Commercial Solar PPA for Industrial Factories in India (2026)
Industrial electricity tariffs in India range from ₹7.50 to ₹11.50 per unit. With a Solar Power Purchase Agreement (PPA) under the RESCO model, manufacturing units can switch to clean solar energy with zero upfront investment, locking in green power at ₹3.80 to ₹5.20 per unit.
1. RESCO Model vs. CapEx Model
Industrial factory owners looking to reduce power costs have two primary implementation models:
- CapEx Model: The factory owner buys and owns the solar plant outright, claiming 40% accelerated depreciation (AD) benefits under income tax rules.
- RESCO / PPA Model: A Renewable Energy Service Company (RESCO) invests 100% of the capital to build, operate, and maintain the solar plant on your factory roof. You only pay for the electricity generated at a pre-agreed tariff for 15–25 years.
2. Financial Benefits of Solar PPA for Manufacturing Units
By executing a 25-year solar PPA contract, factories achieve immediate operational cash-flow savings without diluting capital reserves needed for core manufacturing machinery.
- Immediate Savings: 30% to 55% reduction in daytime grid electricity charges.
- Tariff Protection: Protection against annual 5%–8% DISCOM grid tariff hikes.
- Zero Maintenance Risk: The RESCO partner bears all replacement costs for inverters, panels, and regular cleaning.
ESG & Export Advantage
European and US buyers increasingly mandate carbon-neutral supply chains. Operating on solar PPA allows Indian exporters to issue Renewable Energy Certificates (RECs) and meet global ESG compliance audits.
3. Net Metering & Open Access Regulations
Depending on your connected load (below 500 kW vs. above 1 MW), factories can choose between Rooftop Net Metering or Off-site Open Access Solar farms.