– By Shreyas Gowda, Senior VP, Oorjan Cleantech
India has set its sights on an ambitious goal: achieving 500 GW of non-fossil fuel energy capacity by 2030. While much of the spotlight has been on rooftop solar and utility-scale projects, one transformative solution continues to be overlooked — open access solar. This model allows large power consumers to directly source electricity from solar producers, bypassing traditional electricity distribution companies (DISCOMs). Despite its enormous potential to reshape India’s energy landscape, open access solar remains underutilized due to regulatory, policy, and awareness challenges.
Open access solar is a powerful proposition for both consumers and developers. For commercial and industrial (C&I) consumers, it provides a cleaner, more affordable alternative to increasingly expensive and carbon-heavy grid electricity. For developers, it ensures long-term contracts and stable demand — crucial for project bankability. Moreover, this model can significantly reduce the carbon footprint of energy-intensive sectors with minimal reliance on public funding.
Despite its promise, open access solar remains confined to a few forward-thinking states and large enterprises. The biggest hurdle lies in regulatory fragmentation — with each state adopting different rules, charges, and approval processes. States like Karnataka and Tamil Nadu have embraced open access with progressive policies, while others have imposed surcharges, banking restrictions, and cumbersome procedures that deter adoption, especially by small and medium enterprises (SMEs).
Another core issue is the resistance from DISCOMs. As open access threatens their traditional revenue models — especially the cross-subsidies provided by high-paying commercial users — many DISCOMs delay approvals, reverse policies, or create opaque processes that discourage participation. These actions are enabled by the lack of clear enforcement and accountability at the central level.
Additionally, there’s a glaring lack of awareness among mid-sized businesses, industrial clusters, and even policymakers. Many remain unaware of the operational and financial benefits of open access or are intimidated by the complexity of regulatory compliance. Building awareness and enhancing policy literacy are critical to expanding adoption.
To its credit, the government introduced the Green Open Access Rules in 2022 to improve accessibility, including reducing the minimum eligibility and simplifying procedures. However, their inconsistent implementation across states and weak enforcement dilute their impact.
For open access solar to realize its full potential, several key actions are essential:
- A harmonized national policy framework to ensure regulatory clarity.
- Incentives and compensation mechanisms to balance DISCOM losses.
- A competitive marketplace for green power.
- Digitization of approval systems, transparent processes, and real-time application tracking to enhance confidence.
As India strives for an inclusive and resilient energy future, open access solar must play a central role. It has the power to democratize clean energy access, attract private investment, and ease pressure on public infrastructure. Ignoring this opportunity would be a missed step in India’s climate and economic ambitions. It’s time this quiet contributor receives the recognition and support it deserves in the country’s renewable roadmap.
