Captive, Group Captive & Open Access Solar PPA Guide

Captive Power Plant (individual)

Section 9, Electricity Act 2003 · Rule 3, Electricity Rules 2005

The consumer owns the plant outright (or through a 100% subsidiary) and uses the power itself.
Upfront: 100% of project cost, or own equity plus project debt.
Cross-subsidy surcharge (CSS) and additional surcharge (AS) are exempt.
If the plant is off-site: transmission, wheeling, scheduling charges and losses apply.
The owner claims depreciation (including accelerated depreciation where eligible) on its own books.
Term: life of the asset, about 25 years.

Group Captive Solar PPA

Rule 3, Electricity Rules 2005 (26/51 rule)

A developer forms a special purpose company (SPV) that builds an off-site solar plant.
Captive users together must hold at least 26% of the SPV's voting equity.
Captive users together must consume at least 51% of the plant's annual generation, in proportion to their shareholding (±10%).
Upfront: 26% of total plant investment, paid as equity in the SPV.
CSS and AS are exempt while the rules are met; failing in any year can make the full surcharge payable for that year.
Contracts: 25-year PPA plus Share Subscription & Shareholders' Agreement; shares bought back at exit.

Third-Party Open Access Solar PPA

Section 42, Electricity Act 2003 · Green Energy Open Access Rules 2022

The developer owns 100% of the plant and sells power to the consumer under a bilateral PPA.
Upfront: zero. Payment security through a letter of credit or bank guarantee.
Pays every grid charge: transmission, wheeling, losses, CSS and AS.
Green Energy Open Access lets consumers with 100 kW and above buy renewable power.
Term: typically 10 to 25 years; we offer 25 years. No plant ownership at the end.
Works best where grid tariffs are high and surcharges are moderate.

Side-by-side comparison

Parameter	Captive	Group Captive	Third-Party OA
Plant location	On-site or off-site	Off-site solar park	Off-site solar park
Client investment	100% of project cost	26% of project cost (equity)	Nil
Ownership	100% client	≥26% client equity in SPV	Developer
CSS & additional surcharge	Exempt	Exempt if 26/51 met	Payable
Transmission & wheeling	Payable if off-site	Payable	Payable
Minimum load	As per state	100 kW (Green OA)	100 kW (Green OA)
Tenure	~25 years (own asset)	25 years	25 years
Typical saving vs grid	Highest	High	Moderate
Key risk	Capital & O&M on own books	Annual compliance test	Surcharge & policy changes

Complete handbook: RESCO, Group Captive & Open Access

Eligibility, process, charges, terms and approvals for each model.

Rooftop RESCO / OPEX (BOOT)

Electricity Act 2003 · State rooftop / net & gross metering regulations

We build, own, operate and maintain a solar plant on your roof. You pay only for solar units at a discounted tariff and the plant is handed over to you free at the end of the term.

Commercial or industrial consumer (LT or HT) with a valid DISCOM connection.
Monthly electricity bill typically ₹5 lakh and above; sanctioned load ≥ 100 kW preferred.
Shadow-free rooftop of about 100 sq ft per kWp with structural capacity for ~15–20 kg/m².
Clear title or long-term lease of the premises covering the full PPA term.
Day-time load that can absorb most of the solar generation.
Positive credit profile: 2–3 years of audited financials, no bill payment defaults.
Rooftop solar capacity within state limits (often up to 100% of sanctioned load / contract demand).

Indicative guidance. Thresholds and charges vary by state and change with each tariff order; we confirm current rules before any contract.

How the landed cost is built

Landed cost = Solar tariff ÷ (1 − losses) + transmission + wheeling + other charges + CSS* + AS* + consultancy fee (₹0.50/kWh + GST)

*CSS and AS are not charged for a compliant Captive or Group Captive plant.

State open access charges (HT industrial, indicative ₹/kWh)

State	Grid tariff	Transmission	Wheeling	Losses	CSS	AS	Banking
Maharashtra MERC · MSEDCL	10.50	0.42	0.64	3.8%	1.61	1.25	Monthly banking, 8% charge in kind
Gujarat GERC · GUVNL	8.20	0.38	0.22	3.5%	1.48	0.40	Daily banking with charges per unit
Karnataka KERC · BESCOM	9.00	0.45	0.50	4%	1.85	0.00	Annual banking (subject to KERC orders)
Tamil Nadu TNERC · TANGEDCO	8.50	0.40	0.21	4.5%	1.72	0.00	Monthly banking for solar
Haryana HERC · DHBVN / UHBVN	8.80	0.32	0.68	4.2%	1.55	1.10	Monthly banking
Rajasthan RERC · JVVNL / AVVNL / JdVVNL	8.60	0.35	0.60	4.5%	1.40	0.90	Monthly banking
Uttar Pradesh UPERC · UPPCL	9.20	0.40	0.75	5%	1.65	0.80	Monthly banking
Madhya Pradesh MPERC · MPPKVVCL	8.90	0.36	0.55	4.5%	1.50	0.60	Monthly banking
Telangana TGERC · TGSPDCL	9.00	0.38	0.60	4.5%	1.70	0.60	Monthly banking
Andhra Pradesh APERC · APSPDCL	8.90	0.40	0.55	4.5%	1.60	0.50	Monthly banking

Benchmarks for planning only. Charges are revised by each state commission every year — we confirm current figures before any proposal.

Group Captive compliance checklist

Hold ≥26% voting equity in the SPV throughout the year.
Consume ≥51% of annual generation (all captive users together).
Keep your consumption in proportion to shareholding (±10%).
Submit annual verification to the state nodal agency / DISCOM.
Sign PPA, SSHA and open access / wheeling agreements.

Documents we need from you

Last 12 months' electricity bills (all meters).
Sanctioned / contract demand and connection voltage.
Company KYC, board resolution and audited financials.
15-minute load profile, if available.

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