India Solar Open Access Market Growth Drivers: Key Policy Changes During Q3 2025

India Solar Open Access Market Growth Drivers: Key Policy Changes During Q3 2025

December 11, 2025

The solar open access market in India had considerable regulatory movement in the third quarter of 2025, with developments at both the national and state levels, as per the Q3 2025 Solar Open Access Market Report. India added 2.2 GW of solar open access capacity in Q3 2025 and thus achieved a cumulative installed base of 27.9 GW as at the end of September 2025. It brought the cumulative nine months’ addition to 6.1 GW, a 13 percent increase from the same period last year.

India’s Ministry of Power introduced a new Renewable Consumption Obligation target, stipulating that 43.33% of consumption should be fulfilled by renewables as of fiscal year 2030. To promote clean energy adoption among distribution licensee consumption, open access consumption, and captive consumption, it should be noted. The Central Electricity Regulatory Commission introduced orders on incorporating market coupling at the respective power exchanges to facilitate harmonized price determination. CERC relaxed restrictions on connecting via interstate transmission with special purpose vehicles and some sort of subsidiarity with solar and wind developer companies, with necessary documents on financial closure. A judgment from Appellate Tribunal for Electricity on related matters clarified that assets for transmission infrastructure created by the Central Transmission Utility would be recognized as a part of an interstate transmission system, even if it stays within the borders of a single state, eligible for cost-sharing as per existing provisions. At the state level, there have been efforts at various levels with varied impacts on open access economics. The Tamil Nadu Electricity Regulatory Commission adopted rules for green energy open access, which incorporate energy banking and have specific charging rates for C&I consumers. Although there’s an increase of 4% on transmission charges and an increase in the cross-subsidy surcharge on industrial and commercial consumers, there’s been a significant reduction in the additional surcharge, giving some respite to open access consumers. The new tariff order introduced by Chhattisgarh for 2025-26 incremented retail supply tariffs and imposed steep cross-subsidization surcharges on different voltage classes, as well as wheeling and transmission tariffs, potentially leading to an escalation of procurement costs for open access consumers, despite possible incentives against traditional supply sources.

Other major developments included Bihar’s new renewable energy policy with an intention to develop almost 24 GW of cumulative capacity by 2030, with enabling provisions for private sector participation and energy banking for large-scale open access procurement. Also, in Maharashtra, amendments were approved by regulators enabling a consumer to have either separate purchases of open access and rooftop solar net metering or a combination thereof, thus offering more flexibility on energy management. At the same time, Karnataka Electricity Regulatory Commission issued new deviation settlement regulations with an objective to improve grid security by aligning actual injection and consumption with scheduled ones. Nevertheless, regulatory clarification and developing regional tariffs, together with healthy C&I market sales volume, sustain open access as an attractive alternative for C&I customers wanting cost savings and switching to more renewable energy sources despite higher tariffs in some regions.