Solar Panel

Introduction

Over the past few years, India’s energy scenario has gone through a significant shift. Industry, particularly commercial and industrial sectors, are increasingly moving to clean energy options. One of these options that’s picking up pace is solar open access. It enables consumers to procure electricity directly from solar developers via the transmission and distribution network. This option not only assists in cutting down energy bills, but it also assists in achieving sustainability.

In Calendar Year 2024 (CY 2024), several states in India have emerged as top performers in enabling solar open access. These states have taken bold policy steps, improved infrastructure, and actively supported private-sector participation. In this post, we’ll explore the leading states and the reasons behind their success.

What is Solar Open Access?

Let’s first understand what solar open access is all about before jumping into the state-wise rankings. Under this model, bulk power consumers (usually using more than 1 MW of electricity) are able to buy power from standalone solar power producers instead of depending only on local electricity boards.

This model is possible under the regulations of Open Access Regulations formulated by State Electricity Regulatory Commissions (SERCs). It fosters competition, enhances efficiency, and minimizes the aggregate carbon footprint of energy consumption.

Open access is particularly appealing to business sectors such as manufacturing, IT, hospitality, and retail, which are high electricity consumers and would like to save on costs and reduce their carbon footprint.

Why It Matters in CY 2024

CY 2024 has seen record growth in the solar sector. Rising electricity prices, improved solar panel efficiency, and pressure to meet ESG (Environmental, Social, Governance) goals are pushing more companies toward solar open access. States that offer smooth approvals, low wheeling charges, and stable policies are attracting the most investment and installations.

Now let’s take a look at the top states that are leading the way in this space.

Top 5 States for Solar Open Access in CY 2024

1. Karnataka: The Undisputed Leader

Karnataka has consistently ranked as one of the most favourable states for solar open access. In CY 2024, it continues to lead due to several key factors:

  • Supportive Policies: The state has minimal cross-subsidy surcharges and transparent open access regulations.
  • Strong Infrastructure: Karnataka’s power infrastructure is advanced and well-managed, allowing seamless transmission.
  • High Demand from Industry: With major tech hubs like Bengaluru and a large manufacturing base, the demand for reliable solar energy is strong.

Moreover, Karnataka has allowed group captive and third-party open access models, making it easier for companies to partner with solar developers.

2. Maharashtra: Rising with Industrial Demand

Maharashtra has made major progress in CY 2024. With its large industrial base and strong consumer demand, it has become a hotspot for solar open access.

  • Policy Improvements: Recent amendments to open access regulations have improved clarity and reduced delays.
  • High Potential: The state’s demand for electricity is one of the highest in the country, making solar a natural fit.
  • Urban Adoption: Cities like Mumbai, Pune, and Nagpur are seeing growing adoption of rooftop and open access solar.

Despite having slightly higher surcharges compared to Karnataka, the proactive approach by Maharashtra’s regulators has boosted investor confidence.

3. Gujarat: Policy-Driven Growth

Gujarat continues to show strong performance due to its clear policy framework and long-term renewable energy vision.

  • Robust Solar Ecosystem: Gujarat was one of the first movers in solar adoption and continues to offer incentives.
  • Efficient Approvals: The Gujarat Energy Development Agency (GEDA) and the state load dispatch centre (SLDC) have streamlined the application process.
  • Competitive Tariffs: Developers find Gujarat attractive due to lower land costs and strong solar radiation.

As a result, the number of solar open access projects in Gujarat has steadily increased in CY 2024, with more industries joining the movement.

4. Tamil Nadu: Balancing Growth and Regulation

Tamil Nadu has long been a leader in renewable energy. In CY 2024, it remains a top player in solar open access, despite regulatory complexities.

  • Large Installed Capacity: The state has one of the highest installed capacities for renewable energy in India.
  • Industrial Hub: Coimbatore, Chennai, and Madurai drive high energy demand, making solar open access an attractive choice.
  • Regulatory Challenges: While the process is slightly more complex compared to other states, recent policy changes aim to ease this.

Tamil Nadu’s government is actively working to reduce red tape and support more solar developers.

5. Rajasthan: Harnessing the Sun’s Power

Rajasthan’s natural advantage in solar energy makes it a key player in CY 2024. With high solar insolation and land availability, the state has seen major solar installations.

  • Favourable Solar Potential: Rajasthan receives among the highest solar radiation in India.
  • Infrastructure Growth: Solar parks and transmission upgrades have created a solid base for open access.
  • Policy Shifts: The state has revised its policies to favour group captive and third-party models.

Despite challenges like remote connectivity in some areas, Rajasthan remains a key state for solar open access in 2024.

What Sets These States Apart?

Several factors determine whether a state becomes favourable for solar open access:

  • Ease of Approval: States with single-window clearance systems tend to perform better.
  • Surcharge Structures: Low or exempted wheeling and cross-subsidy charges reduce project costs.
  • Grid Infrastructure: A strong and stable grid is necessary for smooth transmission of solar power.
  • Supportive Policies: Clear and long-term regulations encourage developer interest.

These leading states have managed to strike a balance between commercial interests and grid management.

What Lies Ahead for Solar Open Access?

Looking forward, solar open access will continue to expand. With upcoming changes in power trading laws, increasing corporate sustainability goals, and central government push through the Green Open Access Rules, even more states are likely to jump on board.

If you’re a business considering open access solar, now is a good time to explore your options. Work with developers who understand the regulatory landscape, choose states with streamlined processes, and plan your project with long-term goals in mind.

Conclusion

CY 2024 is a transition year for India’s renewable energy story. With more companies embracing green power, solar open access is emerging as a game-changer. States such as Karnataka, Maharashtra, Gujarat, Tamil Nadu, and Rajasthan are setting the pace with aggressive policies and strong infrastructure.

Whether you’re an industrial consumer, energy consultant, or policymaker, knowing these regional variations will inform your decision-making. The future of solar open access in India is bright—particularly if more states follow the leaders’ lead.

Frequently Asked Questions (FAQs)

1. What is solar open access?

Solar open access allows large electricity consumers, such as industries and businesses, to purchase solar power directly from solar power producers instead of relying on traditional power distribution companies (DISCOMs). This model helps businesses reduce electricity costs and transition to renewable energy sources.

2. Why is solar open access growing in India?

The rapid growth of solar open access in India is driven by:
Rising electricity tariffs for commercial and industrial (C&I) consumers.
Favorable government policies and incentives.
The need for businesses to adopt cost-effective and sustainable energy solutions.
Technological advancements that have made solar power more affordable and efficient.

3. Which states led solar open access installations in CY 2024?

The top five states for solar open access installations in CY 2024 were:
Maharashtra – 18% of total installations.
Rajasthan – 15% of total installations.
Karnataka – 14% of total installations.
Gujarat – 13% of total installations.
Uttar Pradesh – 12% of total installations.
Together, these states accounted for nearly 72% of the total solar open access capacity added in 2024.

4. What are the key benefits of solar open access for businesses?

Businesses opting for solar open access enjoy several advantages:
Cost savings – Lower electricity bills compared to traditional grid power.
Sustainability – Helps meet corporate renewable energy goals.
Energy independence – Reduces reliance on DISCOMs.
Government incentives – Many states offer policies supporting solar open access adoption.

5. What challenges does solar open access face in India?

Despite its growth, solar open access faces challenges such as:
Transmission infrastructure limitations in certain states.
Regulatory uncertainties that vary from state to state.
Resistance from traditional power distribution companies (DISCOMs) losing high-paying customers.
Land acquisition issues for large-scale solar projects.

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