A field guide to commercial solar in India

Solar farms in India.

Every meaningful way to set up a solar farm in India today — from a 3 kW rooftop on your home to a 500 MW utility plant. One slide per setup type, written for people new to the industry, with each acronym explained inline as it appears.

14 setup types · rooftop · captive · tender · bilateral · utility 17 slides · navigate with the ‹ / › buttons or use a clicker
01 / 17

All fourteen at a glance

Fourteen ways. One table.

Each row maps to a slide that follows. Tariff bands and capacity ranges are indicative for India in 2026; actual numbers vary by state, scheme tranche, and tender outcome. The "best for" line names the audience the structure typically suits.

#Setup typeCapacity rangeTariff / value (₹/kWh)Best for
1Residential Rooftop (PM Surya Ghar)1–10 kW~6–9 (avoided retail)Homeowners
2C&I Rooftop Net Metering10 kW – 5 MW6.70–9 (avoided retail)Factories, warehouses, hospitals
3Gross Meteringup to 1 MW2.20–2.85Roof owners with very low daytime load
4Group / Virtual Net Metering< 1 MW~6–9 (avoided retail at participants)Housing societies, multi-site C&I
5Single-User Captive250 kW – 50 MW~2.50–3.00 (own LCOE)Large industrial / IT consumers
6Group Captive500 kW – 30 MW3.50–4.50Mid-MW developer + an industrial anchor
7PM-KUSUM Component A500 kW – 2 MW2.74–3.13Rural developers near a 33/11 kV substation
8PM-KUSUM Component B (solar pumps)1–7.5 HPn/a (own use)Off-grid farmers replacing diesel pumps
9PM-KUSUM Component C (feeder)1.6 – 25 MW2.40–3.00Mid-size developers, agricultural-load DISCOMs
10State DISCOM tenders (MSKVY 2.0)500 kW – 25 MW2.40–3.10Developers in MH, MP, TS with state-resident land
11Open Access Bilateral C&I PPA500 kW – 50 MW3.20–4.50 (gate)Developers without an equity-anchor; C&I buyers
12SECI / State RESCO Rooftop85 kW – 1.2 MW2.97–3.15Developers willing to host on government buildings
13Utility-Scale IPP50 MW – 1 GW+2.30–3.50Large balance-sheet IPPs; institutional capital
14Behind-the-Meter (BTM)100 kW – 5 MW6.70–9 (avoided retail)Developers seeking highest per-kWh value

Acronyms used throughout: kWh (kilowatt-hour, one unit of electricity), kW (kilowatt = 1,000 W), MW (megawatt = 1,000 kW), GW (gigawatt = 1,000 MW), DISCOM (Distribution Company — state-licensed utility owning the local low-voltage wires), PPA (Power Purchase Agreement), SPV (Special Purpose Vehicle, a project-only company), RE (Renewable Energy). Every other acronym is defined inline on the slide where it first appears.

02 / 17

Self-consumption · Residential

Residential rooftop — a 1–10 kW system on your home, with a central subsidy of up to ₹78,000.

PM Surya Ghar Muft Bijli Yojana, launched in 2024 by the central government, aims to put rooftop solar on 1 crore Indian households. The system feeds your home first; surplus is credited back to the local DISCOM bill at retail-equivalent settlement.

The concept and the cast

The owner is the homeowner. The installer is a vendor empanelled by the state DISCOM (the distribution company that owns the local low-voltage wires). The off-taker is the homeowner's own load — the solar power offsets what they would otherwise import from the grid. Surplus exported during the day flows back to the DISCOM under Net Metering (a settlement rule that nets daytime exports against night-time imports, with leftover units carried as monthly credits).

The Ministry of New and Renewable Energy (MNRE) pays the central financial assistance directly into the homeowner's bank account; many states add a top-up state subsidy. Income from a residential rooftop is tax-exempt. Typical roof footprint: 1 kW = 10 m² of usable south-facing surface.

Execution steps

  1. Apply on the National Portal at pmsuryaghar.gov.in with Aadhaar, electricity-bill consumer number, and roof photos.
  2. Pick a DISCOM-empanelled vendor from the portal's list.
  3. Vendor surveys the roof, sizes the array, and files the technical feasibility report with the DISCOM.
  4. DISCOM grants approval; vendor installs (typically 4–8 weeks).
  5. DISCOM commissions a bidirectional meter that records both export and import.
  6. Subsidy is credited to your bank account 30–60 days after commissioning.
  7. Monthly bill drops by 80–95% from day one; in many cases reaches zero or negative for 8 months a year.
Capacity: 1–10 kW  ·  Cost (post-subsidy): ₹30–55 K per kW  ·  Subsidy: 60% on first 2 kW + 40% on next 1 kW, capped at ₹78,000  ·  Tariff value: avoided retail rate ₹6–9/kWh  ·  Payback: 4–6 years  ·  Best for: any household with a south-facing roof and a daytime electricity load (refrigerator, AC, washing machine).
03 / 17

Self-consumption · Commercial & Industrial

C&I rooftop net metering — up to 500 kW in most states, 5 MW in Maharashtra, capped at the consumer's sanctioned load.

Same idea as residential rooftop, but on a factory, warehouse, hospital, or office. The array sits on the consumer's premises and feeds their own load first; surplus exports earn credits via the DISCOM's net-metering settlement.

The concept and the cast

The owner is the C&I consumer. They commission the array under a CAPEX model (they pay upfront and own the asset, claiming accelerated depreciation as a tax shield) or a RESCO model (a third-party developer pays upfront, owns the asset, and sells power to the host at a long-term tariff — RESCO stands for Renewable Energy Service Company). The system connects through the consumer's existing service connection.

Daytime generation offsets the consumer's own load at retail tariff. Surplus is credited at the DISCOM's lowest power-purchase reference rate (~₹2.20–2.85/kWh, far below retail). The economic value is therefore dominated by avoided retail tariff (₹6.70–8.90/kWh for HT-Industry, ₹8–11 for HT-Commercial). CSS (Cross-Subsidy Surcharge), AS (Additional Surcharge), wheeling, and banking charges are all exempt for net-metered consumption.

Execution steps

  1. Decide between CAPEX and RESCO. CAPEX gives ownership and depreciation benefit; RESCO gives zero-capex and a long-tenure tariff with no asset risk.
  2. Hire an EPC (Engineering, Procurement, Construction firm) and book a structural survey of the roof.
  3. Apply for the net-metering connection with the DISCOM; submit a Single Line Diagram, structural drawings, and equipment data sheets.
  4. DISCOM issues feasibility approval (typically 15–45 working days).
  5. EPC builds the system; commissions the bidirectional net meter.
  6. DISCOM seals the meter and signs the 25-year net-metering agreement.
  7. Power flows; bills track avoided retail consumption and monthly credit settlement.
Capacity cap: 500 kW (TS, MP, KA, TN…) or 5 MW (Maharashtra) or sanctioned load, whichever is lower  ·  System cost: ₹38–55 K per kW  ·  Effective tariff value: ₹6.70–9/kWh (avoided retail)  ·  Tenure: 25 years  ·  Best for: factories, warehouses, hospitals, offices with high daytime electricity load.
04 / 17

Grid sale · DISCOM offtake

Gross metering — sell every unit to the DISCOM at the lowest PPA rate, then buy retail like before.

The opposite of net metering: instead of offsetting your own electricity bill, you sell the entire output to the DISCOM at a fixed wholesale rate, and continue paying full retail for every unit you import.

The concept and the cast

The owner is the consumer (or a third party who installed on the consumer's roof). The off-taker is the DISCOM. A second meter records total generation and is settled monthly at the DISCOM's lowest APPC (Average Pooled Power Purchase Cost — the weighted average of all the power-purchase contracts the DISCOM has signed). For most states APPC lands in the ₹2.20–2.85 per unit band.

The consumer's import meter is unchanged — they continue to pay normal retail tariff for every unit they consume from the grid. Why use this instead of net metering? Three common reasons: (a) the state caps net metering at small capacities, (b) the array is much larger than the consumer's daytime load (so a net-metering surplus at low APPC would be the dominant revenue anyway), or (c) the consumer wants the simpler, cleaner billing that gross metering offers.

Execution steps

  1. Decide the array size relative to the consumer's daytime load.
  2. Apply for a gross-metering connection with the DISCOM.
  3. Submit Single Line Diagram, structural drawings, equipment specs.
  4. DISCOM grants approval, allocates a generation meter and the APPC tariff.
  5. EPC builds; gross meter is sealed.
  6. Sign the 25-year gross-metering PPA with the DISCOM.
  7. Monthly: DISCOM credits APPC × units generated; consumer pays full retail on imports.
Capacity cap: typically up to 1 MW (state-dependent)  ·  Tariff value: ₹2.20–2.85/kWh (APPC)  ·  Tenure: 25 years  ·  Best for: roof owners whose own load is very low or whose state caps net metering capacity below their array size.
05 / 17

Self-consumption · Multi-meter sharing

Group / Virtual net metering — one rooftop array credits multiple meter connections.

A way to share the output of a single solar array across several electricity meter connections in the same DISCOM area, without physically wiring them together. Useful when the host roof is bigger than the host's own load, or when several meters could share generation.

The concept and the cast

Group Net Metering lets the same owner with multiple service connections (a multi-warehouse logistics company, a chain of retail stores, a campus with separate metering for hostel, classroom, and admin block) install one large array on the highest-roof site and have the surplus credited to the other connections. Virtual Net Metering extends this to different owners — a typical use is a housing society where each flat has its own meter, but the rooftop array is shared.

Both flavours preserve the avoided-retail value of net metering but route credits to remote meters. Wheeling charges (a per-unit fee for using the local distribution network) and wheeling losses apply on the credit side. Banking and CSS/AS are typically exempt up to a state-level rooftop solar capacity threshold (e.g. 5 GW in Maharashtra). Maharashtra and Telangana actively support both flavours; Madhya Pradesh supports group net metering primarily.

Execution steps

  1. Identify the participating meters and the host roof.
  2. Get an NOC (No-Objection Certificate) from each participant authorising them to receive credits.
  3. Apply via the DISCOM's group/virtual NM portal with all meter numbers.
  4. DISCOM allocates credit-share percentages on the agreement (typically locked annually).
  5. EPC builds and commissions the array on the host roof.
  6. Bidirectional meter at host; participating meters receive credit allocations on their bills.
  7. Annual reconciliation; carry-forward of unused credits.
Capacity: typically < 1 MW (state-dependent)  ·  Tariff value: avoided retail at participants' premises  ·  Tenure: 25 years  ·  Best for: housing societies, multi-site C&I owners, education campuses, government complexes.
06 / 17

Captive structure · Single-consumer

Single-user captive — one consumer owns 100% of the SPV, consumes 100% of the power, exempt from CSS+AS.

A captive structure where one industrial / commercial buyer is also the developer. They form an SPV (Special Purpose Vehicle, a project-only company), build a solar plant, and consume its entire output to displace their grid bill.

The concept and the cast

The captive consumer (a steel mill, a textile cluster, a data centre, an IT campus) owns 100% of the SPV. The plant can sit on their land (behind-the-meter) or off-site with the power wheeled over the DISCOM's grid. Critically, captive consumption is exempt from CSS (Cross-Subsidy Surcharge — a per-unit fee on Open Access consumers to recover the DISCOM's stranded fixed costs from generation contracts assumed when those consumers were retail) and AS (Additional Surcharge — for legacy generation contracts). Combined, the exemption is worth ₹1.50–3.00 per unit depending on state and consumer category.

The Electricity (Amendment) Rules 2026 (in force from 1 April 2026) clarified the proportionality and verification regime: the captive entity must consume ≥51% of the plant's generation each year, verified annually. Failing the test retroactively converts the project to ordinary Open Access for that year, triggering CSS and AS on the entire year's generation.

Execution steps

  1. Form the SPV (Pvt Ltd or LLP — Limited Liability Partnership).
  2. Acquire land — lease or purchase, on or off the consumer's premises.
  3. File the captive status declaration with the SERC (State Electricity Regulatory Commission).
  4. Apply for DISCOM connectivity and Open Access registration (for off-site captive).
  5. Procure EPC; build the plant (typically 8–14 months).
  6. Commission, declare COD (Commercial Operation Date), connect to the grid.
  7. File the captive declaration annually with the SERC, demonstrating ≥51% consumption.
Capacity: 250 kW – 50 MW  ·  Effective tariff: own LCOE (~₹2.50–3.00/kWh post-debt-service)  ·  Tenure: 25 years (asset life)  ·  Best for: large industrial consumers with a steady daytime load, balance-sheet to fund the equity, and an appetite for direct asset ownership.
07 / 17

Captive structure · Multi-consumer

Group captive — anchor takes ≥26% equity and consumes ≥51% of generation; both sides exempt from CSS+AS.

A captive structure that lets multiple consumers share one project. The two thresholds — 26% equity ownership and 51% consumption — are set by the central Electricity Rules to define a legal Group Captive Generating Plant (GCGP).

The concept and the cast

The developer (a renewable-energy IPP or a financial sponsor) holds up to 74% equity. The captive consumers collectively own ≥26%, with at least one anchor user typically holding 26% individually. Each captive user contracts an offtake share that adds up to ≥51% of annual generation. The remaining ≤49% can be sold to other captive users or to a licensee.

The Electricity (Amendment) Rules 2026 clarified that the 26%/51% test is at AoP (Association-of-Persons) aggregate level, with anchor users above 26% exempt from individual proportionality — a relief for projects with one big anchor and several small users. CSS+AS exemption applies to the ≥51% captive flow. The structure is governed by a Shareholders' Agreement (SHA) and a long-term Captive PPA.

Execution steps

  1. Source an anchor consumer with a steady daytime load (~600 MWh/yr or more for a 500 kW project).
  2. Form the SPV (Pvt Ltd recommended for IREDA / SBI debt).
  3. Anchor subscribes 26% equity; founders or developer hold 74%.
  4. Sign the Captive PPA between SPV and the captive consumer(s).
  5. File the captive declaration with the SERC.
  6. Apply for DISCOM connectivity, Open Access registration; build, commission, COD.
  7. Annual proportionality audit and CSS-exemption claim.
Capacity: 500 kW – 30 MW  ·  Gate tariff: ₹3.50–4.50/kWh  ·  Tenure: 25 years  ·  Best for: a developer with capital and an industrial network, plus consumers willing to take a 26% equity position to lock in cheap, stable power.
08 / 17

DISCOM PPA tender · Central scheme

PM-KUSUM Component A — 500 kW to 2 MW decentralized solar farms; DISCOM signs a 25-year PPA at ₹2.74–3.13/kWh.

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan, the central government's farmer-energy scheme) Component A funds small ground-mount solar farms on barren or fallow land within ~5 km of an 11 kV or 33 kV substation.

The concept and the cast

The bidder is typically a farmer, FPO (Farmer Producer Organisation), WUA (Water Users' Association), Panchayat, or rural entrepreneur. The DISCOM is the off-taker — it signs a 25-year PPA at the SERC-set feed-in tariff. The state nodal agency (MEDA in Maharashtra, MPUVN in MP, TGREDCO in Telangana) runs the tender process, allocates substation capacity slots, and serves as the single window. The land can be developer-owned, leased from a farmer, or community-owned.

Phase 1 sunset was 31 March 2026; financial closure for already-allocated projects has been extended to 30 September 2026 and commissioning to 31 March 2027. PM-KUSUM 2.0 has been announced for FY 2026–27 with a focus shift to feeder-level solarisation; whether the 500 kW–2 MW slot survives in Phase 2 is pending notification. As of mid-2025, only ~6% of the 10 GW Phase-1 target had been commissioned.

Execution steps

  1. Identify barren/fallow land within 5 km of a 33 kV or 11 kV substation.
  2. Confirm with the DISCOM that the substation has an open evacuation slot.
  3. Bid in the state nodal agency's tender; submit land documents, DPR (Detailed Project Report), and financial qualifications.
  4. Receive LoA (Letter of Award) from the nodal agency.
  5. Execute the 25-year PPA with the DISCOM within 30–90 days.
  6. Achieve financial closure within 6–9 months (debt sanctioned).
  7. Build the plant (8–14 months); achieve COD within 12–18 months of LoA.
  8. Begin feed-in-tariff billing from the COD onwards.
Capacity: 500 kW – 2 MW  ·  Tariff: ₹2.74–3.13/kWh (SERC-set, state-specific)  ·  Tenure: 25 years  ·  Best for: rural entrepreneurs, FPOs, and small developers with land near a substation in solar-rich states.
09 / 17

Off-grid · Solar pumps

PM-KUSUM Component B — 1 to 7.5 HP standalone solar pumps for off-grid farmers, with 60% central + 30% state subsidy.

Replaces diesel-pump irrigation with a self-contained solar pumpset. The plant has no grid connection and no metering; the pump simply drives water directly while the sun shines.

The concept and the cast

The end customer is the farmer. The product is a 1 HP to 7.5 HP solar pumpset comprising a solar PV array, a DC pump (or AC pump with a controller-inverter), and the mounting structure. There is no grid feed and no metering — the farmer uses the pump for daytime irrigation, and that's the entire system.

Funding: 60% from the central government, plus a state-government top-up of up to 30% (varies by state), with the farmer's contribution at 10–20% of system cost. The farmer's share is often financed via a Kisan Credit Card loan. The vendor must be empanelled by the state nodal agency. The scheme has commissioned around 4 lakh pumps to date and is the most-deployed component of PM-KUSUM by unit count.

Execution steps

  1. Farmer applies on the state's PM-KUSUM portal with land record (Khasra), Aadhaar, bank details, and existing electricity connection details.
  2. Verification by the state agency.
  3. Subsidy approval and e-bidding allocation to a vendor.
  4. Vendor surveys the field, sizes the pump per the cropping pattern and water-table depth.
  5. Vendor procures the pumpset; installs and commissions (4–8 weeks).
  6. Farmer pays his/her 10–20% share before installation; subsidy disbursed by state to the vendor.
  7. Warranty: 5 years on the pump, 25 years on the panels.
Capacity: 1–7.5 HP (~1–10 kW solar)  ·  Subsidy: 60% central + up to 30% state  ·  Cost to farmer: 10–20%  ·  Best for: farmers with 1–5 acres dependent on diesel-pump irrigation, or those with no nearby electricity grid or rationed agricultural supply.
10 / 17

Distributed grid · Feeder-level

PM-KUSUM Component C — solarize the 11 kV agricultural feeder so farmers get solar power during the day.

Connects a solar plant directly to the 11 kV feeder that supplies a cluster of farmers' pumps. The feeder is "solarised" — meaning that during sunlight hours, the farmers' irrigation pumps draw from solar instead of from the central grid.

The concept and the cast

The implementing agency is the DISCOM. It builds — or contracts a developer to build — a solar plant of capacity matched to the feeder's daytime load, connected at the 11 kV bus. The DISCOM's incentive is freeing up baseload capacity that is otherwise consumed by subsidised agricultural connections during the day.

Farmers see an improvement in supply quality (steady daytime power instead of erratic 8-hour rotation), with no change to their billing. The component has two flavours: Component C (FLS) — Feeder-Level Solarisation, used in Maharashtra and Madhya Pradesh; and Component C (IPS) — Individual Pump Solarisation, used in some other states. Tariffs cleared in MP's SMKFY (Krishi Mitra Surya Feeder Yojana, the state KUSUM C analogue) at ₹2.40–2.85/kWh for 4,022 MW signed in 2024–25.

Execution steps

  1. State DISCOM identifies an agricultural-load-heavy 11 kV feeder.
  2. Sizes the solar plant (1.5–25 MW typical for FLS).
  3. Issues tender to developers via the state nodal agency.
  4. Bidder wins on tariff, signs PPA with the DISCOM.
  5. Land arrangement (developer's land or DISCOM-allocated common land near the feeder).
  6. Financial closure, build, commissioning, COD.
  7. DISCOM operates the solarised feeder; farmers see better daytime supply with no change to their bills.
Capacity: 1.6 MW – 25 MW per substation/feeder  ·  Tariff: ₹2.40–3.00/kWh  ·  Tenure: 25 years  ·  Best for: medium developers (5+ MW), and DISCOMs aiming to free up baseload capacity from agricultural daytime demand.
11 / 17

State scheme · DISCOM PPA tender

State DISCOM tenders (MSKVY 2.0 & analogues) — state-run KUSUM analogues with their own tariffs and capital subsidies.

States that hit the limits of central PM-KUSUM allocations have launched their own programmes that mirror its design but with state-specific incentives layered on. Each programme has its own tender calendar, capacity ladder, and subsidy formula.

The concept and the cast

Maharashtra's flagship is MSKVY 2.0 (Mukhyamantri Saur Krishi Vahini Yojana 2.0) — a 0.5 MW to 25 MW per-substation programme run by MSEDCL (the state DISCOM) with a 30% capital subsidy (capped at ₹1.05 crore per MW) and a GBI (Generation-Based Incentive) of ₹0.25/kWh for the first 3 years post-COD. Tariffs cleared at ₹2.81–3.10/kWh in March 2025 auctions. MILSY (Maharashtra Innovative Laghu-Udyog Saur Yojana) is a 400 MW MSME-targeted RESCO programme.

Madhya Pradesh runs SMKFY for feeder solarisation (state KUSUM C analogue, 4,022 MW signed). Tamil Nadu has its own state KUSUM derivative. Telangana runs TGREDCO-led 4,000 MW KUSUM-A tenders. The off-taker is the DISCOM in each case; the bidder is a private developer. The economics depend almost entirely on whether the project is bid-eligible for the capital subsidy + GBI stack.

Execution steps

  1. Track the state nodal agency's tender calendar (MEDA, MPUVN, TGREDCO, TANGEDCO).
  2. Match capacity slot to your land + substation availability.
  3. Submit bid (technical + financial); pay the EMD (Earnest Money Deposit).
  4. Win allocation; sign 25-year PPA with the DISCOM.
  5. Achieve financial closure within scheme-defined window.
  6. Build, commission, COD.
  7. Claim capital subsidy and GBI disbursement post-COD per scheme rules.
Capacity: 500 kW – 25 MW  ·  Tariff: ₹2.40–3.10/kWh  ·  Subsidies: 30% capex (MSKVY 2.0) + GBI ₹0.25/kWh × 3 yr  ·  Tenure: 25 years  ·  Best for: developers with state-resident land, willing to navigate state-specific tender cycles and post-COD subsidy claims.
12 / 17

Bilateral PPA · Open Access

Open Access bilateral C&I PPA — sell directly to an industrial buyer over the DISCOM's wires.

A direct contract between the solar developer and a commercial / industrial consumer. The power flows over the DISCOM's transmission and distribution network under Open Access rules; the consumer pays the developer a gate tariff and the DISCOM the wheeling/transmission stack.

The concept and the cast

The structure is governed by the Green Energy Open Access Rules 2022 (which lowered the eligibility threshold to 100 kW of contract demand, well below the legacy 1 MW for normal Open Access). The developer sells; the C&I buyer signs a 10–25 year PPA at a negotiated gate tariff (₹3.20–4.50/kWh for solar in 2025–26).

The DISCOM applies a layered cost stack on top: wheeling charges (~₹0.20–0.30/kWh, for using the local distribution network), transmission charges (~₹0.15–0.25), CSS (₹0.70–2.15 depending on state and consumer category), AS (₹0–1.20), banking charges, and standby. The all-in landed cost for the buyer is ₹4.50–6.50/kWh typically; in MP's "Green Zone" corridors, CSS is waived and electricity duty is exempt for 7 years, dropping the landed cost meaningfully. There is no equity dilution — the buyer is purely a counterparty, not a co-owner.

Execution steps

  1. Source an industrial buyer with HT contract demand 100 kW+ in the same DISCOM area.
  2. Negotiate gate tariff and PPA term (typical 10–25 years with 1–3% annual escalation).
  3. Form the developer SPV; secure land and a financial model that clears the IRR threshold.
  4. Apply for Open Access approval with the SLDC (State Load Despatch Centre).
  5. Build the plant; commission and energise.
  6. Monthly scheduling, banking and forecasting via a SECI-empanelled trader-member.
  7. 25-year monthly settlement.
Capacity: 500 kW – 50 MW  ·  Gate tariff: ₹3.20–4.50/kWh; landed cost ₹4.50–6.50/kWh for buyer  ·  Tenure: 10–25 years  ·  Best for: developers without an equity-anchor partner, and C&I buyers who want green power but won't take equity.
13 / 17

RESCO model · Rooftop · Government tender

SECI / State RESCO rooftop — third-party developer installs on government roofs at zero capex to the host.

SECI (Solar Energy Corporation of India) and several state agencies run periodic tenders for rooftop solar on central / state government buildings. The bidder takes on the entire CAPEX, owns the asset, and signs a long-term PPA with the building owner.

The concept and the cast

SECI (Solar Energy Corporation of India — the central public-sector implementation agency for renewables under MNRE) runs Rooftop Tranches periodically. Tranche VIII results were announced 25 April 2026 (5,665 kW awarded across 14 government buildings); Tranche IX bidding closed 14 May 2026 (4,455 kW across India). State agencies (TGREDCO, MEDA, MPUVN) run parallel state-level rooftop programmes.

The bidder takes on the entire CAPEX, owns the asset, and recoups via a 25-year PPA with the host (a school, hospital, government office, university). The host pays per-unit consumed, typically below their existing retail tariff. This is the RESCO model (Renewable Energy Service Company). Tariffs in Tranche VIII cleared at ₹2.97–3.15/kWh; the L1 (lowest bidder) was ₹2.97/kWh by Mateshwari Bus Operations on 1.2 MW. Slot sizes range 85 kW to 1,200 kW per host site.

Execution steps

  1. Get empanelled with SECI as a bidder (track record, financial qualifications).
  2. Track the SECI Rooftop Tranche calendar.
  3. Bid on a Tranche; submit technical, financial, and EMD (Earnest Money Deposit).
  4. Win allocation; sign the 25-year PPA with the host government building.
  5. Get the host's structural NOC for the roof.
  6. Build the system; commission within the Tranche-defined window (7–9 months).
  7. Billing flows: host pays the developer per-unit consumed; developer maintains the asset for the PPA tenure.
Capacity: 85 kW – 1,200 kW per host site  ·  Tariff: ₹2.97–3.15/kWh  ·  Tenure: 25 years  ·  Best for: EPC-grade developers with capital, willing to commit to multi-year low-margin O&M on government buildings.
14 / 17

Utility-scale · Wholesale market

Utility-scale IPP — 50 MW to 1 GW+ solar parks under SECI / state competitive tenders.

The largest solar projects in India. An IPP (Independent Power Producer) wins a competitively-bid tender, builds a multi-hundred-MW solar park, and sells the entire output wholesale to SECI or a state DISCOM at a fixed long-term tariff.

The concept and the cast

The bidder is a large RE developer (Adani Green, ReNew Power, Tata Power Renewables, Avaada, Azure Power, Greenko, JSW Neo Energy, ACME Solar, Hero Future Energies). The tender authority is SECI for inter-state sales (SECI then signs onward Power Sale Agreements with state DISCOMs) or a state nodal agency for intra-state schemes.

Tariffs cleared at ₹2.30–2.80/kWh for plain-vanilla solar in 2024–25; solar+storage hybrid tenders (which include a 4-hour battery energy storage system to firm up the dispatch profile) are clearing at ₹3.00–3.50/kWh. Project equity is typically 25–30%; debt comes from international DFIs (IFC, ADB), domestic infrastructure debt funds, or banks. ISTS (Inter-State Transmission System) charge waivers were full for projects commissioned by 30 June 2025; the waiver phases out over the next three years (25% levy 1 July 2025 – 30 June 2026, ramping to 100% by 30 June 2028).

Execution steps

  1. Pre-qualify with SECI / state nodal agency (track record, balance-sheet, technical capability).
  2. Bid on a tender (reverse auction).
  3. Win; sign 25-year PPA with SECI; SECI signs on-sale PSA with state DISCOMs.
  4. Land aggregation (1,500–2,000 acres for a 500 MW plant).
  5. Financial closure (₹1,500–3,000 cr typical for 500 MW).
  6. EPC contracting, equipment procurement (modules, inverters, mounting structures, cabling, transformers).
  7. Build (typically 18–24 months for 500 MW).
  8. Commissioning, COD; 25-year tariff stream.
Capacity: 50 MW – 1+ GW  ·  Tariff: ₹2.30–2.80 (solar) / ₹3.00–3.50 (solar+storage)  ·  Tenure: 25 years  ·  Best for: large balance-sheet IPPs with execution and capital-raising muscle.
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Behind-the-meter · On-site

Behind-the-Meter (BTM) — solar array on the consumer's land or roof, sells at avoided-retail rate.

A third-party developer installs the array on the consumer's premises. The plant feeds the consumer's load directly behind their service meter, displacing retail-tariff imports. Highest per-unit value in the deck, but capacity is capped to one site's daytime load.

The concept and the cast

The developer owns the asset; the consumer hosts it on their land or roof under a long-term lease. The developer sells the power to the consumer at a tariff close to their avoided retail rate (₹6.70–8.90/kWh for HT-Industry in MP, similar in other states). Surplus exported during the day (when the consumer's load drops below generation) is sold to the grid at the APPC (Average Pooled Power Purchase Cost) of ₹4.00–4.50/kWh.

The structure is sometimes called a PPA model or OPEX model, distinguishing it from the consumer-owned CAPEX model. Plant capacity is typically capped at ~80% of the consumer's daytime load — beyond that, surplus exports collapse the project IRR. The consumer effectively vetoes operational decisions because the array is on their site, and host insolvency strands the asset. The reward for taking that concentration risk is the highest per-kWh tariff of any setup type in this guide.

Execution steps

  1. Find a host with predictable daytime load 600 MWh/yr+ for a 500 kW project.
  2. Sign a 25-year roof-or-land lease + energy supply agreement.
  3. Form the developer SPV.
  4. Apply for rooftop net-metering or a behind-the-meter connection with the DISCOM.
  5. Build, commission, energise.
  6. Monthly billing: meter reading × tariff defined in the PPA.
  7. Annual settlement of any surplus exported to the grid at APPC.
Capacity: 100 kW – 5 MW  ·  Tariff: ₹6.70–9/kWh (avoided retail); surplus at ₹4.00–4.50/kWh  ·  Tenure: 25 years  ·  Best for: developers seeking the highest per-kWh value, with a host already willing to commit a 25-year lease.
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How to pick

Three questions narrow the fourteen ways to one.

There is no single "best" setup. The right one depends on your scale, your land or roof situation, and who you can sell the power to. The questions below cut the decision tree quickly.

Question 1 · Scale

How big are you?

Residential (≤ 10 kW): rooftop with PM Surya Ghar.

Small commercial (10–500 kW): rooftop net metering or BTM.

Mid-scale (500 kW – 2 MW): Group Captive, KUSUM-A, MSKVY, or Open Access.

Large (> 5 MW): Open Access, state tender, or utility IPP.

Question 2 · Site

Do you have a roof, or land?

Roof on a consumer's premises: rooftop net metering or BTM.

Bare land near an 11/33 kV substation: KUSUM-A, MSKVY, Open Access, or feeder-level Component C.

Bare land far from substations or in another state: utility IPP under SECI tender.

No site at all, just capital: SECI RESCO Rooftop on government buildings.

Question 3 · Buyer

Who buys the power?

Yourself: rooftop self-consumption or single-user captive.

An industrial neighbour with daytime load and equity appetite: Group Captive.

An industrial neighbour without equity appetite: Open Access bilateral PPA or BTM.

The state / a DISCOM: KUSUM, SECI, MSKVY, or utility-scale IPP.

The 2026 centre of gravity

Most projects in the sub-MW commercial segment in 2026 are either Group Captive (best gate tariff if an anchor exists) or Open Access bilateral PPA (lighter governance, slightly lower IRR). At the residential end, PM Surya Ghar is dominant with the ₹78,000 subsidy. Above 5 MW, the centre of gravity shifts to state DISCOM tenders and utility IPP. Behind-the-meter remains the highest-IRR niche but only when an organic host relationship already exists.

A field guide to commercial solar in India · 2026

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