Every business wants to save on expenses and maximize profits. To achieve this, they put in a lot of effort, and one of the key areas of focus is electricity savings. Moreover, businesses are increasingly looking for ways to be sustainable and contribute to a greener future. This is where solar energy comes into play.

Electricity Savings + Sustainability = Solar.

One of the most effective ways for commercial and industrial (C&I) consumers to transition to clean energy is through Solar Open Access. It’s crucial to learn what is open access in solar power. This model allows industries to utilize solar power without the constraints of on-site solar installations, making it a cost-effective and scalable energy solution.

What is Solar Open Access?

Solar Open Access is a policy framework that enables businesses to generate solar power at an offsite location and transmit it to their facility through the existing government grid infrastructure. Instead of installing solar panels on their premises, industries can set up or procure power from large-scale solar farms located anywhere within the state.

This means that a company can invest in a ground-mounted solar power plant in a region with optimal sunlight conditions and still use the electricity at their manufacturing unit, IT park, shopping mall, or hospital located elsewhere.

Financial Models in Open Access Solar

As businesses look for ways to reduce electricity costs and adopt sustainable energy solutions, Open Access Solar has emerged as an ideal option. However, companies can choose from different financial models based on their investment capacity, ownership preference, and long-term energy goals. Here, we explore the key financial models in Open Access Solar and how they benefit businesses.

1. Captive Model

• In Captive Open Access Solar, a single company invests in and owns the entire solar power plant.

• The company consumes 100% of the power generated for its own operations.

• The benefit is full control over the plant and maximum cost savings, but it requires a significant upfront investment.

• Ideal for large businesses with high power consumption and capital for investment.

2. Group Captive Model

• Multiple businesses jointly invest in a solar power plant.

• They must own at least 26% of the plant and consume at least 51% of the power generated.

• This model reduces the investment burden on a single company while still offering lower electricity costs.

• Suitable for mid-sized businesses that want affordable renewable energy without full ownership responsibility.

3. Third-Party PPA Model

• A solar developer owns and operates the plant, and businesses sign a long-term Power Purchase Agreement (PPA) to buy electricity at a fixed rate.

• Companies do not need to invest any capital and only pay for the energy they consume.

• This model is ideal for businesses that want cost savings without ownership responsibilities.

• Provides flexibility, predictable energy pricing, and no maintenance obligations.

Choosing the Right Model for Your Business

Each financial model has its own advantages. The best option depends on:

1. Capital Availability – Businesses with higher capital can opt for Captive or Group Captive models for greater savings.

2. Ownership Preference – Companies that prefer not to own or manage a solar plant can choose the Third-Party PPA model.

3. Energy Consumption – High energy consumers benefit from Captive or Group Captive models, while medium-scale businesses can opt for PPAs.

How Does Solar Open Access Benefit C&I Consumers?

1. Significant Cost Savings

Electricity costs form a large portion of operational expenses for industries. By using Open Access Solar, businesses can replace costly grid electricity with lower-cost solar power, leading to substantial savings on their energy bills.

2. No Rooftop Limitations

Many industries face challenges in installing rooftop solar due to space constraints or structural limitations. Open Access allows them to leverage solar energy without requiring any modifications to their facility’s roof.

3. Sustainability & Compliance

With increasing global focus on sustainability and ESG (Environmental, Social, and Governance) compliance, businesses can enhance their green credentials by sourcing renewable energy through Open Access. It also helps meet Renewable Purchase Obligations (RPOs) and other sustainability targets.

4. Energy Security & Price Stability

Electricity prices from traditional grid sources fluctuate due to fuel costs and policy changes. Solar Open Access provides long-term price stability, protecting businesses from unpredictable tariff hikes.

5. Scalability & Flexibility

Unlike rooftop solar, which is restricted by space availability, Open Access allows companies to scale their energy production as per their growing demand. Businesses can invest in larger solar power plants, ensuring they meet their present and future energy needs.

How Does Solar Open Access Work?

1. Land & Solar Plant Setup – A business either sets up its own solar power plant or partners with us who owns a solar farm in the state.

2. Grid Connection – The solar power plant is connected to the nearest state electricity grid substation.

3. Energy Transmission – The electricity generated is transmitted through the government’s existing transmission lines to the company’s facility.

4. Billing & Settlement – The generated solar energy is deducted from the company’s electricity bill, reducing their dependency on conventional grid power.

Conclusion

Solar Open Access is revolutionizing the way C&I consumers access clean and affordable energy. By offering cost savings, flexibility, and sustainability benefits, it provides an ideal solution for businesses looking to optimize energy costs and meet their green energy goals.

For industries aiming to switch to renewable energy with minimal infrastructure investment, Solar Open Access is the future. Now is the time for businesses to embrace this model and power their operations sustainably!