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					</table>Higher retail tariffs in Maharashtra have spurred commercial and industrial (C&amp;I) consumers to opt for solar open access, helping them save up to 40% on electricity bills annually.
According to Mercom India’s <a href="https://www.mercomindia.com/product/q1-2023-mercom-india-solar-open-access-market-report-518-mw-installed" target="_blank" rel="noopener">Q1 2023 Mercom India Solar Open Access Market Report</a>, as of March 2023, the state had the country&#8217;s second-largest cumulative installed solar open access capacity of 1,037 MW, accounting for 12.5% of the total capacity.
During the first quarter of 2023, the state added 70 MW of solar open access capacity, up 6% quarter-over-quarter compared to about 66 MW in Q4 2022.
Metallurgical industries, information technology, and pharmaceutical companies were the state&#8217;s largest adopters of solar open access during Q1 2023. With a pipeline of 519 MW, Maharashtra is all set to witness more capacity additions in the following quarters.
Here are some important points to consider for C&amp;I consumers in Maharashtra intending to go for solar open access.
Electricity Cost Savings
A significant factor facilitating the growth of open access in the state is the high retail tariff, which is among the highest in the country. C&amp;I customers have shifted to the solar open access model to take advantage of lower energy costs and save on operating expenditure.
In April, the Maharashtra Electricity Regulatory Commission <a href="https://www.mercomindia.com/maharashtra-regulator-approves-18-hike-in-ci-consumer-tariff-for-fy24" target="_blank" rel="noopener">approved</a> raising the tariff for C&amp;I consumers for the current financial year (FY 2024).
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-1.png"><img loading="lazy" decoding="async" class="alignnone wp-image-56598 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-1.png" alt="Maharashtra Open Access-1" width="520" height="163" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-1.png 520w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-1-300x94.png 300w" sizes="(max-width: 520px) 100vw, 520px" /></a>
On average, C&amp;I customers in Maharashtra can save up to 30-40% on their electricity bills by opting for solar open access under a captive or group captive model.
According to Aditya Malpani, Regional Head-West, and Director, Open Access at <a href="https://ampin.energy/" target="_blank" rel="noopener">Ampin Energy Transition</a>, &#8220;The approximate savings for industrial customers is around ₹2 (~$0.024)/kWh, whereas, for commercial consumers, it is around ₹6 (~$0.073)/kWh under the captive or group captive model.&#8221;
Concurring with him, another leading open access developer said that a C&amp;I consumer in Maharashtra could easily save anywhere between ₹4.5 million (~$54,482)/MW and ₹5 million (~$60,535)/MW per year by opting for solar open access.
The table below shows savings for open access consumers in Maharashtra under the captive or group captive model.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-2.png"><img loading="lazy" decoding="async" class="alignnone wp-image-56600 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-2.png" alt="Maharashtra Open Access-2" width="549" height="323" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-2.png 549w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-2-300x177.png 300w" sizes="(max-width: 549px) 100vw, 549px" /></a>
The net landed cost for a captive or group captive project in Maharashtra is around ₹6.56 (~$0.080)/kWh.
Considering this, the savings for industrial customers come to around ₹1.56 (~$0.019)/kWh and around ₹6.27 (~$0.077)/kWh for a commercial unit.
Notably, the cross-subsidy surcharge is exempted for projects under the captive or group captive models, whereas the additional surcharge is ₹1.36 (~$0.017)/kWh.
Third-Party for Open Access  
The third-party model is not a viable option for C&amp;I consumers in Maharashtra due to the cross-subsidy surcharge, additional surcharge, and other fees.
The net landed cost for C&amp;I consumers under the third-party model comes to ~₹8.25 (~$0.10)/kWh.
Under the third-party model, commercial and industrial customers must pay ₹1.69 (~$0.021)/kWh as a cross-subsidy surcharge. They must also pay wheeling and state transmission charges, making it an unviable option.
C&amp;I consumers are also charged ₹1.36 (~$0.017)/kWh as an additional surcharge, rendering the model unfeasible for most.
While there are no benefits for industrial consumers under the third-party model, commercial consumers can still save ₹4.58 (~$0.056)/kWh under the model.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-3.png"><img loading="lazy" decoding="async" class="alignnone wp-image-56601 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-3.png" alt="Maharashtra Open Access-3" width="444" height="376" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-3.png 444w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-3-300x254.png 300w" sizes="(max-width: 444px) 100vw, 444px" /></a>
Return on Investment
Considering the savings and 26% equity share in captive and group captive projects, the return-on-investment period is very short, ranging from 8-12 months.
&#8220;An industrial consumer in Maharashtra can expect the return on investment within 10-12 months, considering the rates and the initial capital investment. On the other hand, a commercial consumer can expect to make the money back within 7-8 months,&#8221; the open access developer said.
Power Purchase Agreements 
In addition to the savings, industrial and commercial consumers should look into various other factors, such as understanding the basic open access charges, banking mechanisms, and guaranteed energy settlement.
&#8220;Choosing the right green open access partner is a crucial decision for open access consumers which can significantly impact their projects&#8217; success and long-term viability. Evaluating factors such as reliability, capacity, sustainability, pricing, contractual terms, technical expertise, and reputation is crucial. The developer should have strong financial backing to support their projects,&#8221; Malpani said.
&#8220;Contractual terms and policies, including contract duration, exit clauses, price escalation clauses, and provisions for flexibility in energy procurement, should be reviewed before signing the power purchase agreement (PPA). By examining these aspects, consumers can mitigate risks and ensure long-term stability in energy supply,&#8221; he added.
Compared to variable retail tariffs, consumers can benefit from long-term open access where the tariff remains the same for the entire period. This makes long-term open access (LTOA) an attractive alternative for C&amp;I consumers.
The chart below shows the year-over-year growth in the retail grid tariff as compared to the fixed PPA prices for open access solar.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-Updated-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-56689 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-Updated-1.png" alt="Maharashtra Open Access-Updated 1" width="618" height="365" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-Updated-1.png 618w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-Updated-1-300x177.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/Maharashtra-Open-Access-Updated-1-600x354.png 600w" sizes="(max-width: 618px) 100vw, 618px" /></a>
State Policies
The growth of open access in Maharashtra can also be attributed to the state&#8217;s supportive regulatory framework and efficient approvals by DISCOMs.
The state&#8217;s multi-year tariff gives stakeholders a long-term trajectory of open-access charges and assurance regarding their savings throughout the tariff order&#8217;s validity.
&#8220;Maharashtra has a significant C&amp;I market and one of the country&#8217;s highest retail tariffs, making green open access a popular source among these consumers. It has ample land and readily available transmission infrastructure to set up open access projects in the state. The state regulators have implemented energy settlement on a monthly basis with a banking charge of 2%. Also, it has a multi-year tariff framework allowing developers to make informed decisions on project planning and execution over the long term. Further, as per the Maharashtra State Energy Policy, there is an electricity duty waiver for renewable energy projects set up under a captive model until 2027,&#8221; Malpani noted.
&#8220;Coupled with timely permission for grant of open access, Maharashtra provides a conducive market for bulk energy consumers to meet green energy requirements and seamless growth for renewable energy developers looking to enter the C&amp;I market,&#8221; he said.
Mercom India will host the <a href="https://www.mercomindia.com/event/ci-clean-energy-meet-2023-chennai" target="_blank" rel="noopener">C&amp;I Clean Energy Meet</a> in Chennai on July 21 to bring together industry experts and C&amp;I consumers looking to save power costs to discuss various energy transition options.
Interested entities can register for upcoming events by sending an email to <a href="mailto:events@mercomindia.com" target="_blank" rel="noopener">events@mercomindia.com</a>.
To find out more about the upcoming events, click <a href="https://www.mercomindia.com/event" target="_blank" rel="noopener">here</a>.

High Tariffs in Maharashtra Drive Open Access Solar Adoption

The Madhya Pradesh Electricity Regulatory Commission (<a href="http://www.mperc.in/" target="_blank" rel="noopener noreferrer">MPERC</a>) has determined tariffs for low voltage (LV), high voltage (HV), and extra-high voltage (EHV) consumers in the state in its retail supply tariff order.
As per the order, electric vehicles (EV) and electric rickshaw charging stations are exempted from the tariff hike. The new tariffs will be applicable starting December 26, 2020, until further notice or the retail supply tariff order is announced.
The Commission said that distribution companies (DISCOMs) in the state had projected an annual revenue requirement (ARR) of ₹400.16 billion (~$5.4 billion) for the financial year (FY) 2020-21, with a revenue gap of ₹21.69 billion (~$295.5 million) ad have proposed to recover this gap through a 5.73% hike on existing tariffs.
Of this, the Commission said it allowed an ARR of ₹376.73 billion (~$5.1 billion) for FY 2020-21, with a revenue gap of ₹7.3 billion (~$99.5 million) at the existing tariff. Subsequently, it has allowed only a tariff hike of 1.98% across categories.
Other consumers excluded from tariff hikes include domestic consumers with a load lower than 100 watts and a monthly consumption of fewer than 30 units; low tension industries; temporary connections for social or marriage purposes and religious functions; and railway traction consumers.
Metering charges were also not allowed, and consumers are not required to pay meter rent. The Commission also set the tariff for agricultural consumers with a load of up to 10 HP at ₹750 (~$10)/HP annually. Agricultural consumers with a load higher than 10 HP will be charged ₹1,500 (~$20)/HP per annum.
The MPERC noted that rebates or incentives for prepaid metering, advance, prompt, and online bill payments would remain unchanged. Additionally, incentives on time of day (TOD) tariff, load, and power factor will also remain unchanged along with rebates on new and existing HT or EHT connections, captive power projects, railway traction, and open access consumers.
Last year, the Madhya Pradesh Power Management Company had <a href="https://mercomindia.com/madhya-pradesh-ev-charging-tariff/" target="_blank" rel="noopener noreferrer">proposed</a> the tariff for electric vehicles and electric rickshaw charging infrastructure in the state. For low-tension consumers, it was set as ₹6 ($0.086), and for high-tension, the tariff was ₹5.90 ($0.072).
Earlier this year, the government <a href="https://mercomindia.com/guidelines-revised-ev-charging-infrastructure/" target="_blank" rel="noopener noreferrer">revised</a> its guidelines for EV charging infrastructure, which specified that the tariff for the supply of electricity to the EV public charging stations should not be more than 15% of the average cost of supply of power.
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Image credit: Unsplash

Madhya Pradesh Exempts EVs and E-Rickshaw Charging Stations from Tariff Hike

Amplus Energy Solutions, a rooftop solar company, has joined forces with Big Basket, an online grocery retailer, to deploy renewable energy installations at its various premises in the country.
As per their partnership, Amplus will install 1.4 MW of rooftop solar systems at 12 Big Basket facilities across four states in the country, namely Haryana, Maharashtra, Uttar Pradesh, and Tamil Nadu.
“Online grocery sector in India is moving very rapidly with a highly competitive market. We have experienced rapid growth over the last few years which will continue going forward. For us, adopting solar power was always a natural choice for not to just reduce our energy costs but also to ensure our carbon footprint is offset by this initiative, we will continue to follow green ways to grow our business,” Ramesh V.S., co-founder of Big Basket said.
This partnership will help Big Basket generate approximately 310,64,120 units of green electricity, which will aid in the mitigating around 29,440 metric tons of carbon dioxide over a twenty-year duration.
“Solar sector in India is growing at a rapid pace, and Big basket as a leader in online grocery market will set the benchmark for other companies in the segment to follow environmentally conscious way for growth. With this partnership, Big Basket will be able to reduce their carbon dioxide emissions to a large extent,” said Sanjeev Aggarwal, CEO &amp; MD, AmplusSolar.
Recently <a href="https://mercomindia.com/india-e-commerce-industry-rooftop-solar/" target="_blank" rel="noopener noreferrer">Mercom</a> reported about the <a href="https://mercomindia.com/india-e-commerce-industry-rooftop-solar/" target="_blank" rel="noopener noreferrer">opportunity for rooftop</a> solar installations in the e-commerce industry in India. India’s e-commerce industry is expected to surpass the U.S. to become the second largest e-commerce market in the world by 2034.
Large e-commerce companies are including renewables in their corporate social responsibility and sustainability adoption plans. The e-commerce industry is still a small fraction of the rooftop space, accounting for approximately 1% to 2% of the total rooftop capacity installed in the country. In the future, e-commerce is expected to garner a bigger slice of the pie in terms of installed rooftop capacity.
Last year, <a href="https://www.amazon.in/" target="_blank" rel="noopener noreferrer">Amazon India</a>, a global e-commerce giant, <a href="https://mercomindia.com/amazon-india-rooftop-solar-seven-facilities/" target="_blank" rel="noopener noreferrer">had announced</a> that it would set up 8,000 kW of rooftop solar installations by the end of the year at its fulfillment centers and sorting facilities across the country.
Moreover, <a href="http://www.wal-martindia.in/" target="_blank" rel="noopener noreferrer">Walmart India</a>, a wholly-owned subsidiary of Walmart Inc, had also <a href="https://mercomindia.com/walmart-india-rooftop-solar-1-stores/" target="_blank" rel="noopener noreferrer">announced</a> that it was planning to incorporate sustainable sources such as solar energy, water harvesting, and recycling to run its stores in the country.

Online Grocery Retailer Big Basket to Install 1.4 MW of Rooftop Solar Systems

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