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Policy Uncertainty Slows Solar Open Access in Telangana

Despite rising demand from industries such as IT, data centers, pharma, and textiles, solar open access projects in Telangana are struggling due to policy uncertainty and high charges. India C&I Clean Energy Meet in Hyderabad, developers highlighted that while captive open access could save consumers up to Rs5/kWh, and third-party models about Rs1/kWh, adoption has been minimal. Telangana added only 16 MW of open access in the past two years, compared to 500–600 MW in Andhra Pradesh.

Developers cited high cross-subsidy and banking charges, delayed approvals, and utility resistance as major hurdles. As a result, rooftop solar and renewable energy certificates are currently the main options for companies looking to go green. Telangana’s new clean energy policy is expected to mandate 35–40% renewable power procurement, sparking interest but awaiting clarity.

Consumers prefer rooftop solar due to the 1 MW net metering cap, while group captive projects offer 2.5–3 year payback and savings of Rs3–3.5/kWh. However, third-party models provide limited savings. Battery energy storage (BESS) is still not viable due to high costs, adding Rs2.5–3.5/kWh. Developers remain in “wait and watch” mode, pending supportive reforms.