Captive vs Open Access vs Group Captive Solar: Which Model Fits Your Factory?
"We want solar" is not a decision. The real decision is which structure you use to get it. Three models dominate industrial solar in India, and each suits a different factory.
Model 1: Captive Solar (Own Plant)
You build and own the plant on your land or leased land, and you consume the power.
Best for: Factories with land, strong balance sheets and a daytime load that matches plant size.
Advantages:
Maximum savings once the capital is recovered
Full control of design, O&M and generation
Typical payback of 3.5 to 5 years
Limitations:
Heavy upfront capital: ₹3.8–₹4.5 crore per MW
Land identification, NA conversion and documentation
The plant sits on your balance sheet
Model 2: Open Access Solar
You buy solar power from a third-party generator and the grid carries it to your unit.
Best for: Large consumers who want green power without owning an asset.
Advantages:
No capital expenditure
Access to plants in better solar locations
Limitations:
Open access charges (transmission, wheeling, cross-subsidy and others) reduce savings and change by regulation [verify current Gujarat charges]
Banking and settlement rules affect real savings
Contract and scheduling complexity
Model 3: Group Captive Solar
Several consumers co-own a shared plant through an SPV. To qualify as captive users, they must meet the ownership and consumption conditions under the Electricity Rules: 26% equity, and a minimum share of the plant's output consumed by the owners [verify current thresholds].
Best for: Mid-sized manufacturers with large monthly bills who want savings without land or heavy capital.
Advantages:
A fraction of the capital of a full plant
Land arranged by the majority investor
No large loan on your balance sheet
Long-term PPA at a fixed rate below the grid tariff
Limitations:
You must qualify on location, contract demand and consumption
You are a minority stakeholder in a shared structure
Slots are limited per project
Side-by-Side View
Capital needed: Captive — High | Open Access — None | Group Captive — Low to moderate
Land needed: Captive — Yes | Open Access — No | Group Captive — No
Balance sheet impact: Captive — High | Open Access — None | Group Captive — Low
Savings potential: Captive — Highest | Open Access — Moderate | Group Captive — High
Complexity: Captive — Moderate | Open Access — High | Group Captive — Moderate
How to Choose
1. Do you have suitable land near a substation? If yes, captive is worth modelling.
2. Can you spare ₹8–₹20 crore without hurting expansion? If no, look at group captive.
3. Is your monthly bill above ₹50 lakh? Group captive economics improve sharply at this level.
4. Do you want ownership or only savings? Open access suits savings-only buyers.
Final Thoughts
There is no universally best model. The best model is the one your land, capital and load can actually support.
Which Model Fits Your Unit?
Send us your last 3 electricity bills. We will tell you which model fits.
Green Revolution Powerpark LLP
info@greenrevolutionpowerpark.com
www.greenrevolutionpowerpark.com
