Telangana's Solar Open-Access Ambitions Stall Amid Regulatory Uncertainty

Telangana's Solar Open-Access Ambitions Stall Amid Regulatory Uncertainty

September 17, 2025

Hyderabad, September 17, 2025 — Despite rising interest from industrial and commercial power consumers, uptake of solar open-access projects in Telangana remains weak, with lingering policy ambiguity continuing to deter investors and buyers, industry stakeholders said at a recent renewable-energy meet.

Developers noted that although captive solar projects could deliver savings of up to ₹5/kWh compared with grid power, third-party open-access deals offer only modest reductions — around ₹1/kWh— making them less attractive for many potential users.According to Enerparc Energy, its Vice President Yogish HN says Telangana has added a mere 16 MW of open-access capacity in the last two years, compared with 500-600 MW that neighbouring Andhra Pradesh has added in this period. Developers contend the slow pace reflects delayed approvals, high cross-subsidy fees, elevated banking charges, and a lack of long-term clarity on the state’s clean-energy policy.

Further complications arise for captive and group-captive models, as utilities seemingly are reluctant to sanction open-access applications in a timely manner-a factor that is pushing many consumers to either stick with rooftop solar or rely on renewable-energy certificates instead. Participants at the meet urged that for solar open access to gain ground in Telangana, the regulatory framework must be streamlined — specifically by reducing banking charges, clarifying cross-subsidy surcharges and expediting approval processes. Until then, the state’s clean-energy potential risks remaining largely untapped.