Landed Costs for Solar Open-Access Projects Rise in Most States Due to Higher PPA Tariffs

Landed Costs for Solar Open-Access Projects Rise in Most States Due to Higher PPA Tariffs

September 17, 2025

New Delhi — The price of third-party solar open-access power for high-tension industrial consumers in India has increased considerably in the second quarter (Q2) of 2025, the sources said. Underlining the trend, the report highlights that out of 15 states studied, the “landed cost” — inclusive of power-purchase agreement tariffs coupled with wheeling charges, cross-subsidy surcharges, and other levies — increased in 11 states over the previous quarter, largely driven by an uptick in PPA tariffs. On the contrary, landed costs have declined in two states, namely Gujarat and Punjab, owing to a reduction in open-access surcharges.

The new data comes as India added about 2.7 GW of solar open-access capacity in Q2 2025 — an over 143% surge quarter-on-quarter and over 60% year-on-year Despite this growth in capacity, the economic benefit for consumers using third-party open-access power has narrowed in many states, due to a rise in tariffs.The reported landed costs varied significantly across states in the period, ranging from as low as around ₹5/kWh to ₹8/kWh nearly depending on the combination of state-level charges. While states like Maharashtra were among the highest, states like Chhattisgarh, Odisha, and Uttar Pradesh recorded comparatively lower landed costs.

The rising landed costs are attributed not only to higher PPA tariffs — a result, in part, of the newly stricter module-quality regulations and increased costs for compliant solar modules — but also to state-wise variations in surcharges and wheeling charges.) In those states where open-access charges and surcharges have fallen, solar open-access continues to offer competitive energy costs, the report notes.The findings indicate that, though capacity additions remain strong, cost dynamics are turning increasingly complex, and it becomes imperative for industrial and commercial consumers to carefully evaluate PPA tariffs and state-specific charges before opting for open-access solar power.