From being a sustainable option, to now a critical business strategy, renewable energy has become an irreplaceable part of India’s movement towards its 2070 Net-Zero goal. For high-emission sectors such as manufacturing, data centers, and logistics, rising energy costs and stricter sustainability norms are accelerating the shift to cleaner, more cost-effective energy sources. India aims for 500 GW of non-fossil capacity by 2030. India added over 15 GW of renewable capacity in FY 2023–24, and commercial & industrial (C&I) users accounted for more than 60% of new open-access solar demand.
Businesses today can choose from captive solar plants, group-captive partnerships, third-party open access, and even financial instruments like virtual power purchase agreements (VPPAs) and exchange-traded green power. Each model offers unique advantages in terms of cost savings, emissions reduction, and long-term energy security but also has regulatory and operational complexities. Here’s a snapshot of today’s leading models and what’s trending.
1. Captive Solar: Plug in and Power up
Captive solar refers to setting up a solar power plant to supply electricity to one specific user. This can be one specificly a factory, warehouse, or data center that uses at least 51% of the electricity generated. For example, CtrlS Datacenters started using power from its own 125 MWp solar farm in Nagpur in June 2024. This model gives businesses more control over energy costs, reduces reliance on the grid, and directly lowers Scope 2 emissions, making it a strong fit for large energy-consuming facilities.
2. Group‑Captive Open Access: Collaborative Clean Power
Group‑captive projects enable multiple businesses to jointly procure renewable power. A recent example is the 26 MW solar project in Bathinda, developed by Swaraj Tractors, Mahindra Susten, and other partners. This model is gaining traction in industrial clusters, offering shared infrastructure, lower energy costs, and reduced emissions. Participants also benefit from policy incentives, making it a cost-effective way to decarbonize operations.
3. Third‑Party Open Access: Offsite Energy Sourcing
Under third‑party open access, businesses purchase renewable power directly from independent generators through India’s grid, without needing to set up their own solar infrastructure. Although capacity additions dropped to 1.1 GW in Q1 2025 (a 48% decline), demand remains strong among heavy energy users facing grid constraints. This model offers a flexible path to lower emissions and meet sustainability targets without upfront capital investment.
4. Exchange‑Traded & Virtual PPAs: Financial Clean-Energy Solutions
India’s energy transition is entering a new phase with financial instruments like electricity futures, RECs, and green power tokens approved for trading on exchanges like NSE and MCX. Additionally, CERC’s 2025 draft rules propose Virtual Power Purchase Agreements (VPPAs)—contracts that let companies financially support renewable energy and claim its benefits without receiving the power physically. These tools help large energy consumers manage price volatility and achieve ESG goals with flexibility.
Latest Trends & News Highlights
India’s renewable energy landscape is seeing important shifts that could impact corporate energy buyers. The Central Electricity Regulatory Commission (CERC) has introduced new guidelines for Virtual Power Purchase Agreements (VPPAs), which may change how businesses buy renewable power and open the door for integration with renewable energy derivatives. While Q1 2025 saw a temporary slowdown in open access capacity addition, the demand from commercial and industrial (C&I) consumers remains strong. Their demand hasn’t dropped, even if the supply side (new capacity) is growing more slowly.
Support from national and state-level open access policies will continue to play a critical role in driving this segment. At the same time, the expansion of electricity futures in the market is a promising development. It signals a maturing power market and offers greater flexibility for consumers looking to manage energy costs and hedge against price volatility.
Where Does Fitsol Fit In?
At Fitsol, a number one decarbonization partner, we help businesses to navigate renewable procurement: We evaluate captive vs open access vs VPPA options to match each company’s energy profile and emissions goals. Besides this, we also manage technical setups and regulatory approvals under open-access rules and connectivity procedures. We guide clients through exchanges, VPPAs, and derivative, ensuring clean credentials and business value. Through our analytics tools, we help monitor performance, claim emissions impact, and scale green footprint.
India is rapidly evolving its renewable energy marketplace: from captive deployments to sophisticated financial instruments. As policies, markets, and corporate ESG commitments converge, the opportunity for emissions reduction and cost savings intensifies and the role for consultative partners like Fitsol grows stronger.