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Open Access Solar in India: Why Capacity Jumped 160% in Q1 2026
In the first three months of 2026, India added 2.7 GW of open access solar. A year earlier, the same quarter brought just 1 GW. That's a 160 percent jump, and the second-biggest quarter the segment has ever had. By March 2026, total installed open access capacity had passed 32.9 GW.
Most industrial buyers still call open access "complicated", so this isn't a gentle rise. It looks more like a land rush. Understanding why it happened says a lot about where commercial and industrial power buying in India is going next.
Below, we cover what open access solar is, what drove the Q1 2026 spike, and the charges that decide whether it actually saves you money.
What is open access solar?
Open access lets a commercial or industrial consumer buy power from a solar plant somewhere else in the state, or even in another state, instead of relying only on the local DISCOM. The existing grid carries the electricity.
It comes down to choice. A factory in one district can sign a power purchase agreement (PPA) with a solar plant in another and pay the generator directly. The grid just does the transport.
Third-party vs captive vs group captive
Open access comes in three forms, and which one you use makes a big difference to cost.
Structure | How it works | Surcharges |
|---|---|---|
Third-party | You buy from an independent generator under a PPA | You pay all open access charges, including cross-subsidy surcharge |
Captive | You own at least 26% equity in the plant and use a set share of its output | Exempt from cross-subsidy and additional surcharge under the Electricity Act, 2003 |
Group captive | Several consumers together hold the 26% equity in a shared plant | Same exemptions for each member, without any one buyer funding the whole stake |
Why open access solar jumped in Q1 2026
The timing was no accident. According to Mercom India, the main driver was developers rushing to commission projects before ALMM List-II rules for cells and modules kicked in on 1 June 2026.
Mercom's managing director, Priya Sanjay, explained the thinking. Projects that missed the deadline would lose both the ISTS charge waiver and the option to use non-DCR panels. Either one would hurt project economics.
Mercom also pointed to supportive state policies, quicker approvals and stronger market outreach as reasons the quarter was so busy.
Open access solar in Q1 2026: the numbers
Metric | Figure |
|---|---|
Capacity added in Q1 2026 | 2.7 GW |
Year-on-year growth | 160% (from 1 GW in Q1 2025) |
Quarter-on-quarter growth | About 59% (from 1.7 GW in Q4 2025) |
Ranking | Second-highest quarter on record |
Total installed capacity, March 2026 | 32.9 GW |
Top state for Q1 2026 additions | Rajasthan, about 39% |
Top state for total capacity | Karnataka, about 23% |
Top five states' share of total capacity | About 77% |
Rajasthan led the quarter thanks to strong sunlight plus the land and grid access that make new projects easier to build there. Karnataka is still ahead on total installed capacity, built up over earlier years.
Why some sunny states are falling behind
Plenty of sunshine doesn't guarantee growth. Mercom notes that in several states with excellent solar resources, regulatory hurdles and land acquisition problems keep a lid on how much open access capacity gets built. On paper the economics look good. In practice, the paperwork and the land are what hold things up.
Open access charges: what decides whether it pays off
Capacity figures only tell you so much. Whether open access really saves you money depends on the charges that come with your procurement model, and this is where third-party and captive deals pull apart.
Cross-subsidy surcharge (CSS). Usually quoted at somewhere between Rs 0.20 and 2.50 per unit, depending on the state. It's typically the largest and most variable charge on third-party open access power. Captive and group captive consumers don't pay it at all, under the Electricity Act, 2003.
Additional surcharge (AS). Third-party PPA buyers pay this too. Captive and group captive structures are again exempt.
ISTS charges. The waiver on inter-state transmission charges for renewables has been phasing out since June 2025 under CERC rules. That's a big part of why developers pushed so hard to commission before losing it, and why Q1 2026 was so busy.
The result: two buyers getting the exact same solar power through open access can pay very different amounts, purely because one went third-party and the other went captive. How you structure the deal deserves as much attention as finding a well-priced generator.
What this means for different buyers
If you're a C&I buyer looking at open access for the first time, take captive and group captive seriously. The CSS and AS exemptions can make a real difference, even though you'll need to put equity into the generating plant.
If you're a developer, look at where the market is most mature. Rajasthan is growing fastest, and Karnataka has the deepest installed base. That's where land processes, grid connections and local experience are furthest along.
If you're in a state with great sunshine but slow growth, plan around the real bottleneck. It's more likely to be regulation and land than solar resource, so build that into your timeline instead of expecting good irradiance to speed up approvals.
The bottom line
The 160 percent jump in Q1 2026 wasn't just market excitement. Developers were racing a specific regulatory deadline. And for any individual buyer, it's the charge structure, not the headline capacity figure, that decides whether open access makes financial sense.
Rajasthan's surge and Karnataka's lasting lead both point to the places where land, grid access and market know-how have matured fastest. If you're weighing open access now, the choice between third-party, captive and group captive matters as much as the tariff.
At Metalbook, we work on the materials side of solar and energy infrastructure projects across India. If you're evaluating an open access structure or sourcing for a project, our team can help you think through the economics.
