Introduction
As demand for clean and affordable energy grows, solar power has become one of the fastest-growing sources of energy worldwide. In India, large-scale solar parks are helping meet this demand by producing renewable energy on a massive scale. But there’s another game-changing approach making solar power more accessible: open access.
Open access allows businesses and institutions to buy electricity directly from solar parks, without relying only on their local electricity distribution companies. This not only helps reduce energy costs but also supports sustainability goals by making it easier to switch to renewable energy sources.
In this article, we’ll explore what open access in solar parks means, how it works, and why it’s becoming a key pathway to a cleaner, more sustainable energy future.
What Is a Solar Park?
A solar park or photovoltaic (PV) park is a large-scale installation of solar panels designed to generate electricity from sunlight. These parks consist of numerous solar panels spread across a significant area of land, along with supporting infrastructure like transmission lines, inverters, and transformers. They are a key component in the transition to renewable energy, providing a centralized source of clean, green energy.
These parks help generate and store solar energy for many industries that used to use electricity in the past; in this process, they save money and reduce electricity usage for individuals.
Solar parks include not just the solar panels but also the necessary infrastructure to connect to the electricity grid, such as transmission lines, inverters, and transformers.
Overview of Open Access in Solar Parks
An open-access solar plant is a large solar power facility that supplies clean electricity directly to commercial and industrial (C&I) consumers. With this model, companies don’t need to install solar panels on their rooftops or land. Instead, the electricity is generated at a solar park and delivered through the power grid under open access regulations. This allows businesses to buy renewable energy at competitive rates while reducing their carbon footprint.
Types of Open Access
- Inter-State Open Access: In this model, electricity is sold and purchased across state boundaries as per the Central Electricity Regulatory Commission (CERC) rules of the Central Government. Businesses can go for short-term contracts (less than 1 month) or long-term agreements (up to 25 years).
- Intra-State Open Access: Here, power is bought and sold within the same state as per the State Electricity Regulatory Commission (SERC) guidelines. The state government sets the rules, but the overall process is similar to interstate open access.
How Open Access Solar Works: Models Explained
Captive Model
In this model, the energy is used by the individual, with no sharing with any other individuals, as the solar park is solely owned by the customer.
Since the company is generating power for itself, certain charges and surcharges are waived, making it a cost-effective option for large energy consumers with long-term needs.
Group Captive Model
This solar plant is designed for individuals who come together to invest in a single source of energy and use it together. To qualify, consumers must collectively own at least 26% of the plant and use 51% or more of the electricity generated.
Third-Party PPA Model:
This model is a long-term agreement made for people who do not want any upfront investment, so they purchase electricity from a solar power generator under the PPA (Power Purchase Agreement) with a solar power producer. However, some open access charges may still apply.
People Also Read: Discover How 100% Renewable Energy Works. Pros, Cons, and Uses
Benefits of Open Access in Solar Parks
- Cost Savings: When we compare solar energy to grid energy, the percentage of cost savings is around 30% to 50%, which is a huge difference. These savings are further increased by exemption from several fees, including the cross-subsidy surcharge (CSS) and other surcharges in some states.
- Sustainability & CSR: Open access helps businesses to reduce their carbon footprint and meet Renewable Purchase Obligations, which strengthens the brand’s standing as an ecologically conscious and sustainable business.
- Scalability & Accessibility: It is accessible to the business community even without being the owner of the solar parks, which helps them get renewable energy without any first-hand investments.
- Infrastructure Efficiency: Open access solar parks come with ready-to-use infrastructure, including land, internal roads, transmission lines, and grid connectivity. This eliminates the need for businesses to handle permits, construction, or approvals themselves.
Real-World Impact and Trends
Corporate & Industrial Uptake
Corporate and industrial (C&I) consumers are adopting open access solar to cut electricity costs and meet sustainability goals. Large manufacturers, IT parks, and commercial complexes are increasingly sourcing power from solar parks to reduce their carbon footprint and comply with Renewable Purchase Obligations (RPOs). This shift is driving rapid growth in the open access solar market across India.
State-Level Growth:
A rising leader in the solar industry had also taken out some projects that are helping states grow towards renewable energy. Novergy Solar, a known leader in the solar industry, had taken out 2 main projects: Novergy’s 40 MW Solar Park in Rajasthan and Novergy’s 40 MW Plug and Play Solar Park in Maharashtra.
Other than this, as of March 2024, over 18 GW of open access solar is in development/pre-construction across key states like Karnataka, Rajasthan, Maharashtra, Tamil Nadu, and Andhra Pradesh.
Conclusion
Open access in solar parks is reshaping how businesses access renewable energy in India. By allowing companies to purchase power directly from large-scale solar facilities, it eliminates the need for on-site installations, reduces costs, and accelerates the shift to clean energy. Whether through captive, group captive, or third-party PPA models, open access offers flexibility for different business needs while supporting national sustainability goals.
With ready infrastructure, competitive pricing, and strong environmental benefits, open access solar is not just a smart business choice; it’s a crucial step toward a greener, more sustainable future. As more corporate and industrial consumers embrace this model, solar parks will continue to play a central role in powering India’s renewable energy revolution.
If you are interested in knowing more about Open Access in Solar Parks, then you can contact Novergy Solar to know more!
FAQs
1. What is open access in solar?
Ans- An open-access solar plant is a large solar power facility that supplies clean electricity directly to commercial and industrial (C&I) consumers.
2. What is the difference between open access and PPA?
Ans- The Open Access model lets industrial and commercial consumers buy power directly from generators at competitive rates under a long-term PPA.
3. What is the OPEX and CAPEX model in solar?
Ans- CAPEX—The consumer owns the solar system. OPEX—The third-party financing company owns the system. Learn more: Solar Opex model cuts your costs and increases revenue?