⚡ Quick Read
India’s solar revolution is accelerating, with total installed capacity surpassing 132.8 GW by late 2025. However, the growth remains geographically skewed toward major metros. Industrial regions in Tier-2 and Tier-3 cities—which account for over half of India’s MSME base—remain the next frontier for ground-mounted solar adoption. These clusters, ranging from Kanpur’s leather hubs to Coimbatore’s textile parks, are critical to the national economy, with MSMEs contributing 30.1% of GDP and 45.73% of exports.
For energy-intensive industries, rooftop solar is often insufficient due to structural limitations or shading. Ground-mounted open access projects offer a scalable alternative, allowing power generation on available land with wheeling to the factory. The Green Energy Open Access Rules, 2022, have been a game-changer, lowering the eligibility threshold to 100 kW, which has brought smaller industrial units into the fold. Despite this, the sector faces a ‘regulatory patchwork’ where wheeling charges, cross-subsidy surcharges, and banking provisions vary wildly across states, creating uncertainty for project developers.
For EPC contractors and solar developers, these clusters represent a high-volume opportunity. However, success requires navigating significant infrastructure gaps. The existing distribution network in non-metro areas was not designed for distributed solar injection. While the government’s Revamped Distribution Sector Scheme (RDSS), with its ₹3.03 lakh crore outlay, aims to modernize sub-transmission networks, immediate project execution remains challenging. Developers must prioritize robust site selection and regulatory due diligence to mitigate risks associated with DISCOM-level delays and grid instability.
The path forward involves bridging the gap between national policy intent and local execution. As states like Odisha align their net metering policies with MNRE guidelines, other states are expected to follow suit to attract investment. The long-term success of the India renewable energy sector hinges on the ability of stakeholders to standardize the open access process. For developers, the focus must shift from mere capacity installation to providing comprehensive energy solutions that account for grid reliability and long-term operational expenditure optimization in smaller industrial hubs.
Aditya Pathre is the Founder of MVApulse and covers India’s renewable energy sector, including solar, wind, battery energy storage systems (BESS), green hydrogen, transmission infrastructure, renewable energy policy and competitive bidding. His reporting focuses on project developments, market trends, government policies and energy transition across India.
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