Maharashtra and Tamil Nadu Witness Decline in Solar Open Access Installations

Maharashtra and Tamil Nadu Witness Decline in Solar Open Access Installations

June 11, 2026

India’s solar open access market continued its growth trajectory in the first quarter of 2026, with new installations reaching approximately 2.7 GW. The strong performance was supported by favorable policies, increasing corporate demand for renewable energy, and improved project execution across several states. However, industry growth could have been even stronger if not for regulatory adjustments, grid limitations, and supply chain constraints in some of the country’s major markets.

Among the states experiencing a slowdown, Maharashtra and Tamil Nadu recorded a notable decline in solar open access installations during the quarter. In Maharashtra, revisions to energy banking regulations and the implementation of time-of-day tariff structures have altered project economics for commercial and industrial consumers. These changes have encouraged businesses to reassess their renewable energy procurement strategies, leading to slower project adoption despite continued interest in reducing electricity costs and meeting sustainability commitments.

Tamil Nadu also witnessed a decrease in new open access solar capacity additions, reflecting ongoing challenges related to project approvals, infrastructure readiness, and regulatory complexities. Despite these hurdles, the state remains an important renewable energy market, with businesses continuing to explore solar solutions as a means of securing long-term energy savings and improving environmental performance. Industry participants expect demand to remain strong as companies increasingly prioritize clean energy procurement.

Looking ahead, the broader outlook for India’s solar open access segment remains positive. Rising electricity costs, corporate sustainability targets, and supportive renewable energy policies are expected to drive future growth. However, stakeholders emphasize that regulatory stability, improved transmission infrastructure, and streamlined approval processes will be essential to unlocking the sector’s full potential and ensuring continued expansion across key industrial markets.