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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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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.
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 balances ownership, scale and savings
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.
From surprising solar facts to smart energy tips, every spin uncovers a side of the sun you may not have seen before
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.
Explore Tata Power’s solar solutions for savings, scale and cleaner energy
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 –
Before signing a group captive solar PPA, businesses should review more than the quoted tariff. Important checks include –
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 –
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 –
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.
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
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