff, contract terms, duration, and other commercial conditions, which can extend over several years. 

Also Read: Solar EPC Company Guide: How to Choose the Right Partner 

Step 3: Solar Power Is Generated

The solar company generates electricity at an off-site solar plant and supplies the power to the transmission or distribution grid.

Step 4: Electricity Reaches the Business

The business continues to receive electricity at its facility through the existing grid. The relevant authorities account for the energy supplied through the solar open access arrangement.

Step 5: Pay the Solar Tariff and Applicable Charges

The business pays the agreed solar power tariff along with applicable transmission, wheeling, cross-subsidy and other charges. The overall cost can be more competitive than conventional grid electricity, depending on the business’s location, tariff structure and consumption profile.

Why Are Businesses Choosing Solar Open Access?

1. Cost Optimisation

High industrial electricity tariffs make power procurement expensive in many states. Solar open access can provide a more competitive rate when all charges are considered, leading to annual savings for high-consumption facilities. This approach supports long-term cost optimisation and financial sustainability.

2. No Rooftop Space Requirement 

Because generation occurs off-site, businesses do not need sufficient rooftop space to accommodate their entire solar capacity.

3. Potentially Lower Upfront Investment

Under certain third-party PPA or OPEX structures, businesses can access solar power without the upfront capital investment required to own and develop a full solar plant. The investment requirement depends on the chosen structure.

4. Renewable Energy Adoption

Open access can help businesses increase their use of renewable electricity and support broader sustainability and energy transition goals. India introduced the Green Energy Open Access Rules to promote generation, purchase and consumption of green energy.

Solar Open Access vs Rooftop Solar

Solar open access and rooftop solar provide businesses with different ways to adopt renewable energy.

With solar open access, electricity is generated at an off-site solar project and supplied through the grid. With rooftop solar, electricity is generated directly at the business’s premises.

Also Read: Why Should Modern Businesses Choose Commercial Solar Rooftop

The table below highlights the key differences between solar open access and rooftop solar:

Factor	Solar Open Access	Rooftop Solar
Generation	Off-site	On-site
Rooftop Requirement	No	Yes
Scalability	Suitable for larger requirements	Limited by available space
Ownership	Depends on structure	Usually owned or financed on-site
Grid use	Power delivered through the grid	Primarily on-site generation

Is Solar Open Access Right for Your Business?

Solar open access may be a suitable option for large industrial and commercial consumers with significant monthly electricity costs. The benefits, including cost savings and procurement flexibility, may outweigh any additional charges based on the project structure. This method allows businesses to effectively manage energy through the grid rather than relying solely on on-site solutions.

Also Read: Why Choosing the Right Industrial Solar Company Matters

For facilities with available rooftop space, combining rooftop solar for daytime electricity demand with open access for additional energy demand can be an effective approach. It enhances renewable energy usage while reducing dependence on a single energy source, promoting sustainability and cost savings.

Frequently Asked Questions