Key Takeaways
- Open access solar landed costs vary by ₹1.50–3.00/unit across India's major industrial states — choosing the right procurement route in the right state is one of the biggest decisions an industrial buyer can make
- Rajasthan and Gujarat offer the most competitive open access economics for large solar consumers, with landed costs of approximately ₹3.80–5.20/unit and ₹4.00–5.00/unit respectively
- Haryana has the highest additional surcharge of India's major industrial states — ₹1.37/unit additional surcharge (H2 FY 2025-26, per HERC order) — making open access economics tighter than in southern or western states
- Maharashtra carries the highest CSS burden (~₹3.20/unit) and very limited RE exemptions, making group captive solar the preferred route for most large Maharashtra consumers
- The cross-subsidy surcharge (CSS) is the single largest variable in open access cost — states that waive or reduce CSS for renewable energy open access (Rajasthan, Gujarat, Odisha) deliver significantly better economics
- Group captive solar — where the consumer holds 26%+ equity in the plant — eliminates CSS entirely and is the most cost-effective model in all states, especially those with high CSS rates (Maharashtra, Haryana)
When an industrial buyer chooses solar, one of the most important decisions is not just which technology or model to use — it is which state's regulatory framework will govern their procurement. For a factory with ₹1 crore/month in electricity bills, a difference of ₹1.50/unit in open access landed cost means ₹15–20 lakh per month in additional savings or additional cost.
This guide breaks down the open access solar economics for India's five most important industrial states for Sun Wave Technologies' clients: Haryana, Rajasthan, Uttar Pradesh, Gujarat, and Maharashtra.
How Open Access Solar Landed Cost Is Calculated
The "landed cost" of open access solar is what a consumer actually pays per unit of solar electricity delivered to their meter. It is not just the solar generation tariff — it includes all the charges the state levies for using its grid to transmit the power.
Landed cost formula:
Landed Cost = Solar PPA Tariff + Wheeling Charge + Cross-Subsidy Surcharge (CSS) + Additional Surcharge (AS) + Transmission Losses
- Solar PPA Tariff: What the developer charges for generating solar electricity — typically ₹2.20–2.80/unit for ground-mount solar in competitive auction markets. This is broadly similar across states.
- Wheeling Charge: What the state DISCOM/transmission company charges for using the grid to transmit power from the solar plant to the consumer.
- Cross-Subsidy Surcharge (CSS): The largest and most variable charge — DISCOMs impose this to compensate for the revenue they lose when industrial consumers bypass them. State SERCs set this annually.
- Additional Surcharge (AS): Some states impose an additional levy on open access consumers to cover fixed costs of power procurement.
- Transmission Losses: A percentage of units deducted in transit — typically 3.5–5.5% depending on state and voltage level.
State-by-State Comparison: 2026
Rajasthan — Competitive Open Access Leader
Rajasthan is India's largest solar energy state and has one of the most active open access markets. The RERC Green Open Access Regulations 2026 provide a clear framework.
Key 2026 charges (RERC):
- CSS for HT industrial consumers: approximately ₹1.58/unit (verified, RERC FY 2026)
- Additional surcharge: approximately ₹0.72/unit (RERC FY 2026)
- RE CSS exemption: 25–30% available for green energy open access
- Wheeling charge: approximately ₹0.50–0.80/unit (voltage-level dependent)
- Banking charge: 8% of banked energy (under RERC Green OA Regulations 2026)
Indicative landed cost: ₹3.80–5.20/unit for solar open access Grid tariff (HT large industrial): ₹6.50/unit base + fixed charges (RERC FY 2026)
Savings over grid: approximately ₹1.30–2.70/unit Key advantage: Rajasthan's solar irradiation (5.5–6.0 kWh/sq m/day) means generation tariffs are low. BESS-integrated projects get 75% wheeling/transmission exemption for 7 years under RERC 2026 regulations. Key watch-out: High banking charge (8% deduction) penalises plants that rely heavily on grid banking for night consumption.
Best for: Large consumers in Bhiwadi, Neemrana, Jaipur, Jodhpur, Udaipur industrial clusters who can install open access solar sized closely to their daytime consumption profile.
Gujarat — Reliable, Established Framework
Gujarat has one of India's most mature renewable energy frameworks. GERC (Gujarat Electricity Regulatory Commission) maintains a well-structured green open access system.
Key 2026 charges (GERC):
- Banking charge: ₹1.50/kWh (extended until June 30, 2026 per GERC order, April 2026)
- CSS for HT consumers: approximately ₹1.20–1.50/unit (relatively lower than eastern/northern states)
- Additional surcharge: approximately ₹0.82–1.00/unit (increased 22% from October 2025 to March 2026)
- Wheeling charge: approximately ₹0.50–0.70/unit
- Green energy banking window: 7 AM to 6 PM daily (solar hours)
Indicative landed cost: ₹4.00–5.00/unit for solar open access Grid tariff (HT large industrial): ₹7.50–9.00/unit in major DISCOM areas (DGVCL, UGVCL, PGVCL, MGVCL)
Savings over grid: approximately ₹2.50–5.00/unit Key advantage: One of India's most liquid and mature green energy markets; GUVNL and large IPPs offer competitive solar PPAs. C&I tariffs rose up to 9% in FY26, improving the open access savings case. Key watch-out: Additional surcharge increased significantly in H2 FY26; banking window is restricted to solar hours.
Best for: Large manufacturers in Ahmedabad, Surat, Baroda, Ankleshwar GIDC, Vapi, and Rajkot industrial clusters.
Haryana — Higher Charges, Tighter Economics
Haryana is a strategically important industrial state (Faridabad, Manesar, Gurgaon, Bahadurgarh, Panipat) but has historically been a more expensive open access market than Gujarat or Rajasthan.
Key 2026 charges (HERC):
- Additional surcharge: ₹1.21/unit (H1 FY 2025-26), increased to ₹1.37/unit (H2 FY 2025-26) per HERC order
- CSS for HT industrial consumers: approximately ₹1.50–2.50/unit (voltage-dependent; exact figure varies by consumer category)
- Wheeling charge: state-level (higher than Gujarat or Karnataka)
Indicative landed cost: approximately ₹5.00–6.50/unit for solar open access Grid tariff (HT large industrial): ₹8.50–10.00/unit for large HT consumers in Haryana
Savings over grid: approximately ₹2.00–4.50/unit (narrower margin than Gujarat/Rajasthan, but still significant) Key advantage: Haryana industrial tariffs are high — even at a higher landed cost, open access solar delivers meaningful savings. For large consumers (above 5 lakh units/month), open access is still clearly positive. Key strategy: Group captive solar is the preferred model in Haryana — by holding 26%+ equity in a solar plant, consumers eliminate CSS and AS entirely, dramatically improving economics. Key watch-out: HERC's increasing additional surcharge trend reduces third-party open access savings year on year.
Best for: Large HT consumers above 2 MW in Faridabad, Manesar, Gurgaon, Bahadurgarh, Kundli, Sonepat. Group captive model strongly recommended.
Uttar Pradesh — Emerging Market, Improving Framework
Uttar Pradesh has India's largest population and a massive industrial base, but its open access market has historically been less developed than western states. The UPERC framework has been improving.
Key 2026 charges (indicative — exact UPERC orders vary):
- CSS for HT industrial consumers: approximately ₹1.00–1.80/unit (varies by consumer category and voltage)
- Open access charges: improving with UPERC regulatory updates
- The share of open access charges in landed costs is lower in UP than in Haryana, Tamil Nadu, and Maharashtra — making UP one of the more accessible states for open access solar
Indicative landed cost: approximately ₹4.50–5.50/unit for solar open access Grid tariff (HT large industrial): ₹8.00–10.00/unit for large HT consumers in UP Savings over grid: approximately ₹2.50–5.50/unit
Key advantage: UP is becoming more aggressive on renewable energy open access; UPERC has worked to streamline approvals. Large industrial clusters in Greater Noida, Noida, Ghaziabad, Kanpur, Lucknow, and Agra are benefitting. Key watch-out: Transmission infrastructure in UP's interior regions is still being upgraded — connectivity delays can affect open access project timelines.
Best for: Large manufacturers in Noida, Greater Noida, Ghaziabad, Kanpur — with connected loads above 1 MW and interest in off-site solar.
Maharashtra — High CSS, Group Captive Preferred
Maharashtra is India's largest industrial state by GDP, but it carries the highest cross-subsidy burden among major solar markets. MERC (Maharashtra Electricity Regulatory Commission) sets high CSS rates to protect DISCOM revenues.
Key 2026 charges (MERC):
- CSS for HT industrial consumers: approximately ₹2.50–3.20/unit (among the highest in India)
- RE CSS exemption: very limited compared to Rajasthan or Gujarat
- Wheeling charge: approximately ₹0.80–1.00/unit
Indicative landed cost: ₹5.80–7.00/unit for solar open access Grid tariff (HT large industrial): ₹9.00–11.00/unit for large HT consumers in Maharashtra
Savings over grid: approximately ₹2.00–5.00/unit (possible but requires careful modelling) Key advantage: MERC's 2023 amendment allows simultaneous use of rooftop net metering and open access — a useful combination. Grid tariffs are high, so even at high landed costs, savings are real for very large consumers. Key strategy: Group captive solar is the dominant model for large Maharashtra consumers — eliminating CSS saves ₹2.50–3.20/unit immediately. Open access is primarily viable for consumers above 5 MW load or where group captive structuring is complex. Key watch-out: Maharashtra's open access charges are volatile — MERC revises them frequently; financial models must be stress-tested.
Best for: Large manufacturers in Pune, Nashik, Nagpur, Aurangabad, and Mumbai/Navi Mumbai industrial areas with 5+ MW connected load, or group captive arrangements for medium consumers.
State Comparison Summary Table (2026, Indicative)
| State | Est. Open Access Landed Cost | Grid HT Tariff | Est. Savings | CSS Level | Group Captive Benefit |
|---|---|---|---|---|---|
| Rajasthan | ₹3.80–5.20/unit | ₹6.50–7.50/unit | ₹1.30–3.70/unit | Medium-Low | High |
| Gujarat | ₹4.00–5.00/unit | ₹7.50–9.00/unit | ₹2.50–5.00/unit | Low-Medium | Significant |
| Uttar Pradesh | ₹4.50–5.50/unit | ₹8.00–10.00/unit | ₹2.50–5.50/unit | Medium | Significant |
| Haryana | ₹5.00–6.50/unit | ₹8.50–10.00/unit | ₹2.00–4.50/unit | High | Very High |
| Maharashtra | ₹5.80–7.00/unit | ₹9.00–11.00/unit | ₹2.00–5.00/unit | Very High | Transformative |
All figures are indicative ranges for H1 FY 2026 based on available regulatory data. Actual savings depend on connected load, voltage level, plant location, and PPA terms. Verify with your state SERC and energy consultant before finalising.
Group Captive vs Third-Party Open Access: The Critical Choice
For industrial buyers in all five states, the choice between third-party open access (standard OA where CSS applies) and group captive solar (26% equity ownership, CSS eliminated) is the most impactful financial decision.
Cost Impact of Group Captive Exemption
| State | CSS Avoided (CSS Exempt) | Additional Benefit |
|---|---|---|
| Haryana | ₹1.37–2.50/unit | Eliminates largest variable cost |
| Maharashtra | ₹2.50–3.20/unit | Transforms economics |
| Rajasthan | ₹1.10–1.58/unit | Meaningful improvement |
| Gujarat | ₹0.90–1.50/unit | Further improves already competitive costs |
| Uttar Pradesh | ₹0.70–1.80/unit | State-dependent |
For a 2 MW factory in Maharashtra consuming 12 lakh units/month, moving from third-party open access to group captive solar saves an additional ₹30–38 lakh per month on CSS alone. At this scale, the equity investment in the solar plant pays back within 12–18 months purely from CSS savings.
For an explanation of group captive, see: Group Captive Solar in India: Complete Guide. For the March 2026 regulatory changes that made group captive more accessible: Electricity Amendment Rules 2026: What Changed for Captive Solar.
Key Changes in 2026 That Affect Open Access Economics
1. ALMM List-II (June 1, 2026): All solar modules must now use domestically manufactured cells. This has raised solar PPA tariffs slightly (2–5% increase in some cases) as developers adjust to higher module costs. The impact on landed cost is modest but real.
2. Rajasthan RERC Green OA Regulations 2026: New BESS requirements — captive plants above 100% of contract demand must add storage (20% minimum capacity). This raises project costs slightly but unlocks 75% wheeling exemption for 7 years for BESS-integrated projects.
3. Haryana HERC Additional Surcharge Increase: HERC raised the additional surcharge from ₹1.21/unit (H1 FY 2025-26) to ₹1.37/unit (H2 FY 2025-26) — a 13% increase in this cost component in six months. Third-party OA economics in Haryana are under pressure; group captive is increasingly the preferred solution.
4. Gujarat GERC Additional Surcharge: The additional surcharge in Gujarat increased by approximately 22% in H2 FY26. Combined with the banking charge of ₹1.50/unit, Gujarat's open access costs are rising, though they remain more competitive than Haryana or Maharashtra.
5. Electricity (Amendment) Rules 2026 (March 13, 2026): Expanded corporate group definition for captive consumers, explicit BESS recognition, AoP proportionality clarity — all making group captive solar more legally secure and accessible for industrial groups with multiple entities.
How to Choose the Right Model for Your State
If you're in Rajasthan or Gujarat: Third-party open access delivers strong economics. For plants above 2 MW load, start with a standard open access PPA. Group captive adds incremental benefit — worth pursuing if your consumption is large and you have appetite for equity investment.
If you're in Haryana or UP: Third-party open access works for large consumers (above 2 MW) but requires careful modelling. Group captive is strongly recommended for any consumer above 1 MW looking for maximum savings. The CSS savings in Haryana and UP (particularly at high CSS levels) make group captive investment clearly worthwhile.
If you're in Maharashtra: Group captive is the primary route for maximum savings. Third-party OA is viable only for very large consumers where the absolute saving (despite high CSS) is still substantial in rupee terms.
If your consumption is below the open access threshold (typically 500 kW–1 MW): Consider rooftop solar (CAPEX or RESCO) first — this avoids all grid charges and delivers solar at direct self-consumption rates. For more: How to Size a Solar Plant for a Factory in India.
Sun Wave Technologies: Solar Across All Five States
Sun Wave Technologies structures and executes solar projects for industrial buyers across Haryana, Rajasthan, UP, Gujarat, and Maharashtra. We help clients:
- Model the open access economics specific to their state, DISCOM, and consumer category
- Navigate regulatory approvals — from DISCOM NOC to SERC open access registration
- Structure group captive arrangements for clients seeking CSS exemption
- Execute EPC for both on-site rooftop and off-site open access projects (ALMM-compliant modules)
To explore solar energy for your factory: Solar EPC Company in India — Sun Wave Technologies. For a general open access guide: Open Access Solar India: Complete Guide for Industrial Buyers.
Frequently Asked Questions
Q: Which state has the lowest open access solar cost in India? Odisha has the lowest landed cost nationally (approximately ₹3.50–4.50/unit), primarily due to its 50% CSS exemption for renewable energy open access. Among Sun Wave Technologies' primary target markets, Rajasthan offers the most competitive open access economics (₹3.80–5.20/unit), followed by Gujarat (₹4.00–5.00/unit).
Q: Is the CSS rate the same for solar open access as for conventional open access? In most states, solar (renewable) open access consumers receive partial CSS exemptions or waivers that conventional (thermal) open access consumers do not. The extent of the exemption varies by state — Rajasthan and Gujarat offer meaningful RE exemptions; Maharashtra's exemptions are more limited.
Q: Can I use open access solar from Rajasthan in my Haryana factory? Yes — inter-state open access (using interstate transmission system, ISTS) is permitted. However, ISTS charges (approximately ₹0.50–0.80/unit) apply, though ISTS charges are currently waived for new renewable energy projects commissioned before a specified date. Confirm the current ISTS waiver status with your energy consultant before structuring an inter-state OA arrangement.
Q: How do I calculate if open access solar makes sense for my factory? Work through this calculation:
- Current DISCOM tariff (₹/unit) for your consumption slab
- Estimated open access landed cost (from this guide, refined by your energy consultant)
- Savings per unit = (1) minus (2)
- Monthly savings = (3) × monthly units consumed under OA
- Annual savings = monthly savings × 12
- Compare annual savings to annual PPA obligations and any capital requirements for equity stake (if group captive)
Q: What is the minimum load for open access solar eligibility in each state?
- Rajasthan: 100 kW (Green Open Access)
- Gujarat: 1 MW (Green Open Access); some categories 500 kW
- Haryana: 1 MW (standard OA)
- Uttar Pradesh: 1 MW (standard OA); check latest UPERC updates
- Maharashtra: 100 kW (Green Open Access per MERC framework)
Thresholds change with regulatory revisions — confirm current eligibility with the state SERC or a licensed open access consultant before applying.
Q: Are wheeling charges waived for ISTS-connected solar plants? The ISTS waiver for new renewable energy projects (exempting inter-state transmission charges and losses) has been extended multiple times. Confirm the current waiver status at the time of your PPA negotiation — your solar developer will know the applicable ISTS waiver status.
Sources
- RERC FY 2026 tariff order (CSS: ₹1.58/unit, AS: ₹0.72/unit): rerc.rajasthan.gov.in
- HERC Additional Surcharge FY 2025-26 H2 (₹1.37/unit): SolarQuarter — HERC Imposes ₹1.37/Unit (May 5, 2026)
- GERC Banking Charge Extension (₹1.50/kWh, extended to June 30, 2026): Mercom India — GERC Extends Banking Charge
- Reclimatize.in — India Open Access RE Landed Cost by State: reclimatize.in
- Mercom India — Q1 2026 India Solar Open Access Market Report (May 21, 2026)
- NOVEREGY Solar — RERC Green Open Access Regulations 2026: novergysolar.com
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