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					</table>The share of open access charges in landed solar power costs declined across most major states in the second quarter (Q2) of 2026, following the revision of charges for FY2027, according to Mercom’s <a href="https://www.mercomindia.com/product/q2-2026-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">Q2 and 1H 2026 India Solar Open Access Market</a> Report.
However, lower open access charges did not translate into lower overall procurement costs for most industrial consumers, as higher power purchase agreement (PPA) tariffs offset the reduction.
Of the 13 states analyzed by Mercom, nine registered a quarter-over-quarter (QoQ) increase in landed open access costs, primarily due to higher PPA tariffs. Tamil Nadu recorded the highest landed cost at ₹8 (~$0.0846)/kWh, increasing by 1.3% QoQ. Karnataka, Maharashtra, and Madhya Pradesh followed, with landed costs exceeding ₹7 (~$0.074)/kWh and quarterly increases ranging from ₹0.01-₹0.05 (~$0.000106-$0.00053)/kWh.
Gujarat was the only state to record a decline, following a 24% reduction in the additional surcharge.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Landed-Open-Access-Cost-in-Q2-2026.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-104849 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Landed-Open-Access-Cost-in-Q2-2026.png" alt="Landed Open Access Cost in Q2 2026" width="1003" height="619" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Landed-Open-Access-Cost-in-Q2-2026.png 1003w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Landed-Open-Access-Cost-in-Q2-2026-300x185.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Landed-Open-Access-Cost-in-Q2-2026-768x474.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Landed-Open-Access-Cost-in-Q2-2026-650x401.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Landed-Open-Access-Cost-in-Q2-2026-624x385.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Landed-Open-Access-Cost-in-Q2-2026-600x370.png 600w" sizes="auto, (max-width: 1003px) 100vw, 1003px" /></a>
Higher PPA Tariffs Drive Landed Costs 
PPA tariffs emerged as a key driver of landed open access costs during Q2 2026. Across the states analyzed, PPA tariffs ranged from ₹3to ₹5 (~$0.0317 to ~$0.0528)/kWh. Maharashtra and Tamil Nadu recorded the highest tariffs, while Haryana and Odisha recorded the lowest.
Average PPA tariffs increased across several major states during the quarter. Maharashtra recorded the highest QoQ increase of 2.6%, followed by Tamil Nadu at 2.5%. Tariffs increased by more than 2% in Uttar Pradesh and Karnataka and by more than 1% in Chhattisgarh and Rajasthan. Andhra Pradesh recorded a marginal increase, while tariffs remained largely stable in the other states analyzed.
Higher module procurement costs were among the factors putting upward pressure on PPA tariffs. The implementation of the Approved List of Models and Manufacturers (ALMM) List-II mandating the use of domestically made solar cells from June 1, 2026, had raised concerns over cell availability and procurement costs ahead of the deadline.
Changes in banking provisions, time-of-day settlement, and energy accounting are also altering the economics of standalone solar projects. These changes are increasing interest in hybrid and storage-backed projects that can provide firmer and better-aligned power supply, although such projects typically carry higher tariffs.
Open Access Charges Drop 
In contrast to PPA tariffs, the share of open access charges in total landed costs declined across most states during Q2 2026. The reduction was largely driven by revised tariffs and open access charges for FY 2027.
Gujarat recorded the largest decline, with the share of open access charges falling to 38%, following a reduction in the additional surcharge. The share of open access charges also declined in Uttar Pradesh, Chhattisgarh, Andhra Pradesh, Rajasthan, Karnataka, Maharashtra, and Tamil Nadu.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-104850 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost.png" alt="Open Access Charges as a % of Landed Open Access Cost" width="986" height="538" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost.png 986w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-300x164.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-768x419.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-650x355.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-624x340.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-600x327.png 600w" sizes="auto, (max-width: 986px) 100vw, 986px" /></a>
Despite the overall decline, open access charges continued to vary significantly across states, accounting for approximately 25% to 52% of landed costs. Haryana had the highest share at around 52%, indicating that network and regulatory charges accounted for more than half of its landed cost. Uttar Pradesh had the lowest share at around one-fourth of the landed open access cost, declining a further 1.3% from the previous quarter.  Chhattisgarh and Telangana were also among the states with relatively lower charge shares.
The variation demonstrates why landed costs cannot be assessed based on PPA tariffs or open access charges independently. States with broadly similar landed costs can have significantly different cost structures. Haryana and Rajasthan, for example, recorded similar landed costs even though open access charges accounted for a substantially larger share of the total in Haryana.
Third-Party Procurement Economics Weaken in Some States  
The impact of higher landed costs becomes clearer when compared with prevailing industrial grid tariffs, which ultimately determine the savings available to open access consumers.
Tamil Nadu recorded the highest third-party landed cost, exceeding the industrial tariff by 3.9%, resulting in negative savings for third-party procurement. Elevated PPA tariffs were the primary contributor to the higher landed cost.
In Maharashtra, the third-party landed cost was marginally lower than the industrial tariff, resulting in savings of around 1%. The absence of an additional surcharge continued to support the economics.
Third-party procurement remained considerably more attractive in Chhattisgarh and Uttar Pradesh. Chhattisgarh offered savings of around 26.4% compared with the industrial tariff, while Uttar Pradesh provided savings of approximately 17.4%.
Odisha also recorded a relatively low third-party landed cost. However, consumers still faced negative savings because the state&#8217;s industrial grid tariff was comparatively low. This illustrates an important distinction in open access economics: a low landed procurement cost does not necessarily translate into attractive savings. The economics ultimately depend on the spread between the landed open access cost and the grid tariff that the consumer would otherwise pay.
Captive and Group captive Procurement Retain Clear Cost Advantage
Captive and group captive procurement remained more economical than third-party procurement across all states analyzed.
Savings under captive and group captive procurement reached ₹3.74 (~$0.040)/kWh in Chhattisgarh. The state recorded the highest savings under both procurement models among the markets analyzed, with economics also improving significantly compared to the previous quarter.
The cost advantage of captive and group captive projects is primarily supported by exemptions from cross-subsidy surcharge and additional surcharge, where applicable. These exemptions allow captive procurement to retain meaningful savings even in states where third-party open access provides limited or negative savings.
In Uttar Pradesh, group captive procurement offered around 84% higher savings compared with third-party procurement.
The widening difference between third-party and captive procurement also highlights the importance of state-level regulatory structures. As PPA tariffs rise, exemptions from major open access surcharges can provide captive and group captive structures with greater resilience against increases in landed costs. However, consumers must weigh these savings against the ownership, equity participation, consumption, and compliance requirements associated with captive structures.
The results also highlight the importance of evaluating open access economics on a state-by-state and procurement-model basis. A lower landed cost does not necessarily mean greater savings if grid tariffs are also low, while higher-cost states can still offer attractive economics where conventional industrial tariffs are sufficiently high.
For C&amp;I consumers, the relevant comparison is therefore not simply which state has the lowest PPA tariff or open access charges, but the resulting landed cost relative to the applicable grid tariff and the savings available under third-party, captive, and group captive structures.
Despite the pressure on landed costs, demand for solar open access remained strong. Installations <a href="https://www.mercomindia.com/india-solar-open-access-capacity-up-6-gw-in-1h-2026" target="_blank" rel="noopener">reached</a> a record high during Q2 2026, indicating that procurement decisions are being driven by factors beyond immediate per-unit savings. Long-term power cost visibility, sustainability targets, regulatory timelines, and the stronger economics of captive and group captive procurement continue to support demand.
Mercom’s <a href="https://www.mercomindia.com/product/india-solar-project-tracker" target="_blank" rel="noopener">solar open access tracker</a> provides key details of installed and pipeline projects, including captive, group captive, third-party sale, and solar park projects across India.
The <a href="https://www.mercomindia.com/product/q2-2026-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">Q2 and 1H 2026 India Solar Open Access Market</a> Report covers state-wise open access charges, electricity tariffs, power purchase agreement tariffs, installed and pipeline project capacities, policy updates, and other critical market data.

Rising PPA Tariffs Erase Gains from Lower Open Access Charges

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					</table>India’s <a href="https://www.mercomindia.com/product/q2-2026-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">solar open access market</a> remains concentrated among a handful of states that have historically dominated installations. Cumulative solar open access capacity reached 36.3 GW at the end of Q2 2026, with the top five states accounting for about 77% of cumulative installations and the top ten representing over 96%.
However, growing C&amp;I interest in renewable energy procurement is creating opportunities for open access development beyond these established markets. The next phase of market growth will depend on whether emerging states can convert their industrial electricity demand and project pipelines into bankable capacity additions.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Cumulative-Solar-Open-Access-Installed-Capacity-of-Top-and-Emerging-States-.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-104566 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Cumulative-Solar-Open-Access-Installed-Capacity-of-Top-and-Emerging-States-.png" alt="Cumulative Solar Open Access Installed Capacity of Top and Emerging States (%)" width="908" height="524" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Cumulative-Solar-Open-Access-Installed-Capacity-of-Top-and-Emerging-States-.png 908w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Cumulative-Solar-Open-Access-Installed-Capacity-of-Top-and-Emerging-States--300x173.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Cumulative-Solar-Open-Access-Installed-Capacity-of-Top-and-Emerging-States--768x443.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Cumulative-Solar-Open-Access-Installed-Capacity-of-Top-and-Emerging-States--650x375.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Cumulative-Solar-Open-Access-Installed-Capacity-of-Top-and-Emerging-States--624x360.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Cumulative-Solar-Open-Access-Installed-Capacity-of-Top-and-Emerging-States--600x346.png 600w" sizes="auto, (max-width: 908px) 100vw, 908px" /></a>
Rising grid tariffs, renewable consumption obligations, corporate decarbonization targets, and the need for long-term power cost visibility provide a strong foundation for expansion.
Developers are increasingly favoring states that combine attractive project economics with predictable banking regulations, stable open access charges, timely connectivity, and clear captive power rules.
Against this backdrop, Andhra Pradesh, Haryana, Odisha, Punjab, Jharkhand, Telangana, and West Bengal stand out as markets with varying degrees of untapped potential, according to Mercom’s <a href="https://www.mercomindia.com/product/q2-2026-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">Q2 and 1H 2026 India Solar Open Access Market Report</a>.
Andhra Pradesh: Strong Pipeline, Weak Conversion
Andhra Pradesh has one of the largest development pipelines outside the leading markets. The state has also approved ₹1.72 trillion (~$18.18 billion) in renewable energy and data center investments, potentially expanding demand for captive, open access, hybrid, and firm renewable power.
Despite the strong pipeline, project conversion remains a key challenge. Approval delays, project-specific connectivity issues, real-time settlement concerns, module cost volatility, and intense competition have compressed margins in some open access projects to around 5%.
Addressing these execution barriers will be critical to translating the pipeline into installations. Andhra Pradesh needs faster approvals and connectivity, more stable settlement rules, and a framework that keeps third-party procurement commercially relevant alongside captive models. Since a large share of the pipeline is hybrid or storage-linked, transmission planning and storage regulation must evolve in parallel.
Haryana: Industrial Strength, but Charges Distort the Market
Haryana has the constituents of a major open access market, including large industrial clusters, strong automotive, pharmaceutical, FMCG, and data center demand, and proximity to the National Capital Region. Open access already accounts for nearly two-thirds of the state’s cumulative large-scale solar capacity.
However, high network and regulatory charges are limiting the ability to fully capitalize on this demand. Open access charges are the highest among the states analyzed by Mercom. High cross-subsidy surcharge and additional surcharge have particularly affected the potential savings from third-party procurement, with estimated savings effectively zero.
Improving project economics will therefore be central to expanding the market. Haryana must reduce the structural gap between captive and third-party economics. Cross-subsidy surcharge, additional surcharge, and other network charges should be periodically reassessed against actual stranded costs, while time-bound processing should extend across connectivity, metering, banking, and open access approvals.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/State-wise-Solar-Open-Access-Installations-in-Q2-2026-MW.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-104568 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/State-wise-Solar-Open-Access-Installations-in-Q2-2026-MW.png" alt="State-wise Solar Open Access Installations in Q2 2026 (MW)" width="851" height="499" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/State-wise-Solar-Open-Access-Installations-in-Q2-2026-MW.png 851w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/State-wise-Solar-Open-Access-Installations-in-Q2-2026-MW-300x176.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/State-wise-Solar-Open-Access-Installations-in-Q2-2026-MW-768x450.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/State-wise-Solar-Open-Access-Installations-in-Q2-2026-MW-650x381.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/State-wise-Solar-Open-Access-Installations-in-Q2-2026-MW-624x366.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/State-wise-Solar-Open-Access-Installations-in-Q2-2026-MW-600x352.png 600w" sizes="auto, (max-width: 851px) 100vw, 851px" /></a>
Punjab: Banking Reform Could Unlock Industrial Demand
Punjab’s solar open access deployment remains limited despite demand potential from electricity-intensive C&amp;I consumers. Textiles are already major adopters, with further potential in the engineering, manufacturing, and food processing sectors.
While recent regulatory measures have sought to address the issue,  weak project economics remain a concern. The Punjab State Electricity Regulatory Commission <a href="https://www.mercomindia.com/punjab-lowers-additional-surcharge-for-open-access-power-consumers">lowered</a> the additional surcharge and <a href="https://www.mercomindia.com/punjab-proposes-carry-forward-of-banked-energy-for-insts-open-access-projects" target="_blank" rel="noopener">proposed</a> banking reforms intended to improve flexibility for captive and open access consumers. However, the reduction in retail tariffs for FY2027 has narrowed the savings from open access, restricting potential growth.
A more predictable regulatory framework could help offset some of this pressure. Punjab must finalize a simpler and more predictable banking framework and reduce scheduling, metering, and settlement complexity, especially for smaller consumers. Greater multi-year visibility on cross-subsidy and additional surcharge trajectories could also improve confidence for long-term PPAs.
Odisha: Industrial Scale Exists, but Savings Need to Improve
Odisha has one of the strongest industrial foundations for open access expansion. Steel, aluminum, mining, ferroalloys, cement, chemicals, and other electricity-intensive industries provide large, predictable loads suited to captive and group captive procurement. The <a href="https://www.mercomindia.com/product/q2-2026-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">report</a> highlights that the market is gaining momentum, with Odisha adding nearly 40 MW in Q2 2026, equivalent to about 22% of its cumulative open access capacity.
The state recently <a href="https://www.mercomindia.com/odisha-electricity-regulator-proposes-rco-targets-rising-to-43-33-by-2030" target="_blank" rel="noopener">proposed</a> a phased increase in renewable consumption obligation (RCO) targets, especially for large industrial consumers.
The state’s regulatory direction could further strengthen this demand, although project economics remain a constraint. Lower industrial grid tariffs compared to other states weaken the economic case for open access.
Maintaining a meaningful cost advantage will therefore be important as RCO-driven demand increases. The state should ensure that existing open access charge concessions are implemented consistently across DISCOM territories and reflected in actual bills. Transmission access around mining and metallurgical clusters also needs improvement, while future RCO, ancillary services, and transmission tariff reforms should avoid adding costs that neutralize existing incentives.
Telangana: Demand Potential Far Exceeds Current Deployment
Telangana has strong underlying demand from data centers, pharmaceuticals, technology companies, manufacturing, and other high-quality C&amp;I loads. Yet the market remains relatively small compared with the scale of industrial electricity consumption.
The state’s changing treatment of the additional surcharge has created regulatory uncertainty for open access consumers. Telangana had exempted open access consumers from the additional surcharge for two years but reintroduced it this year. Such changes can alter project viability and make developers and consumers more cautious when evaluating long-term PPAs.
Greater stability in open access charges, along with predictable banking and settlement provisions, transparent connectivity availability, and faster approvals, could help convert Telangana’s C&amp;I demand into projects. Its data center and continuous industrial load base also create an opportunity for hybrid and storage-backed procurement rather than relying primarily on standalone solar.
Smaller Markets with Emerging Open Access Potential
Jharkhand, West Bengal, and Kerala also have open access potential but remain relatively small markets. Jharkhand has strong industrial demand from mining, steel, cement, and heavy manufacturing, but limited developer participation, connectivity visibility, and regulatory certainty have constrained growth. West Bengal’s market is restricted by the absence of energy banking, which limits solar open access primarily to consumers with well-matched daytime loads.
Kerala also remains nascent, but the proposed Green Open Access Regulations and concessions on wheeling, transmission, and cross-subsidy surcharge could improve the market, while high peak-hour tariffs strengthen the potential for storage-backed procurement.
Across these states, clearer regulations, workable banking and settlement mechanisms, faster approvals, and better connectivity visibility will be essential to translate C&amp;I demand into sustained open access growth.
What Will Create the Next Open Access Leaders
Emerging markets show that solar resource availability is no longer the primary determinant of open access growth. Instead, the ability to translate renewable energy potential into viable projects increasingly depends on industrial demand, delivered power savings, transmission availability, banking flexibility, approval timelines, and regulatory predictability.
These factors have become even more important amid rising project costs. During Q2, higher module and domestic cell costs pushed tariffs for projects with secured land and connectivity up by about ₹0.15- ₹0.20/kWh (~$0.0016- $0.0021/kWh). At the same time, differences in banking provisions, time-block settlement, captive eligibility, and open access charges across states are making long-term savings less predictable.
The next major wave of open access growth is unlikely to be driven simply by the states offering the lowest solar tariffs. States that can provide predictable savings over the life of a project through stable charges, workable banking and settlement mechanisms, transparent transmission availability, time-bound approvals, and durable regulations will be better positioned to attract developers and consumers into long-term PPAs. If these conditions improve, several states that currently account for only a small share of India’s open access capacity could emerge as the market’s next major growth centers.
Mercom’s <a href="https://www.mercomindia.com/product/india-solar-project-tracker" target="_blank" rel="noopener">solar open access tracker</a> provides key details of installed and pipeline projects, including captive, group captive, third-party sale, and solar park projects across India.
The <a href="https://www.mercomindia.com/product/q2-2026-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">Q2 and 1H 2026 India Solar Open Access Market Report</a> covers state-wise open access charges, electricity tariffs, power purchase agreement tariffs, installed and pipeline project capacities, policy updates, and other critical market data.

Beyond the Leaders: States That Could Drive India’s Next Wave of Solar Open Access Growth

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					</table>Madhya Pradesh’s solar open access market recorded a sharp decline in installations in the second quarter (Q2) of 2026, as quarterly additions remained highly dependent on the commissioning of a few large projects.
The state added 44 MW of solar open access capacity in Q2 2026, down 84% quarter-over-quarter (QoQ) from 268 MW and 75% year-over-year (YoY) from 177 MW in Q2 2025, according to Mercom’s <a href="https://www.mercomindia.com/product/q2-2026-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">Q2 and 1H 2026 India Solar Open Access Market Report</a>.
Madhya Pradesh ranked eighth in quarterly additions and accounted for about 2% of India’s solar open access installations.
The steep sequential decline followed an unusually strong first quarter in which a small number of large projects accounted for almost all the capacity commissioned.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Madhya-Pradesh-Solar-Open-Access-Market-MW-3.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-104672 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Madhya-Pradesh-Solar-Open-Access-Market-MW-3.png" alt="Madhya Pradesh Solar Open Access Market (MW)" width="1081" height="424" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Madhya-Pradesh-Solar-Open-Access-Market-MW-3.png 1081w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Madhya-Pradesh-Solar-Open-Access-Market-MW-3-300x118.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Madhya-Pradesh-Solar-Open-Access-Market-MW-3-768x301.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Madhya-Pradesh-Solar-Open-Access-Market-MW-3-650x255.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Madhya-Pradesh-Solar-Open-Access-Market-MW-3-624x245.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/09/Madhya-Pradesh-Solar-Open-Access-Market-MW-3-600x235.png 600w" sizes="auto, (max-width: 1081px) 100vw, 1081px" /></a>
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Of the 268 MW installed in Q1 2026, <a href="https://www.oysterrenewable.com/" target="_blank" rel="noopener">Oyster Renewable Energy</a> <a href="https://www.mercomindia.com/oyster-secures-%E2%82%B918-billion-loan-for-342-mw-hybrid-project" target="_blank" rel="noopener">accounted</a> for about 81% of the quarter’s additions. <a href="https://www.avaada.com/" target="_blank" rel="noopener">Avaada Energy</a> added another 50 MW, while EDMC Solar commissioned 2 MW.
A similar concentration was visible in Q2 2026, although the projects commissioned were considerably smaller. <a href="https://www.adityabirlarenewables.com/" target="_blank" rel="noopener">Aditya Birla Renewables’</a>(ABRen) solar-wind hybrid project contributed 33 MW of solar capacity, accounting for nearly 75% of Q2 solar open access additions. GAIL India <a href="https://www.mercomindia.com/gail-invites-bids-solar-project-in-madhya-pradesh" target="_blank" rel="noopener">commissioned</a> about 8 MW of floating solar capacity at Vijaypur, while <a href="https://orianapower.com/" target="_blank" rel="noopener">Oriana Power</a> added a captive solar project of over 3 MW in Gwalior.
Madhya Pradesh commissioned 313 MW in 1H 2026, with Q1 accounting for nearly 86% of the six-month total. The 216 MW Oyster Renewable Energy project alone represented about 69% of the state’s 1H additions.
Madhya Pradesh added 162 MW in Q4, then increased to 268 MW in Q1 2026 before falling to 44 MW in Q2. At the same time, Madhya Pradesh continues to attract interest from large renewable energy developers, with industry participants describing the state as an increasingly attractive market for utility-scale solar.
Despite the quarterly fluctuations, Madhya Pradesh’s cumulative solar open access market has continued to expand. As of June 2026, the state had around 2 GW of cumulative solar open access capacity, accounting for about 5% of India’s total.
Open access projects represented nearly 30% of Madhya Pradesh’s cumulative large-scale solar capacity. Standalone solar accounted for nearly 59% of the portfolio, followed by solar-wind hybrid projects at 40%.
Large Projects in Pipeline
Madhya Pradesh’s pipeline comprises projects totaling approximately 512 MW under development at the end of Q2 2026. Standalone solar accounted for 87%, while solar-wind hybrid projects represented the remaining 13%.
The pipeline is more diversified than recent quarterly installations in terms of the number of projects, but capacity remains weighted toward relatively large developments. As these projects progress toward commissioning, they could support higher additions in the coming quarters, although the concentration of capacity among larger projects may continue to influence quarterly performance.
Of the total pipeline, <a href="https://www.mercomindia.com/research/mercom-view" target="_blank" rel="noopener">Mercom&#8217;s Project Tracker</a> currently identifies signed or known offtakers for about 32% of the capacity.
Madhya Pradesh’s open access market <a href="https://www.mercomindia.com/madhya-pradesh-offers-diverse-solar-solutions-for-ci-consumers" target="_blank" rel="noopener">suits</a> high-consumption industrial consumers. Standalone solar is ideal for consumers using at least 500,000+ units monthly. Contract-demand limits may restrict standalone solar, prompting larger consumers to consider hybrid or storage-backed arrangements.
The state’s open access market is increasingly attracting larger renewable energy developers and industrial consumers. The preference for larger, individually structured projects means capacity additions can occur in batches depending on project commissioning timelines rather than through a steady flow of smaller projects.
Regulatory Changes Could Shape Future Projects
The state has also been refining its open access framework. In February 2026, the Madhya Pradesh Electricity Regulatory Commission <a href="https://www.mercomindia.com/madhya-pradesh-amends-open-access-rules-clarifies-billing-mechanism" target="_blank" rel="noopener">amended</a> its intrastate open access regulations to clarify billing, energy adjustment, demand treatment, metering, and surcharge applicability. The amendment provided separate treatment for open access within contract demand, above contract demand, and combinations of the two, while retaining the additional surcharge exemption for captive consumption.
MPERC has also introduced changes that could influence future project structuring. Its banking SOP caps monthly banking at 30% of DISCOM consumption, <a href="https://www.mercomindia.com/madhya-pradesh-lays-out-banking-sop-for-green-energy-open-access-consumers" target="_blank" rel="noopener">applies</a> an 8% in-kind charge, and introduces time-of-day restrictions, increasing the focus on project sizing and energy management.
With standalone solar accounting for 87% of the pipeline, the new banking framework could make project sizing and consumer load matching more important as developers convert projects into commissioned capacity.
Madhya Pradesh’s recent performance reflects an open access market that is expanding over the longer term but continues to show significant quarterly fluctuations. A broader base of projects and C&amp;I offtakers, along with steady conversion of the existing development pipeline, could make future installations more evenly distributed.
Mercom’s <a href="https://www.mercomindia.com/product/india-solar-project-tracker" target="_blank" rel="noopener">solar open access tracker</a> provides key details of installed and pipeline projects, including captive, group captive, third-party sale, and solar park projects across India.
The <a href="https://www.mercomindia.com/product/q2-2026-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">Q2 and 1H 2026 India Solar Open Access Market Report</a> covers state-wise open access charges, electricity tariffs, power purchase agreement tariffs, installed and pipeline project capacities, policy updates, and other critical market data.

Madhya Pradesh’s Open Access Additions Dip Sharply in Q2 2026

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