Your electricity bills are climbing. Power cuts disrupt operations. You’re looking at solar, but the idea of setting up your own commercial plant feels overwhelming land, permissions, maintenance, capital.
What if you could access clean, affordable solar power without building a single panel yourself?
That’s exactly what Indian solar parks offer. These government-backed mega solar facilities allow commercial buyers to purchase power through agreements, skipping the complexity of owning infrastructure. Over 55 solar parks across 13 states now supply 40 GW of capacity, and businesses are tapping into this resource to cut costs and meet sustainability goals.
In this guide, we’ll walk you through how commercial users can access solar power from these parks, the methods available, steps to acquire it, and the policies making it all possible.
Understand the Basics
Indian solar parks aren’t retail stores. They’re massive solar power generation hubs developed by central and state governments with built-in infrastructure transmission lines, roads, water supply, and clearances.
Here’s how they work:
Developers set up solar projects within these parks and generate electricity. Commercial buyers like you can purchase this power through structured agreements, without owning or operating the infrastructure.
Why does this matter for your business?
You avoid upfront capital costs of ₹4-5 crore for a typical 1 MW installation. You skip land acquisition, permits, and maintenance headaches. You lock in predictable energy costs for 20-25 years, protecting your budget from tariff hikes.
Parks like Bhadla in Rajasthan (2,245 MW), Pavagada in Karnataka (2,050 MW), and Rewa in Madhya Pradesh (750 MW) are already supplying power to industries, metros, and commercial establishments. Tamil Nadu’s Kamuthi project even powers urban transit systems, proving that solar parks serve diverse commercial needs.
Key Methods for Commercial Users
There are three primary ways commercial users access solar power from Indian solar parks:
Power Purchase Agreements (PPAs)
A PPA is a long-term contract where you buy electricity directly from a solar developer at a fixed rate. You don’t own the plant. You simply pay for the power you consume, typically for 20-25 years.
This method works best for businesses with consistent energy demand factories, IT parks, shopping malls. You get stable pricing, zero maintenance, and immediate carbon footprint reduction.
Open Access
Open access allows you to buy solar power directly from a generator and transmit it through the state grid to your facility. You pay wheeling and transmission charges to the grid operator, but you control your energy source.
This model suits large commercial consumers with demand exceeding 1 MW. It offers flexibility, competitive tariffs, and the ability to choose your solar provider.
Group Captive Model
Multiple commercial users collectively own a solar project in a park and share the generated power. Each participant holds equity based on their consumption needs, and power is distributed proportionally.[mnre.gov]
This method works for industrial clusters, business associations, or corporate groups wanting ownership benefits without full project responsibility.
Steps to Acquire Solar Power
Acquiring solar power from parks follows a clear process. Here’s how to navigate it:
Step 1: Assess Your Energy Needs
Calculate your monthly and annual electricity consumption. Review your current tariff structure. Determine if solar can offset 30%, 50%, or 100% of your load. This baseline helps you choose the right method and contract size.
Step 2: Identify Suitable Solar Parks
Check which parks operate in your state or neighboring regions. Parks like Bhadla, Pavagada, and Rewa have active allocations. Contact state nodal agencies or Solar Energy Corporation of India (SECI) to confirm available capacity.
Step 3: Choose Your Procurement Method
Decide between PPAs, open access, or group captive based on your demand, budget, and operational control preferences. For most mid-sized businesses, PPAs offer the simplest entry point.
Step 4: Negotiate Agreements
Engage with solar developers or aggregators to finalize tariff rates, tenure, and terms. Standard PPAs follow SECI templates, ensuring transparency. Verify grid connectivity, delivery points, and penalties for underperformance.
Step 5: Secure Grid Approvals
For open access or group captive models, apply for connectivity approval from your state electricity board. This includes transmission agreements, metering setup, and grid synchronization.
Step 6: Finalize Documentation
Sign the PPA, energy banking agreements, and grid connectivity contracts. Register your project with the state nodal agency if required.
Step 7: Start Receiving Power
Once the solar project is commissioned and grid-connected, power flows to your facility. You pay monthly based on consumption, and savings begin immediately.
Benefits of Solar Power Agreements
Why are businesses across India choosing solar parks?
- Immediate cost savings. Solar tariffs are now as low as ₹2-₹3 per unit, compared to grid rates of ₹6-₹9 for commercial consumers. That’s 50-60% savings on electricity bills.
- Predictable energy costs. Fixed tariffs protect you from future rate hikes and fuel price volatility. Budgeting becomes simpler, and long-term financial planning improves.
- Zero maintenance burden. Developers handle operations, cleaning, repairs, and monitoring. You focus on your business, not plant management.
- Sustainability credentials. Switching to solar helps you meet ESG goals, qualify for green certifications, and appeal to environmentally conscious customers and investors.
- Scalability. Start with a small allocation and expand as your demand grows. Solar parks offer flexible capacity, unlike fixed on-site installations.
Challenges in Solar Energy Contracts
While solar parks simplify access, challenges exist:
- Grid infrastructure limitations. Some states face transmission bottlenecks, delaying power delivery. Verify grid capacity before signing agreements.
- Banking and wheeling charges. Open access users pay fees to transmit solar power through the grid. These charges vary by state and can reduce savings if not factored in early.
- Intermittency and reliability. Solar generation fluctuates with weather. Contracts should include grid power backup provisions or energy storage options.
- Regulatory uncertainty. Policy shifts in renewable energy obligations, net metering rules, and tariff caps can impact agreements. Work with experienced legal advisors to future-proof contracts.
- Land and clearance delays. While parks handle infrastructure, project commissioning timelines can slip due to land disputes or environmental approvals.
Latest Solar Energy Policies in India & Key Entities & Schemes
India’s 2025 policy landscape is driving commercial solar adoption:
Union Budget 2025
₹26,549 crore allocated to renewable energy, including infrastructure upgrades, rooftop solar subsidies, and grid corridors. This funding ensures smoother project execution and faster connectivity.
2025 Quality Control Order
MNRE mandates BIS compliance for solar modules, inverters, and plants, improving efficiency and safety standards. Commercial buyers benefit from higher-quality installations and longer asset life.
Solar Parks Scheme
55 parks approved across 13 states with 40 GW capacity. The scheme provides land, transmission, and clearances, reducing project costs by 20-30%.
PM-KUSUM Scheme
Supports commercial agriculture users with solar pump installations and grid-connected projects, offering additional subsidies for small and medium enterprises.
Key Entities
- Solar Energy Corporation of India (SECI): Central nodal agency for solar tenders, PPAs, and park allocations.
- Ministry of New and Renewable Energy (MNRE): Policy formulation, scheme management, and subsidy disbursement.
- State Nodal Agencies: Handle state-level approvals, open access permissions, and grid connectivity.
Conclusion
Accessing commercial solar power from Indian solar parks is no longer complicated. Whether through PPAs, open access, or group captive models, businesses now have clear pathways to affordable, clean energy.
With 55 operational parks, supportive policies, and tariffs hitting record lows, 2025-2026 is the right time to act. Start by assessing your energy needs, connecting with SECI or state agencies, and exploring agreements that fit your business.
The companies saving 50-60% on electricity bills aren’t waiting. Neither should you.
Faqs
1. Can we buy electricity from a solar farm?
Yes, commercial users in India can purchase electricity from solar farms through Power Purchase Agreements (PPAs), open access, or group captive models, avoiding ownership costs while securing fixed tariffs.
2. What is the subsidy for commercial solar systems in India?
Commercial rooftop solar systems qualify for limited subsidies under MNRE’s Grid-connected scheme (up to 40% for first 3 kW, 20% thereafter up to 10 kW), plus tax benefits and accelerated depreciation.
3. How much profit is in a 1 MW solar power plant?
A 1 MW solar plant generates ₹42-70 lakhs annual revenue at ₹3-5/unit tariffs (1.4 million units/year), with 12-20% ROI after 3-4 year payback.
4. Is solar farm business profitable?
Yes, solar farms in India yield 12-20% annual returns with 3-4 year payback due to low tariffs (₹2-3/unit), government support, and 25-year lifespan.