India added 2.7 GW of solar open access capacity in the first quarter of 2026, up 55% quarter-over-quarter, according to the Q1 Mercom India Solar Open Access Market Report. The growth was supported by favorable policies, growing consumer interest, and improved project execution.

For Vishal Jain, Managing Director at August Energy India, open access will remain the primary route for large industrial consumers because rooftop solar is constrained by available space.

According to Jain, favorable open access policies, supported by expanding domestic manufacturing capacity and electricity demand, can drive growth in the C&I segment and strengthen India’s position in the global renewable energy market.

In an interview on the sidelines of the Mercom India Renewables Summit 2026, Jain discussed the growth of decentralized energy, the increasing role of battery storage, the emergence of integrated utility solutions, and the outlook for India’s solar manufacturing ecosystem.

Excerpts from the interview:

What are the biggest opportunities for decentralized energy in India over the next five years?

India is emerging as one of the world’s largest C&I energy markets. Policy support, particularly for open access, has been a major catalyst for the sector’s growth.

Compared with several other Asian markets, India has developed a conducive policy framework that enables C&I consumers to procure large-scale solar power from off-site or front-of-the-meter projects.

The shift toward domestic manufacturing may create some short-term challenges. However, over the long term, reducing dependence on external supply chains will strengthen the market and support sustained growth.

Will battery storage become the next major opportunity after rooftop solar installations?

Battery storage will be a value-accretive solution for large-scale solar projects. Historically, banking provisions allowed developers and consumers to treat the grid as an infinite battery, but that arrangement is not sustainable over the long term.

Recent policy changes in major industrial states indicate that the market is moving toward the direct integration of energy storage. Storage will become increasingly important as banking provisions are tightened and consumers seek to align renewable generation with their demand profiles.

What is driving C&I consumers to adopt renewable energy?

The two primary drivers are sustainable growth and cost savings. Even after recent policy changes requiring the use of domestically manufactured modules, consumers can continue to achieve meaningful savings as compared with grid tariffs.

C&I consumers can replace around 40% to 50% of their electricity requirements with clean energy sources. The availability of low-cost power at scale remains the strongest driver of renewable energy adoption.

Globally, the electrification of industrial heat is also creating additional demand for electricity. In markets such as China and Europe, industries are increasingly replacing coal-fired boilers with electric boilers. Such fuel substitution creates new demand and expands the addressable market for solar power.

Do you expect energy solutions to be increasingly offered as an integrated package?

August Energy operates as an integrated utility service provider for C&I consumers. The company offers power, cooling, heating, and energy-efficiency solutions as a bundled service.

Industrial consumers should not have to enter into separate contracts for electricity, heating, ventilation and air conditioning, and steam. These requirements can be combined under a single integrated contract, reducing costs while supporting the decarbonization of industrial facilities.

How do you see the integrated utilities market developing in India?

The market is still at a nascent stage, but the increased availability of impact capital is supporting the growth of integrated utility and energy-efficiency solutions.

Private capital played an important role in the development of India’s utility-scale solar sector and later supported the growth of the rooftop solar segment. Similarly, the availability of impact capital for integrated utilities and sustainable infrastructure is likely to drive the next phase of growth.

Will open access overtake rooftop solar segment in the C&I segment?

The rooftop solar segment faces limitations because of the restricted availability of usable roof space. Open access is therefore likely to remain the larger growth market for industrial consumers, provided grid evacuation infrastructure and distribution networks can accommodate additional capacity.

The rooftop solar segment will continue to be relevant for smaller installations and residential consumers. However, large industrial consumers seeking to replace a substantial share of their electricity demand will increasingly rely on open access projects.

How can changes in banking and time-of-day tariffs potentially affect the market?

The power sector can no longer rely on the grid as an unlimited storage resource. The market is undergoing a structural shift in which electricity consumption will need to align more closely with periods of renewable energy generation.

Time-of-day tariffs can encourage consumers to shift demand toward solar generation hours and away from peak-demand periods. This will also increase the importance of storage and demand-management solutions.

The transcript provided does not contain Jain’s complete response on the detailed impact of time-of-day tariffs, so further conclusions on this point cannot be drawn from the source.

Will accessible finance be a challenge for development of smaller battery storage projects?

Financial institutions are already lending to large-scale renewable energy and battery storage projects. What remains to be seen is whether lenders will be equally comfortable financing smaller storage systems required under emerging state-level regulations.

These projects have similar cash flow and revenue characteristics to other energy infrastructure assets. India’s strong fundamentals and infrastructure requirements should continue to attract capital, provided it is directed toward commercially viable projects.

Do you expect India’s electricity demand to increase significantly?

India’s manufacturing push is likely to drive a substantial increase in electricity demand. New manufacturing facilities for solar modules, cells, semiconductors, and electronics are highly power-intensive.

As these facilities begin operations over the next few years, industrial electricity consumption is expected to rise. Household demand will also increase as more consumers adopt air conditioners, refrigerators, and other electrical appliances.

Will energy-as-a-service become a major business model?

Energy-as-a-service will coexist with other commercial models rather than replace existing technologies or solutions.

The model allows service providers to deploy capital into existing infrastructure, including heating, ventilation and air conditioning systems, steam boilers, and energy-efficiency equipment. India requires significant capital to support infrastructure growth, and its strong economic fundamentals make it an attractive destination for such investment.

Can India develop an end-to-end solar manufacturing ecosystem over the next five years?

Government mandates and policy support are expected to accelerate the development of a domestic solar manufacturing ecosystem.

India has already established a sizeable module manufacturing base, supported in part by foreign capital. The next phase will involve scaling domestic solar cell manufacturing, followed by wafer and ingot production.

The success of domestic cell manufacturing will be a critical turning point. If the industry can establish reliable and competitive cell production capacity, the transition toward domestic wafer manufacturing will be the next major milestone.