SBI Caps: Open Access Offered 20% Cost Advantage In Four States

India saw 2024 as a pivotal year for renewable energy, surpassing the 200 GW threshold in installed capacity. Solar energy installed capacity registered a healthy 8% y/y growth in CY24. The SBI Caps report noted exceptional growth and a blip in energy demand, with the non-utility share standing out due to a 25% increase, the report said.

The latest SBI Caps report highlighted that the non-utility share stood out with a 25% increase, the report said, “A defining characteristic of solar additions in CY24 was the substantial 25% share of non-utilities, surpassing historical precedents. Rooftop solar installations surged by 4.6 GW, reflecting a remarkable 53% y/y growth, while off-grid solar witnessed a 197% expansion. This escalating prominence of the non-utility segment can be attributed to a combination of factors, including a low initial base, supportive government policies stimulating both the residential and commercial & industrial sectors and enhanced affordability of distributed solar solutions.”

The report explained: “Key states such as Gujarat, Karnataka, Rajasthan, and Tamil Nadu still offer a substantial 20% cost advantage for utilizing open-access renewable power. Furthermore, captive arrangements enhance the economic appeal by exempting consumers from additional surcharges and cross-subsidy levies, thereby maintaining viability across most states. Thus, the residential sector has become one of the largest segments in rooftop solar, especially led by PM-SGMBY and a vibrant ecosystem. Residential rooftop installations may surpass other segments if PM-SGMBY achieves its ambitious 30 GW target.”