What is group captive solar in India?

The group captive solar model allows multiple electricity consumers to jointly participate in one solar project and use the power for captive consumption. It usually includes - Shared ownership by participating consumers Minimum 26% collective ownership in the project Minimum 51% collective consumption of generated power in a financial year Renewable power procurement without full project ownership or full capital investment

What should businesses check before signing a group captive solar PPA?

Before signing a group captive solar PPA, businesses should review more than the quoted tariff. Important checks include - Project ownership structure Captive compliance responsibility Open access charges Contract tenure and exit terms Generation estimate and energy settlement State-level banking and wheeling rules A well-reviewed agreement helps ensure the group captive solar model remains financially attractive, compliant, and operationally practical over the contract period.

What approvals are needed for group captive solar?

Approvals for group captive solar depend on the state, project location, and open access route. They usually cover - Open access application and approval Grid connectivity and wheeling arrangement Metering, scheduling, and energy accounting Captive ownership and consumption compliance State-level banking, wheeling, and settlement rules Before choosing the best solar procurement model, businesses should check approval timelines, consumer responsibilities, and state-specific regulations.

Does group captive solar reduce electricity cost for businesses?

Group captive solar can reduce electricity costs for eligible businesses, but savings depend on more than the quoted tariff. A strong group captive solar comparison should check - PPA tariff against grid tariff State open access charges Wheeling charges and transmission losses Banking and settlement rules Project compliance and consumption pattern The model works best when demand, location, and regulatory conditions align.

Group captive solar compared with CAPEX and OPEX

Is group captive solar the best solar procurement model?

Explore how the group captive solar model compares with CAPEX and OPEX on cost, control, ownership, and long-term value for future-ready businesses in India

Jul 24, 2026

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Introduction

For businesses, solar is no longer just a cleaner way to power operations. It is becoming a strategic call on ownership, capital, control, and long-term certainty. That is why the group captive solar model is drawing sharper attention, especially after the Electricity (Amendment) Rules, 2026 clarified captive power provisions and simplified rules for group captive arrangements.

The shift is important because every solar route changes the business equation differently. CAPEX gives ownership; OPEX offers lower upfront commitment, and group captive sits between the two with shared responsibility and scale. Understanding where each model stands can help businesses choose solar with greater confidence, not just greater intent.

What sets the group captive solar model apart?

For businesses planning a long-term shift to solar, choosing the best solar procurement model is less about a single tariff and more about striking the right balance among investment, control, risk, compliance, and scalability.

Group captive solar model for business energy savings

Group captive solar model balances ownership, scale and savings

Decision point	Group captive solar	CAPEX solar	OPEX solar
What the model really means	Multiple consumers invest in a shared project or SPV (Special Purpose Vehicle) and draw power via open access	The business buys, owns, and uses the solar asset	A developer owns the asset and sells power to the business through a Power purchase agreement
Capital requirement	Moderate, since consumers contribute equity but do not fund the full project alone.	Highest at the start, since the business funds the project.	Lowest upfront, since the developer carries the asset investment
Ownership structure	Shared ownership, subject to captive requirements such as collective equity and annual consumption thresholds	Complete asset ownership sits with the consumer	Ownership stays with the third-party developer
Tariff advantage	Savings can be stronger because captive open access may reduce key surcharge exposure, subject to applicable state rules.	Savings improve over time once the asset starts delivering returns	Savings depend on the contracted PPA tariff versus grid power
Control	Better strategic control than OPEX, without the burden of owning the complete asset.	Highest control over asset, vendor, performance, and maintenance choices	Limited control, with most terms defined by contract
Operations and maintenance	Usually handled by the developer or SPV (Special purpose vehicle), with defined service standards	Managed by the consumer or an appointed O&M partner.	Managed by the developer as part of the service arrangement
Risk profile	Risk is shared between participants and the developer, with compliance needing careful monitoring	The consumer carries performance, maintenance, and asset risk.	Most project and performance risk sits with the developer.
Scalability	Strong fit for large commercial and industrial energy demands spread across multiple locations	Works best where capital, roof space, or land are available	Easier to start across suitable sites with limited investment
Renewable energy scale	Strong fit for larger renewable energy procurement, especially for businesses with high or multi-location power demand	Scale depends on available capital, rooftop space, or land owned by the business	Easier to scale gradually across suitable sites without major upfront investment
Regulatory complexity	Involves open access approvals, captive compliance, and state-specific rules, making regulatory planning important from the start	Usually simpler for rooftop or owned-site projects, depending on net metering, DISCOM approvals, and local rules	Largely managed by the developer, though the consumer must evaluate PPA terms, approvals, and site-level conditions
Best fit	Businesses that want large-scale renewable power without full project ownership	Ideal for businesses that want full ownership, have capital available, and seek long-term savings	Businesses that want quick solar adoption without asset ownership

For businesses, the group captive solar model brings the conversation back to what matters most: reliable renewable power, balanced responsibility, and long-term energy certainty. To understand the foundation behind any solar route, from panels and sizing to installation and maintenance, explore this guide to solar panels in India.

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Bottomline

The solar model a business chooses can quietly shape its energy economics for decades. CAPEX rewards those ready to own the asset, while OPEX makes adoption easier by removing the capital burden. For many commercial and industrial consumers, the group captive solar model offers a powerful middle path, combining shared ownership, long-term cost visibility, and large-scale renewable energy procurement. That is the real takeaway: solar adoption is easy to announce, but the smartest businesses will win by choosing the structure that protects cost, control, and certainty together.

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Frequently asked questions

The frequently asked questions section is a reliable source for unlocking answers to some of the most crucial inquiries. Please refer to this section for any queries you may have.

The group captive solar model allows multiple electricity consumers to jointly participate in one solar project and use the power for captive consumption.

It usually includes -

Shared ownership by participating consumers
Minimum 26% collective ownership in the project
Minimum 51% collective consumption of generated power in a financial year
Renewable power procurement without full project ownership or full capital investment

Before signing a group captive solar PPA, businesses should review more than the quoted tariff. Important checks include -

Project ownership structure
Captive compliance responsibility
Open access charges
Contract tenure and exit terms
Generation estimate and energy settlement
State-level banking and wheeling rules

A well-reviewed agreement helps ensure the group captive solar model remains financially attractive, compliant, and operationally practical over the contract period.

Yes, group captive solar can support corporate sustainability goals by helping businesses procure renewable electricity at scale. Since power is linked to a solar generation project, it can contribute to renewable energy procurement and decarbonization plans, subject to proper energy accounting and documentation. For companies with ESG or net-zero commitments, the model offers a practical route to cleaner power without depending only on rooftop capacity.

Approvals for group captive solar depend on the state, project location, and open access route.

They usually cover -

Open access application and approval
Grid connectivity and wheeling arrangement
Metering, scheduling, and energy accounting
Captive ownership and consumption compliance
State-level banking, wheeling, and settlement rules

Before choosing the best solar procurement model, businesses should check approval timelines, consumer responsibilities, and state-specific regulations.

Group captive solar can reduce electricity costs for eligible businesses, but savings depend on more than the quoted tariff.

A strong group captive solar comparison should check -

PPA tariff against grid tariff
State open access charges
Wheeling charges and transmission losses
Banking and settlement rules
Project compliance and consumption pattern

The model works best when demand, location, and regulatory conditions align.

Yes, captive generators have the right to open access for carrying electricity to their own use, subject to the conditions and regulations set by the appropriate commission. For group captive solar projects, this means power can be supplied from an off-site solar plant to participating consumers through the grid. However, approvals, charges, metering rules, and timelines may differ across states, so state-level regulations remain critical.

The group captive solar model must meet two core captive conditions in India. Captive users must collectively hold at least 26% ownership in the generating plant and consume at least 51% of the electricity generated during the financial year. These requirements are important because the project must continue to qualify as captive. If the conditions are not met, the expected open access and surcharge-related benefits may be affected.

Sources

1. Captive Power Plant vs Group Captive Power in Open Access Green Energy: A Strategic Guide for Procurement and Operations Leaders

2. What is Group Captive Open Access? Why should businesses opt for Renewable Energy transition through this route?

3. What Are Captive Solar Projects?

4. Regulatory Landscape - Captive Consumption in India

5. Government issues draft revisions to captive power project rules

6. CAPEX vs OPEX solar model: Which one should you pick?

7. CAPTIVE / GROUP CAPTIVE