Frequently Asked Questions

The Ministry of Power lowered the minimum load threshold for sourcing renewable power from 1 MW down to 100 kW (with no lower limit for captive users). This allows MSMEs, hotels, and hospitals to bypass high DISCOM tariffs. However, execution varies by state, and some local regulators still tie this to specific voltage connection limits (like 11kV or above).

To legally qualify for Group Captive status and completely avoid the Cross-Subsidy Surcharge (saving over ₹2 per unit), you must strictly follow the Electricity Rules, 2005:

1. Equity: Captive consumers must hold at least 26% equity shareholding in the generating plant.

2. Consumption: The group must collectively consume at least 51% of the total energy generated annually.

If your facility drops below these numbers due to shutdowns, the DISCOM will retrospectively apply full surcharges to your entire year’s consumption.

The Approved List of Models and Manufacturers (ALMM) mandate requires all domestic open-access solar projects to source modules exclusively from government-approved local manufacturers. While this ensures supply chain safety, it limits cheap imports. Your developer must ensure ALMM compliance to avoid grid connectivity delays or rejection from state agencies.

The real cost of your power at the factory meter is much more than the base PPA price. It is calculated as:

• Landed Cost = Base PPA Rate + Transmission Charges + Wheeling Charges + State SLDC Operating Charges + Grid Losses + Surcharges (if using third-party instead of captive).

Always evaluate this total sum against your current utility time-of-day tariff to map out your exact ROI.

Because the grid must stay balanced, developers must forecast exactly how much power they will inject every 15 minutes. If your actual consumption or generation deviates heavily from that schedule, the State Load Despatch Centre (SLDC) applies Deviation Settlement Mechanism (DSM) penalties. Modern systems mitigate this by pairing solar with wind or battery storage to smooth out supply drops.

If your offsite solar plant goes offline unexpectedly due to a breakdown, your local DISCOM steps in to supply power so your factory doesn’t stop. For this safety net, utilities charge a massive premium called a Standby Charge (up to 25% over standard rates). Many progressive states now completely waive this fee if you provide at least one day’s advance notice before the Day-Ahead Market closes.

Energy banking lets you store excess daytime solar power in the grid for later use. However, regulations have tightened: most states have moved from an annual banking cycle to a monthly banking cycle. Any excess green energy left unutilized at the end of the month cannot be carried forward; it either lapses or is bought back by the DISCOM at a rock-bottom rate.

As solar capacity crowds industrial grids, congestion is a major bottleneck. Forward-looking state policies now mandate that if a new captive plant is built to generate well over the consumer’s standard Contract Demand, the user must integrate a Battery Energy Storage System (BESS) to absorb daytime peaks and prevent local substation overloading.

• Intrastate: The solar farm and your factory are in the same state. You are fully subject to local state-level wheeling charges, local banking restrictions, and state utility approvals.
• Interstate (ISTS): Your factory is in an industrial hub (like Haryana or Maharashtra), but you buy power from a mega-solar park in a high-irradiance zone like Rajasthan. Sourcing across state lines lets you tap into cheaper land and massive solar advantages while taking advantage of national ISTS transmission charge waivers.