What is Open Access Solar? Your No-Hype Guide to Cost, Models, and Implementation
- Posted by Infisol Energy
- February 11, 2026
Let’s be honest. If you’re a business owner or energy manager in India, your electricity bill is more than just a line item. It’s a growing pain point, a volatile cost center, and a barrier to those ambitious sustainability goals you’ve set. You’ve likely heard of solar, but maybe your factory roof isn’t big enough, or the capital investment seems daunting.
This is where Open Access Solar comes in. It’s a game-changing model that allows you to buy solar power directly from an off-site plant, delivered straight to your meter through the existing grid. Think of it like subscribing to a clean, cost-effective power service without needing to build or own the power plant yourself.
And it’s not a niche concept anymore. The market is accelerating because the financial logic is becoming undeniable for businesses seeking control over their energy costs.
So, let’s cut through the jargon. We’re going to walk through what open access solar really is, how it can benefit your business, and the practical steps to make it happen.
The Open Access Blueprint: How It Actually Works
At its core, open access is about choice and competition. The Electricity Act of 2003 first enabled it, and subsequent regulations have streamlined it. This allows eligible consumers to procure power from a source other than their local electricity distributor, known as the DISCOM.
Here’s the simple breakdown of the process:
- The Players: You (the consumer), an Independent Power Producer (developer), your State Load Dispatch Centre (SLDC), and the local DISCOM.
- The Contract: You sign a long-term Power Purchase Agreement (PPA) with a solar developer.
- The Infrastructure: The developer builds a solar plant, often a large-scale setup in a high-sunlight area.
- The Flow: The clean energy is fed into the state grid, and you draw an equivalent amount of power at your facility. Sophisticated energy accounting tracks every unit.
- The Payment: You pay the developer for the solar power at your agreed PPA rate, plus certain regulated charges for using the grid.
The beauty is in its simplicity. You get a dedicated source of green power without the operational headaches of owning a plant on your premises.
Your Two Main Paths: Choosing Between Captive and Third-Party Models
The Ownership Route: Captive & Group Captive Models
This model is for businesses seeking maximum long-term value and control. Here, you or a group of companies own a significant stake in the solar plant, typically at least 26% equity.- How it Works: You invest capital for your equity share. A developer usually sets up the project, manages construction, and operates the plant.
- The Big Financial Advantage: Captive projects are often exempt from key charges like the Cross-Subsidy Surcharge (CSS). This exemption is a major driver of their superior long-term savings.
- Who It’s For: Companies with capital to invest, a stable, long-term outlook, and a desire to build a tangible green energy asset on their balance sheet.
The Subscription Route: Third-Party PPA Model
This is the “plug-and-play” model of open access. You buy solar power from a developer’s plant with zero upfront investment.- How it Works: A developer owns, operates, and maintains the plant. You simply enter a long-term PPA to purchase the electricity it generates at a fixed, agreed-upon tariff.
- The Core Benefit: It’s hassle-free. You avoid capital expenditure, construction risks, and maintenance responsibilities, while still locking in solar savings.
- Who It’s For: Businesses that want immediate cost savings and green credentials without any ownership complexity.
| Decision Factor | Captive/Group Captive Model | Third-Party PPA Model |
| Upfront Investment | Required (for equity stake) | Zero investment |
| Long-Term Savings | Typically higher (due to charge exemptions) | Good, but includes all standard charges |
| Operational Control | High (shared ownership) | None (developer handles everything) |
| Best For | Strategic asset building, maximum savings | Simplicity, quick adoption, OPEX model |
The Real Cost Breakdown: More Than Just a PPA Rate
When evaluating offers, looking only at the PPA rate is a common mistake. Your final “landed cost” per unit includes several components:
- Transmission & Wheeling Charges: Fees for using the state or national grid network to “wheel” power from the plant to you.
- Cross-Subsidy Surcharge (CSS): A charge that may be levied, but is often waived for captive models.
- Banking Charges: If your state allows it, you can “bank” unused solar power in the grid for later use, usually for a small fee.
- SLDC Fees: Charges for the coordination and scheduling by the State Load Dispatch Centre.
Despite these charges, the landed cost of open access solar is typically 20-40% lower than prevailing industrial grid tariffs. This offers significant and predictable savings over a 10-20 year period.
Navigating the Landscape: Why State Policies Matter
- States like Maharashtra, Karnataka, and Rajasthan have been clear leaders, with well-defined policies and infrastructure that support open access projects.
- Gujarat and Tamil Nadu also have strong markets, driven by high grid tariffs and improving regulatory frameworks.
Your Roadmap: A Step-by-Step Implementation Guide
- Feasibility and Eligibility Check: First, confirm your contracted demand meets the threshold, which is typically at least 100 kW for open access. A detailed analysis of your past electricity bills is the best starting point.
- Model Selection and Partner Identification: Decide which model fits your financial and operational style. Then, choose an experienced developer with a strong track record in your state. They will be your guide through the regulatory landscape.
- Regulatory Application: Your developer will spearhead the application process, seeking approval from the State Load Dispatch Centre (SLDC). This step requires precise documentation.
- Agreements and Financing: Finalize the Power Purchase Agreement (PPA). For captive models, shareholder agreements are also settled. Project financing is secured at this stage.
- Construction, Commissioning, and Operation: The plant is built and connected to the grid. Once commissioned, you start drawing solar power, with monthly settlements based on the scheduled energy.
Making the Decision: Is Open Access Right for You?
Open access solar has moved from an alternative concept to a mainstream business decision for India’s industries. It’s a powerful tool to combat rising grid tariffs, achieve substantial cost savings, and make decisive progress on sustainability pledges.
The journey requires careful navigation. You need to understand the models, the real costs, and the state-specific landscape. But the destination is clear: a more resilient, cost-controlled, and sustainable energy future for your business.
The first step is an informed conversation. Start by pulling your last 12 months of electricity bills. Look at your sanctioned load and average tariff. With that data in hand, the potential for open access solar moves from a theoretical idea to a quantifiable opportunity for your business.
The performance ratio shows how efficiently a solar plant converts available sunlight into electricity. A stable performance ratio during a low-irradiation year usually indicates normal operation. Falling performance ratio points toward design or operational issues rather than weather alone.