Solar Open Access Becomes Main Driver of Clean Power Growth for Indian Businesses

India’s commercial and industrial energy market is rapidly moving toward solar open access projects as a key way for businesses to secure clean electricity and reduce power costs, industry leaders said in a recent interview with Mercom India. Rising grid prices, corporate sustainability goals, and demand for predictable long-term energy costs are pushing companies to shift away from smaller rooftop systems toward larger offsite solar arrangements that supply power directly.

In a conversation with Mercom India, Nishant Sood, Managing Director (India) of Candi Solar, explained that distributed solar is increasingly focused on green open access capacity rather than rooftop alone, as physical space limits and scaling needs drive the transition. Candi’s pipeline in India is now weighted heavily toward open access projects, with companies planning to expand this segment to about 60–75 % of new installations over the next two years.

The growth trend is being driven by commercial and industrial consumers who often start with rooftop solar but turn to open access once onsite space fills up, allowing them to significantly increase renewable energy procurement and lock in long-term power pricing. Many buyers are now motivated by economics and reliability as much as by regulatory obligations or environmental commitments, reflecting a broader shift in how businesses view energy supply.

Industry participants also noted that financing structures and risk allocation models are evolving. Performance-linked ownership models are attracting customers by combining the benefits of owning solar assets (such as tax incentives) with the assurance that developers take on performance and operational risks. This contrasts with traditional CAPEX-heavy models where customers retain much of the risk even after installation.

While interest in battery energy storage systems (BESS) is growing as firms look to enhance grid flexibility and manage peak power demand, widespread adoption in India remains in its early stages due to cost pressures. However, declining battery prices and technological improvements are expected to support increased storage deployment over time.

Regulatory factors such as the Approved List of Models and Manufacturers (ALMM) have influenced equipment procurement and project timelines, creating some uncertainty in module availability and pricing. Developers continue to navigate these challenges while helping customers understand potential impacts on project delivery and costs.

On the ground, execution hurdles like securing grid connections and acquiring land for open access projects remain obstacles. However, these challenges also present opportunities for companies that can offer strong capabilities in managing grid integration and project execution, which are becoming key differentiators in India’s expanding distributed solar market.