Home › Business ›Powering Industry’s Renewables Shift: Open Access and Storage Reshape C&I RE Procurement
Powering Industry’s Renewables Shift: Open Access and Storage Reshape C&I RE Procurement
As renewable adoption scales in the C&I sector, procurement models are evolving – open access is gaining ground, rooftop solar remains relevant for smaller loads, and BESS is emerging as key to managing variability, reducing costs, and improving reliability. Energetica India talks to RE developers to decode the shift in RE procurement strategies.
May 07, 2026. By Mrinmoy Dey
The Indian Commercial and Industrial (C&I) sector is not only crucial to the nation’s economic growth but also to its overall energy transition. As per India Energy Statistics 2025, the C&I sector accounts for about 50 percent of India’s total energy consumption. The sector’s energy demand is growing at a CAGR of about 10 percent.
The cumulative installed solar open access capacity in the C&I sector crossed 30 GW in December 2025, with demand particularly strong from energy-intensive sectors such as manufacturing, data centres, and IT services, which require scalable and reliable renewable procurement solutions.
As per Ministry of New and Renewable Energy (MNRE) data, in FY26, a total of approximately 15 GW of solar capacity, which is about 34 percent of overall capacity addition, has been added in the C&I sector. This includes 2 GW in rooftop solar. This is 150 percent YoY growth as the sector added 10 GW in FY25. The C&I sector, including captive, contributed to about 4.5 GW (about 75 percent) of the total wind capacity addition in FY26.
In the next five years, the share of renewables in C&I consumption is going to rise significantly. As per a projection by MNRE Secretary Santosh Kumar Sarangi, the renewable energy demand from the C&I segment is likely to ramp up in a range between 60-80 GW by 2030, driven by accelerating demand for renewable energy from the proliferation of data centres and expanding manufacturing operations.
Open Access Models Gaining Prominence
C&I consumers, large institutions, and residential complexes are increasingly adopting renewable energy, which offers greater cost efficiency as compared to grid tariffs. In recent times, solar open access is emerging as a scalable alternative to rooftop solar, especially for large consumers.
Affan Patel, Whole Time Director, KP Group, remarks, “C&I consumers are increasingly shifting from rooftop solar to open access renewable energy due to scalability, lower tariffs, and flexibility. Open access allows large energy buyers to source power from utility-scale solar or wind projects without being constrained by rooftop space, while also benefiting from long-term cost predictability. Regulatory support and improved transmission frameworks have further accelerated this shift.”
According to Akshay Hiranandani, CEO, Serentica Renewables, the shift from rooftop solar (RTS) to open access renewable energy among C&I consumers is not incidental; it reflects a deeper structural shift in how industries approach energy. “While rooftop solar served as an important starting point, its limitations in scale and consistency have become evident as industrial energy demand continues to grow. Factories do not operate on constrained capacity; they require reliable, large-scale power that rooftop installations alone cannot provide,” he says.
He further adds that open access addresses this gap by enabling access to utility-scale renewable energy through long-term arrangements that offer both cost efficiency and tariff predictability. “More importantly, it allows industries to align with evolving ESG commitments and global supply chain expectations, where the ability to demonstrate large-scale renewable adoption is becoming critical,” shares Hiranandani.
Jogendra Behera, Head, Policy, Regulatory & Non-Utility Markets, Apraava Energy, feels that many large C&I consumers now want not just partial solarisation, but a larger share of annual electricity consumption covered through renewable power, along with better long-term tariff visibility. “In addition, emerging procurement structures such as Virtual Power Purchase Agreements (VPPAs) and Contracts for Difference (CfDs) are gaining traction, particularly among large corporates and data centres. These instruments allow consumers to hedge power price volatility and meet sustainability targets without being constrained by physical delivery, thereby complementing open access procurement,” he elucidates.
Anil Bhat, Director – Business Development, Hexa Climate, remarks, “For any serious industrial consumer with a load of a few megawatts or more, rooftop simply cannot move the needle on energy costs or decarbonisation targets. Open access gives you scale, better tariffs, and the ability to source wind and hybrid power – not just daytime solar. That changes the equation entirely. For large C&I players with RE100 commitments or serious cost pressures, open access is no longer optional; it's the only lever that moves fast enough.”
Mrigesh Kejriwal, Head – Asset Management, Fourth Partner Energy, agrees, “For many organisations, this shift is also aligned with global sustainability commitments such as RE100, which mandates sourcing 100 percent of electricity from renewable energy. Open access projects, with their ability to deliver utility-scale power, are emerging as the most effective pathway to meet these ambitious targets.”
The Relevance of Rooftop Solar in the C&I Segment
However, rooftop solar remains relevant for consumers with adequate roof space, steady daytime load, and moderate demand, offering simple, on-site generation without open-access complexities – especially suited for commercial buildings, MSMEs, warehouses, and institutions, asserts Behera.
Akshat Jain, CEO, KLK Ventures, emphasises, “Rooftop solar remains preferred for businesses with available roof space, simpler internal energy management, and a desire for onsite energy security. It also continues to appeal where net metering policies are strong, or for organisations emphasising visible sustainability initiatives on their facilities.”
Kejriwal adds, “RTS continues to play a meaningful role, particularly for SMEs, hospitals, malls, and IT parks where rooftop space is available, and energy demand is moderate. RTS offers behind-the-meter savings, avoids transmission and wheeling charges, and can be deployed relatively quickly.”
Increasingly, the transition is not about replacement but progression, with many consumers adopting a hybrid approach – using rooftop for optimisation and open access for scale, states Hiranandani.
Captive vs Group Captive vs Third Party Open Access: The Preferred Procurement Model
There are mainly three procurement models for the C&I consumers to source renewable energy: captive, group captive and third party PPAs. Procurement models shape both project economics and regulatory exposure.
Kartikeya Narain Sharma, Co-founder and Chief Business Officer, Sunsure Energy, explains, “When a large-scale industry wants to adopt renewable energy at scale, they are faced by the classic business question – ‘build or buy?’ If they want to ‘build’ the RE project for themselves, this would require them to build a fully owned open access plant, including land acquisition, getting grid connectivity permissions and the construction and long-term operations of the project. This is called a ‘Captive’ project. This yields the lowest cost of power for the consumer but requires a deep commitment to the project and involves embracing the risks that come with such commitment. For e.g., the power banking scenario may completely change tomorrow, and the consumer may be left with excess project capacity with no takers. Or, the project may get stalled at the construction stage itself due to ROW issues, leading to massive delays and losses.”
He further shares that generally, businesses prefer to just ‘buy’ power rather than foot the bill for the massive CAPEX and operational intensity typical for large-scale power projects. “There are two options here – buy power from a completely unassociated project, which is called Third Party supply. Or, draw power from a project where the consumer qualifies as a Group Captive consumer.”
According to Sharma, the Group Captive Open Access model is the most popular for large-scale industries to shift to renewable energy. Under this model, the power consumer puts up a part of the project cost as equity investment and is exempt from the levy of cross-subsidy (CSS) and additional surcharge (AS) on the power drawn by the consumer from the power project. “Third party supply attracts CSS and AS. Typically, CSS and AS amount to INR 2 or more per unit of electricity. Hence, this is a significant saving for the end consumer and makes the group captive model a very attractive one.”
Talking about the model preference, Rear Admiral R Sreenivas, VSM, (Retd.), Chief Executive Officer, Bondada Group, remarks, “The choice of model depends on a company’s risk appetite, capital allocation strategy, power demand consistency, and regulatory landscape in the operating state. Currently, group captive structures are gaining significant traction as they strike a balance between cost efficiency and shared investment, especially for mid-sized consumers who may not independently meet captive thresholds.”
Kejriwal opines, “Group captive models offer a more balanced approach by optimising both investment and risk. Their attractiveness has increased following regulatory changes that allow collective 51 percent consumption rather than strict proportional consumption by individual users. This has broadened access for diverse consumer groups, including SMEs, and is expected to accelerate adoption.”
According to Bhat, third-party open access is the most popular model today, and for good reason. Zero equity. Fast to execute. Immediate savings. “For a consumer who wants to reduce their power bill without taking on project risk, it's the obvious entry point. Captive and group captive offer deeper savings and greater energy security over the long run. But they require equity participation and balance sheet commitment. Not every consumer is ready for that,” he reasons.
Patel highlights that captive and group captive models tend to deliver higher savings, mainly because they help avoid additional charges like surcharges, making them ideal for companies with steady, large power needs.
Jain observes that captive models suit large consumers with steady load and capital availability, offering full control and long-term savings. “Group captive spreads investment and consumption across multiple consumers, reducing individual financial burden while retaining benefits. Currently, group captive structures are gaining traction due to relaxed norms, balancing cost-effectiveness with regulatory ease.”
How should one choose? According to Behera, in broad terms:
The cumulative installed solar open access capacity in the C&I sector crossed 30 GW in December 2025, with demand particularly strong from energy-intensive sectors such as manufacturing, data centres, and IT services, which require scalable and reliable renewable procurement solutions.
As per Ministry of New and Renewable Energy (MNRE) data, in FY26, a total of approximately 15 GW of solar capacity, which is about 34 percent of overall capacity addition, has been added in the C&I sector. This includes 2 GW in rooftop solar. This is 150 percent YoY growth as the sector added 10 GW in FY25. The C&I sector, including captive, contributed to about 4.5 GW (about 75 percent) of the total wind capacity addition in FY26.
In the next five years, the share of renewables in C&I consumption is going to rise significantly. As per a projection by MNRE Secretary Santosh Kumar Sarangi, the renewable energy demand from the C&I segment is likely to ramp up in a range between 60-80 GW by 2030, driven by accelerating demand for renewable energy from the proliferation of data centres and expanding manufacturing operations.
Open Access Models Gaining Prominence
C&I consumers, large institutions, and residential complexes are increasingly adopting renewable energy, which offers greater cost efficiency as compared to grid tariffs. In recent times, solar open access is emerging as a scalable alternative to rooftop solar, especially for large consumers.
Affan Patel, Whole Time Director, KP Group, remarks, “C&I consumers are increasingly shifting from rooftop solar to open access renewable energy due to scalability, lower tariffs, and flexibility. Open access allows large energy buyers to source power from utility-scale solar or wind projects without being constrained by rooftop space, while also benefiting from long-term cost predictability. Regulatory support and improved transmission frameworks have further accelerated this shift.”
According to Akshay Hiranandani, CEO, Serentica Renewables, the shift from rooftop solar (RTS) to open access renewable energy among C&I consumers is not incidental; it reflects a deeper structural shift in how industries approach energy. “While rooftop solar served as an important starting point, its limitations in scale and consistency have become evident as industrial energy demand continues to grow. Factories do not operate on constrained capacity; they require reliable, large-scale power that rooftop installations alone cannot provide,” he says.
He further adds that open access addresses this gap by enabling access to utility-scale renewable energy through long-term arrangements that offer both cost efficiency and tariff predictability. “More importantly, it allows industries to align with evolving ESG commitments and global supply chain expectations, where the ability to demonstrate large-scale renewable adoption is becoming critical,” shares Hiranandani.
Jogendra Behera, Head, Policy, Regulatory & Non-Utility Markets, Apraava Energy, feels that many large C&I consumers now want not just partial solarisation, but a larger share of annual electricity consumption covered through renewable power, along with better long-term tariff visibility. “In addition, emerging procurement structures such as Virtual Power Purchase Agreements (VPPAs) and Contracts for Difference (CfDs) are gaining traction, particularly among large corporates and data centres. These instruments allow consumers to hedge power price volatility and meet sustainability targets without being constrained by physical delivery, thereby complementing open access procurement,” he elucidates.
Anil Bhat, Director – Business Development, Hexa Climate, remarks, “For any serious industrial consumer with a load of a few megawatts or more, rooftop simply cannot move the needle on energy costs or decarbonisation targets. Open access gives you scale, better tariffs, and the ability to source wind and hybrid power – not just daytime solar. That changes the equation entirely. For large C&I players with RE100 commitments or serious cost pressures, open access is no longer optional; it's the only lever that moves fast enough.”
Mrigesh Kejriwal, Head – Asset Management, Fourth Partner Energy, agrees, “For many organisations, this shift is also aligned with global sustainability commitments such as RE100, which mandates sourcing 100 percent of electricity from renewable energy. Open access projects, with their ability to deliver utility-scale power, are emerging as the most effective pathway to meet these ambitious targets.”
The Relevance of Rooftop Solar in the C&I Segment
However, rooftop solar remains relevant for consumers with adequate roof space, steady daytime load, and moderate demand, offering simple, on-site generation without open-access complexities – especially suited for commercial buildings, MSMEs, warehouses, and institutions, asserts Behera.
Akshat Jain, CEO, KLK Ventures, emphasises, “Rooftop solar remains preferred for businesses with available roof space, simpler internal energy management, and a desire for onsite energy security. It also continues to appeal where net metering policies are strong, or for organisations emphasising visible sustainability initiatives on their facilities.”
Kejriwal adds, “RTS continues to play a meaningful role, particularly for SMEs, hospitals, malls, and IT parks where rooftop space is available, and energy demand is moderate. RTS offers behind-the-meter savings, avoids transmission and wheeling charges, and can be deployed relatively quickly.”
Increasingly, the transition is not about replacement but progression, with many consumers adopting a hybrid approach – using rooftop for optimisation and open access for scale, states Hiranandani.
Captive vs Group Captive vs Third Party Open Access: The Preferred Procurement Model
There are mainly three procurement models for the C&I consumers to source renewable energy: captive, group captive and third party PPAs. Procurement models shape both project economics and regulatory exposure.
Kartikeya Narain Sharma, Co-founder and Chief Business Officer, Sunsure Energy, explains, “When a large-scale industry wants to adopt renewable energy at scale, they are faced by the classic business question – ‘build or buy?’ If they want to ‘build’ the RE project for themselves, this would require them to build a fully owned open access plant, including land acquisition, getting grid connectivity permissions and the construction and long-term operations of the project. This is called a ‘Captive’ project. This yields the lowest cost of power for the consumer but requires a deep commitment to the project and involves embracing the risks that come with such commitment. For e.g., the power banking scenario may completely change tomorrow, and the consumer may be left with excess project capacity with no takers. Or, the project may get stalled at the construction stage itself due to ROW issues, leading to massive delays and losses.”
He further shares that generally, businesses prefer to just ‘buy’ power rather than foot the bill for the massive CAPEX and operational intensity typical for large-scale power projects. “There are two options here – buy power from a completely unassociated project, which is called Third Party supply. Or, draw power from a project where the consumer qualifies as a Group Captive consumer.”
According to Sharma, the Group Captive Open Access model is the most popular for large-scale industries to shift to renewable energy. Under this model, the power consumer puts up a part of the project cost as equity investment and is exempt from the levy of cross-subsidy (CSS) and additional surcharge (AS) on the power drawn by the consumer from the power project. “Third party supply attracts CSS and AS. Typically, CSS and AS amount to INR 2 or more per unit of electricity. Hence, this is a significant saving for the end consumer and makes the group captive model a very attractive one.”
Talking about the model preference, Rear Admiral R Sreenivas, VSM, (Retd.), Chief Executive Officer, Bondada Group, remarks, “The choice of model depends on a company’s risk appetite, capital allocation strategy, power demand consistency, and regulatory landscape in the operating state. Currently, group captive structures are gaining significant traction as they strike a balance between cost efficiency and shared investment, especially for mid-sized consumers who may not independently meet captive thresholds.”
Kejriwal opines, “Group captive models offer a more balanced approach by optimising both investment and risk. Their attractiveness has increased following regulatory changes that allow collective 51 percent consumption rather than strict proportional consumption by individual users. This has broadened access for diverse consumer groups, including SMEs, and is expected to accelerate adoption.”
According to Bhat, third-party open access is the most popular model today, and for good reason. Zero equity. Fast to execute. Immediate savings. “For a consumer who wants to reduce their power bill without taking on project risk, it's the obvious entry point. Captive and group captive offer deeper savings and greater energy security over the long run. But they require equity participation and balance sheet commitment. Not every consumer is ready for that,” he reasons.
Patel highlights that captive and group captive models tend to deliver higher savings, mainly because they help avoid additional charges like surcharges, making them ideal for companies with steady, large power needs.
Jain observes that captive models suit large consumers with steady load and capital availability, offering full control and long-term savings. “Group captive spreads investment and consumption across multiple consumers, reducing individual financial burden while retaining benefits. Currently, group captive structures are gaining traction due to relaxed norms, balancing cost-effectiveness with regulatory ease.”
How should one choose? According to Behera, in broad terms:
- Third-party suits consumers prioritising flexibility and low upfront investment.
- Captive suits consumers with a very large, stable load and a willingness to invest directly.
- Group captive suits consumers wanting better economics than third-party while sharing investment and consumption obligations with others.
“Today, for larger off-site renewable procurement in India, group captive remains one of the most commercially popular structures, particularly where consumers are focused on cost savings and long-term tariff certainty. That said, third-party open access is also relevant where regulatory barriers are manageable, and the consumer wants an asset-light model,” opines Behera.
Group Captive Becomes Even More Attractive
In March 2026, the Ministry of Power amended the Electricity Rules relating to captive generating plants to remove interpretational ambiguities, improve ease of doing business, and make the captive framework more workable. The amendments retain the core thresholds of 26 percent ownership and 51 percent aggregate consumption, but they provide greater flexibility for group captive users. Importantly, excess consumption beyond proportionate entitlement may not qualify as individual captive consumption, but it still counts toward the collective captive consumption qualifying requirement of the group.
According to Patel, the recent relaxation allowing collective 51 consumption is a big unlock for C&I consumers. “Earlier, even small deviations by one user could trigger penalties for the entire group, creating uncertainty. Now, flexibility at a group level reduces this risk, improves project bankability, and makes participation easier.”
In real life, individual consumption fluctuates due to plant shutdowns, production cycles, maintenance, seasonal demand, and business changes. “A rigid proportionality test could create the risk that one member’s variation jeopardised captive qualification for the structure. By moving toward collective consumption recognition, the framework becomes more aligned with actual industrial operations,” explains Behera.
Hiranandani adds, “Open access adoption in India has been constrained less by demand and more by structural inflexibilities misaligned with actual industrial consumption patterns. The earlier requirement of individual proportionality often created compliance risks in dynamic operating environments where consumption is rarely static. By allowing the 51 percent consumption threshold to be met collectively, the policy recognises the variable and interconnected nature of industrial demand. This reduces the risk of disqualification due to minor deviations and improves confidence among C&I consumers.”
What this does, practically, is make group captive viable for industrial clusters, SEZs, and mid-sized consumers who couldn't anchor a project alone. “They can now aggregate demand flexibly without being held hostage to consumption matching. We will see more group captive structures close in the next 12 to 18 months as a direct result. The government seems to understand the distinction between policy intent and operational reality here, which is encouraging,” comments Bhat.
The Rise of Energy Storage
As industries strive for a reliable and cost-effective power supply, integrating BESS is becoming lucrative. One of the most notable trends is the increasing focus on hybrid and round-the-clock (RTC) renewable energy solutions.
Rahul Mishra, President - C&I Business, BluPine Energy, observes, “Developers are actively combining solar and wind capacities, and increasingly integrating battery energy storage systems (BESS), to deliver firm and dispatchable power. This shift reflects a broader market transition. C&I consumers are no longer looking at renewable energy purely as a cost-saving mechanism, but as a dependable power source capable of supporting continuous industrial operations. As a result, project design and procurement structures are evolving to align with these requirements.”
He further adds that the market is witnessing a rise in storage-linked tenders and projects, indicating that BESS is becoming an integral part of future renewable energy systems. “Storage enables better management of intermittency, supports grid stability, and enhances the ability of renewable energy projects to deliver power in line with demand patterns. As developers scale up such integrated solutions, storage is expected to play a critical role in enabling higher renewable penetration for C&I consumers,” shares Mishra.
Highlighting the use cases for BESS in the C&I sector, Nirmal Shaju, Manager – GOTF, Global Energy Alliance for People and Planet, remarks, “For C&I consumers, BESS makes the strongest economic sense in three scenarios: managing peak demand charges, leveraging time-of-use tariff arbitrage, and maximising returns from rooftop solar by storing surplus generation instead of exporting it at lower feed-in rates as states adopt net billing from traditional net- and gross-metering arrangements.”
He further adds that as banking norms tighten, BESS can help C&Is to manage the excess generation from grid-scale RE capacities, till waiver on transmission charges prevail, with optimal sizing and location identification. “Together, these can significantly reduce electricity costs for load-heavy industries like manufacturing, cold chains and data centres. As India's grid and electricity markets evolve, early moving C&I adopters will also be positioned to monetise their storage assets through demand response and ancillary service programmes, turning a cost-saving tool into a revenue opportunity.”
BESS integration is now a policy-level requirement in two of India’s most popular states for Open Access and Rooftop Solar – Rajasthan and Maharashtra. Sharma highlights the benefits of BESS integration for both developers and C&I consumers:
- Daytime Peak-shaving: Since most Solar Open Access plants are producing more power than can be utilised in real-time by the end consumers during the peak solar production hours of 11 AM – 3 PM, BESS being part of the system helps by absorbing this power for charging. Thus, reducing risks of oversupply from solar power plants and ensures no lapse of power due to power banking restrictions.
- Offset Expensive Peak TOD power in the Evening: Power prices are the highest during evening periods (6 PM to 12 AM) across India. For C&I customers, grid tariffs during these hours are 25-40 percent more expensive than the power during daytime hours. Hence, drawing power from BESS during this time results in much higher savings for the C&I customers. This is also a relevant solution for behind-the-meter BESS applications to supplement RTS systems.
- Reduce DSM burden on Power Producers: The recently notified CERC DSM regulations have tightened requirements for RE projects to provide accurate daily forecasts to SLDC/NLDC. Going forward, deviations from forecasts will attract penalties that could exceed 5 percent of revenues for solar producers, a 7x–10x increase compared to earlier DSM rules. Integrating BESS with RE systems can help control this by shaping the generation profile closer to forecasts without affecting overall daily output.
As industries look for reliable and cost-efficient power, BESS becomes especially valuable in high-tariff and power-sensitive scenarios. "For C&I consumers facing peak tariffs that are 20 -40 percent higher than off-peak rates, BESS helps shift energy usage and reduce costs. It is also advantageous where grid outages or voltage fluctuations impact operations, ensuring continuity and minimising downtime losses," Patel remarks.
BESS enables peak load management, backup power, and time-of-use optimisation, while also smoothing the variability of solar and wind generation. “It is particularly valuable in sectors such as data centres, pharmaceuticals, and continuous process industries. The economic viability of BESS improves in scenarios with pronounced peak and off-peak tariff differentials, while operationally enhancing energy reliability,” asserts Kejriwal.
From an operational standpoint, BESS is also advantageous when paired with open access or hybrid renewable projects, as it enables time-shifting of energy and enhances the effective utilisation of renewable power, states Sreenivas. “As storage costs continue to decline and regulatory frameworks evolve to recognise its value, BESS is expected to play a central role in optimising both cost and reliability for C&I consumers transitioning to clean energy and also act as a catalyst in the grid stability efforts of grid operators.”
The Way Ahead
India’s C&I power transition is being driven by structured procurement models and grid-responsive technologies, with open access expanding and captive structures evolving through regulatory refinements. At the same time, battery energy storage is becoming critical to address intermittency, peak mismatch, and forecast deviations, enabling load shifting and improving dispatchability.
Overall, the sector is moving toward integrated energy models where procurement, generation, and storage are optimised to lower costs, enhance reliability, and support higher renewable penetration.
Please share!
If you want to cooperate with us and would like to reuse some of our content,
please contact: contact@energetica-india.net.
please contact: contact@energetica-india.net.
Next events
Last interviews
Savek Dubey
Assistant Manager – Product Application
From Innovation to Execution, BESS is Now Central to Power Planning: Savek Dubey, Sungrow
Gunjan Jain
CFO
Mufin Green Finance's Gunjan Jain Bets on Premium Financing as India’s Next Credit Opportunity
Rutvi Sheth
Director
Grid Modernisation, Storage, and Hydrogen to Shape India’s Energy Future: Advait's Rutvi Sheth
Hartek Singh
CMD
Energy Security Has Evolved into a Strategic Imperative for India: Hartek Singh
Ratul Puri
Chairman
Geopolitics Reshaping Solar Strategy, Says Hindustan Power's Chairman Ratul Puri
Follow us