Maharashtra Leads India’s Solar Open Access Growth with Record Installations Published By Anupam Nath Maharashtra has emerged as the front-runner in India’s solar open access sector, recording exceptional growth in the second quarter (Q2) of 2025. According to the latest Mercom India Solar Open Access Market report, the state accounted for nearly 30% of the country’s capacity additions during this period, marking a 161% quarter-over-quarter (QoQ) and 240% year-over-year (YoY) surge.This remarkable progress highlights Maharashtra’s proactive approach toward renewable energy adoption, backed by supportive policies, increasing corporate demand, and the need for cost-effective electricity solutions.---Driving Factors Behind the SurgeThe surge in solar open access installations has been primarily driven by high grid tariffs that continue to burden commercial and industrial (C&I) consumers. Companies from key sectors such as chemicals, fast-moving consumer goods (FMCG), and textiles have turned to solar energy to reduce operating costs while aligning with sustainability goals.In Q2 2025 alone, India added 2.6 GW of solar open access capacity—up 143% from Q1 and 60.1% compared to last year. Developers rushed to complete projects before the June 2025 interstate transmission system (ISTS) charge waiver deadline, with many projects partially commissioned to qualify. Maharashtra, with its strong industrial base and rising clean energy demand, became the biggest contributor to this growth.---Policy Support and Regulatory ChangesMaharashtra’s growth in open access solar has also been supported by favorable regulatory frameworks. The Maharashtra Electricity Regulatory Commission (MERC) recently amended distributed open access regulations, allowing consumers with a contracted demand of at least 100 kW—through single or aggregated connections within the same distribution area—to avail of Green Energy Open Access.This policy shift has empowered captive and group captive consumers with full flexibility, while a revised time-of-day tariff structure encourages industries to align their power usage with solar generation hours. These measures not only ensure better utilization of solar resources but also enhance cost savings for industrial consumers.---Cost Competitiveness and SavingsWhile open access charges and PPA tariffs increased slightly this quarter, solar energy continues to offer significant landed cost savings compared to traditional grid power. Commercial tariffs have declined from ₹13.21 ($0.105)/kWh, while industrial tariffs dropped from ₹8.36 ($0.085)/kWh. Despite remaining among the highest tariffs in India, the savings through captive and group captive solar models are substantial, making solar adoption financially attractive.---Future OutlookWith timely distribution company approvals, strong corporate sustainability commitments, and a robust pipeline of projects, Maharashtra’s solar open access market is poised to maintain its momentum. The state already ranks second in cumulative open access solar installations, holding 18% of the national share. Notably, open access now represents nearly half of Maharashtra’s cumulative large-scale solar capacity.As industries increasingly prioritize green energy adoption, Maharashtra is likely to play a pivotal role in India’s transition to a clean, affordable, and sustainable energy future.
