not just from utility-scale projects
but also decentralized captive solar
systems adopted by commercial and
industrial sectors.
4. Supports Localized Economic
Growth and Job Creation
Unlike utility-scale solar projects
that are often concentrated in spe-
cific geographies, local captive
projects create jobs across states
and districts from engineering and
construction to long-term opera-
tions and maintenance. This local-
ized deployment can boost skilled
employment and encourage the
development of solar supply chains
in rural and semi-urban regions.
5. Strengthens Industrial Compet-
itiveness and ESG Alignment
More Indian businesses are aligning
with Environmental, Social and
Governance (ESG) principles and
global
supply
chain
mandates,
which increasingly require clean en-
ergy sourcing. Captive solar helps
industries meet compliance targets
while improving their sustainability
performance without sacrificing op-
erational efficiency.
Policy Landscape: Progress with
Challenges
The Green Energy Open Access
Rules (2022), which reduced the
minimum eligibility load from 1
MW to 100 kW, have enabled
broader participation. States like
Gujarat, Rajasthan, Tamil Nadu,
and Maharashtra have taken proac-
tive steps by streamlining permis-
sions, introducing energy banking
options, and encouraging group
captive models.
However, challenges persist such as
inconsistent state-level charges, de-
lays in approval processes, and
restrictive energy banking win-
dows. Greater policy harmonization
and digitization of the open access
approval process will be key to
unlocking large-scale adoption.
Punjab’s Growing Momentum
In a land-constrained state like
Punjab, the adoption of off-site
captive solar models has shown
promising results. Local solar de-
ployment for industrial clusters is
enabling factories to operate more
sustainably, reduce dependency on
high-tariff grid power, and help
balance seasonal agricultural de-
mand with industrial load.
Punjab’s example highlights how
even high-consumption, low-avail-
ability states can benefit from
thoughtful solar project planning
and regulatory alignment.
Conclusion: Captive Solar as a
Catalyst for Sovereignty
India’s journey to energy sovereign-
ty must be anchored in diversifica-
tion, decentralization, and democra-
tization of energy generation. Local
captive solar projects tick all these
boxes. They not only empower in-
dustries with affordable and clean
electricity but also contribute to
national priorities be it reducing
fossil fuel imports, meeting climate
goals, or boosting regional econom-
ic development.
With the right mix of policy sup-
port, private sector participation,
and collaborative frameworks, cap-
tive solar projects can become one
of India’s most powerful tools for
ensuring resilient, inclusive, and
self-reliant energy growth.
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