Top States for Solar Open Access in CY 2024
India’s solar energy sector has witnessed remarkable growth, particularly in the domain of solar open access. In Calendar Year (CY) 2024, the nation added an impressive 6.9 gigawatts (GW) of solar open access capacity, marking a 77% increase from the previous year. This surge underscores the escalating demand for renewable energy solutions, especially among commercial and industrial (C&I) consumers seeking cost-effective and sustainable power alternatives.
Understanding Solar Open Access
Solar open access allows large power consumers, such as industries and commercial establishments, to procure electricity directly from solar power producers. This arrangement bypasses the traditional distribution channels, enabling consumers to benefit from reduced electricity costs and contribute to environmental sustainability. The model has gained significant traction in India, driven by favorable policies and the economic advantages of solar energy.
Leading States in Solar Open Access Installations
In 2024, five states—Maharashtra, Rajasthan, Karnataka, Gujarat, and Uttar Pradesh—emerged as frontrunners in solar open access installations, collectively accounting for 72% of the total capacity added during the year. Each of these states leveraged unique policies and market dynamics to foster substantial growth in this sector.
Maharashtra: Pioneering Solar Open Access Growth
Maharashtra led the nation by contributing 18% of the total solar open access installations in 2024, reflecting an 86% increase from the previous year. Approximately 66% of the state’s large-scale solar projects were implemented under the open access model. The state’s decision to raise electricity tariffs for C&I consumers in FY25 further incentivized businesses to adopt solar open access, offering significant cost savings and aiding in achieving green energy objectives.
Rajasthan: Rapid Expansion Through Strategic Policies
Rajasthan secured the second position with 15% of the nation’s solar open access installations, experiencing a remarkable 291% growth compared to 2023. The state’s introduction of an investment promotion program and an integrated clean energy policy in the latter part of 2024 provided substantial incentives, propelling the adoption of solar open access and other renewable energy projects.
Karnataka: Consistent Performer Amidst Infrastructure Challenges
Karnataka followed closely with a 14% share in new solar open access capacity additions, marking a 6% year-over-year increase. Notably, solar open access constituted 60% of the state’s large-scale solar projects for the year. Despite facing transmission infrastructure constraints, the state’s distribution companies (DISCOMs) have streamlined approval processes, and the supportive regulatory framework continues to bolster the sector’s growth.
Gujarat: Sustaining Growth Through Hybrid Policies
Gujarat accounted for 13% of the total capacity additions in 2024, experiencing a slight decline of 16% from the previous year. Nevertheless, 15% of the state’s large-scale solar installations adopted the open access model. Gujarat’s wind-solar hybrid power policy, offering various incentives and waivers, coupled with prompt project approvals by DISCOMs, is expected to continue supporting capacity additions in the future.
Uttar Pradesh: Emerging Leader with Exponential Growth
Uttar Pradesh made significant strides by contributing 12% of the total solar open access capacity, marking an extraordinary 446% year-over-year growth. A substantial 85% of the state’s large-scale solar projects commissioned in 2024 were under the open access model. The state’s attractive government policies and expedited licensing approvals have been instrumental in this surge, meeting the growing demand from C&I consumers and offering competitive power purchase agreement prices compared to traditional electricity tariffs.
Factors Driving the Surge in Solar Open Access
Several key factors have contributed to the robust growth of solar open access installations across these leading states:
- Economic Incentives: The escalating cost of conventional electricity has prompted C&I consumers to seek more affordable alternatives. Solar open access offers significant cost savings, making it an attractive option for businesses aiming to reduce operational expenses.
- Supportive Policies and Regulations: State governments have implemented favorable policies, including investment promotion programs, clean energy initiatives, and hybrid power policies, to encourage the adoption of solar open access. These measures provide financial incentives and streamline approval processes, facilitating easier project implementation.
- Environmental Commitments: With increasing awareness of environmental sustainability, many organizations are committed to reducing their carbon footprint. Procuring renewable energy through solar open access aligns with corporate social responsibility goals and enhances brand reputation.
- Technological Advancements: The rapid advancement in solar technology has led to increased efficiency and reduced costs of solar panels and related equipment. This technological progress has made solar power more accessible and economically viable for a broader range of consumers.
Future Outlook for Solar Open Access in India
The trajectory of solar open access in India indicates a promising future. The cumulative installed capacity reached 20.2 GW by the end of 2024, with a robust pipeline of over 25.7 GW under development and pre-construction. States like Karnataka, Maharashtra, Rajasthan, Tamil Nadu, and Gujarat are expected to continue leading this growth, supported by business-friendly policies, land availability, and robust infrastructure.
As more C&I consumers recognize the economic and environmental benefits of solar open access, the demand is anticipated to rise further. Continued government support, technological innovations, and the decreasing cost of solar installations will likely drive the sector’s expansion, contributing significantly to India’s renewable energy targets and sustainability commitments.
Conclusion
The remarkable growth in solar open access installations across India’s top states in 2024 underscores the nation’s commitment to renewable energy and the effectiveness of supportive policies. As businesses increasingly turn to solar open access for cost savings and sustainability, this sector is poised for continued expansion, playing a pivotal role in India’s energy landscape and environmental stewardship.
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 advantag
- 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.
