Wind-solar hybrid open access power projects can meet 85-90% of the power requirements of big commercial and industrial (C&I) consumers in Tamil Nadu, according to industry experts.

At the recent C&I Clean Energy Meet hosted by Mercom in Chennai, experts from leading solar companies discussed the benefits of rooftop solar systems, open access projects, and battery energy storage systems (BESS) for the C&I sector.

Due to its low lifetime costs, the C&I sector is turning towards green energy.

Seshagiri Meka, Managing Director of Winsol Cleantech, said, “Ten years back, the power tariff was ₹4 (~$0.045)/kWh, and it has increased to ₹8 (~$0.091)/kWh. In the next 25 years, the tariff may reach ₹15-₹20 (~$0.17-~$0.22)/kWh. However, when you adopt a wind or solar power project, the lifetime energy cost is ₹2.5 (~$0.028)/kWh in the captive route and ₹3.50-₹4 (~$0.040-$0.045)/kWh in the group captive route. These costs are fixed for 25 years, apart from variable open access charges.”

VIjayanand P, Founder and Business Head of 4E Renewables and RE Solutions, explained that adopting renewable project industries can yield tangible and intangible benefits. “While direct tangible benefits are lower operational costs, there are also intangible benefits, such as global recognition and weightage as a vendor meeting 60-70% power needs through renewable energy.”

Rangarajan Kasturi, CMO of Festa Solar, said renewable energy adoption rates will likely remain low without adequate government support. With government support, renewable energy could meet 60-70% of the industry’s energy needs in the next 10 years.

Santhosh Thangarajan, Senior Manager- Business Development of Sunsure, said the C&I sector consumes 40-42% of the total energy generated in India. Even 20% of the displacement with renewable energy would amount to 80 GW. Last year, the open access segment achieved 6.9 GW from 1-2 GW yearly in the past.

He added that the industry will remain bullish for the next few years and add 10 GW annually. It plans to reach 80 GW by 2030.

Jefry Sahayam, Business Development Manager- South India (DG) of Jinko Solar, said rooftop solar vendors must be chosen carefully. “Solar technology gets updated every six months to one year, unlike most technologies. Customers need to analyze the company, the type of modules used, the company’s terms of field operation, and the degradation of modules.”

Experts also suggested choosing vendors providing performance guarantees and insurance to combat solar module degradation.

Variance in Rooftop System Costs

Kasturi said that the cost of a rooftop solar system installation would range between ₹30,000 and ₹32,000 (~$0.34-$0.36)/kW.

He explained that the cost of installing a rooftop system depends on solar panels, inverters, safety products, distribution boxes, earthing for AC and DC components, and cable quality. Many EPC companies cut corners by avoiding safety aspects.

Rooftop system installation costs could also vary based on whether it’s for the commercial or residential sector, the industry’s power requirements, and the type of solar systems.

Normally, open access projects are ideal for consumers with a minimum power consumption of 300,000 kWh, equating to a 1.5 MW power project. A project below the capacity is considered unviable. Developers say that they analyze electricity bills, the number of working days, and annual electricity consumption to build a portfolio to assess the consumer’s needs. The project is developed after considering all these aspects.

Thangarajan said analyzing the type of business investing in open access projects is vital. “We need to consider the power requirements of the company. If they wish to relinquish the long-term agreements, it could lead to high penalties. While choosing a developer, consumers should also look at the availability of grid connectivity, land assets, and right of way. Many projects get stalled due to right-of-way issues.”

Alternatively, green power can also be procured from distribution companies or the Indian Energy Exchange.

Developers highlighted the importance of BESS in stabilizing the grid and providing flexibility to consumers. It can help avoid using diesel gensets, which cost around ₹30 (~$0.34391)/kWh. BESS will allow consumers to procure power at ₹11 (~$0.1261)/kWh during peak hours and ₹5 (~$0.05732)/kWh-₹6 (~$0.06878)/kWh at non-peak hours.

They further highlighted that hybrid/solar power projects with BESS can provide the highest return on investment, providing a 13-15% rate of return on equity. It could enable companies to save nearly ₹5 million (~$57,318)/MW annually on electricity costs.

They added that consumers must adopt solar and renewable energy on a war footing to benefit from low module prices. They said that module prices are expected to rise further, driving up project costs.

The next Mercom India C&I Clean Energy Meet event will be held in Mumbai on April 17, 2025.

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