Captive solar push propelling faster grid independence

As India moves toward 2026, policymakers are also viewing captive solar as a tool to ease peak demand pressure and reduce grid congestion, particularly in industrial clusters.

- Authored by: Nitesh Gupta Managing Director- Bhaskar Jyoti India Private Limited

As India closes 2025, captive solar power has firmly moved from being an alternative energy option to a strategic business decision for commercial and industrial consumers. Rising electricity costs, evolving policies, and sustainability mandates are reshaping how Indian businesses think about power procurement.

From our experience at Bhaskar Jyoti India Private Limited, working with industrial clients across multiple states, it is evident that companies are increasingly viewing captive solar as a long-term hedge against energy uncertainty rather than a short-term cost-saving measure.

Power cost volatility driving strategic change

For commercial and industrial users, grid electricity tariffs in India vary widely by state but typically range from ₹7 to ₹9 per unit, once applicable surcharges, duties, and wheeling charges are considered. Frequent tariff revisions and cross-subsidy structures make long-term cost planning challenging for businesses.

In comparison, captive solar power projects today are commonly deployed at levelised costs of ₹3.5 to ₹4.5 per unit, depending on project size, location, and configuration. Over a project life of 20–25 years, this provides businesses with significant cost visibility and insulation from future tariff increases.

Captive and open-access solar is gaining share