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					</table>Uttar Pradesh is steadily tapping the commercial and industrial (C&amp;I) renewable energy market with policy initiatives focused on regulatory simplification and continued investments in grid infrastructure. Fuelled by expanding industrial demand, the state has positioned itself as a high-potential market for utility-scale solar and open access segments.
During the second quarter (Q2) of financial year 2026, Uttar Pradesh commissioned 345.9 MW of solar capacity, ranking it sixth among states in utility-scale solar capacity additions. Open access projects contributed 67.6% of these additions, driven by increasing C&amp;I demand from industries such as cement, steel, manufacturing, and other energy-intensive sectors seeking lower power costs and greater energy price visibility.
With 7.2 GW of solar projects under development, the state has a vast pool of opportunities. At the same time, challenges around land availability, transmission connectivity, project approvals, banking flexibility, and grid reliability often deter developers and contractors from exploring such opportunities.
Mercom India&#8217;s <a href="https://www.mercomindia.com/event/re-buyer-seller-meet-2026-lucknow" target="_blank" rel="noopener">Lucknow Renewable Energy Buyer Seller Meet</a> and <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2026-lucknow" target="_blank" rel="noopener">C&amp;I Clean Energy Meet</a> are scheduled for October 8 and 9 in Lucknow, respectively, and aim to bring renewable energy developers, EPC players, and energy consumers together to share insights on procurement models, technologies, policy, and financing.
Policy Push
As of June 2026, Uttar Pradesh’s cumulative renewable energy capacity rose to 12.9 GW, up 18.5% quarter-over-quarter from 10.9 GW. Accounting for 17.2% of the state’s total installed power capacity, solar capacity reached 7 GW.
Its open access market continues to expand, with cumulative solar open access capacity reaching 2.3 GW in June 2026, accounting for 6.2% of India’s total solar open access capacity.
The figures paint a promising picture of the state’s renewable energy plans, supported by a series of regulatory changes in recent years.
The Uttar Pradesh Electricity Regulatory Commission&#8217;s (UPERC) decision to revise the Green Energy Open Access regulations has paved the way for fewer compliance requirements and improved cost transparency for consumers. Eliminating the mandatory requirement for check meters at voltage levels up to 650 V can lower upfront metering costs and shorten project execution timelines, while allowing consumers to opt for additional metering support when needed.
In 2026, UPERC proposed a new State Grid Code covering renewable energy, energy storage systems (ESS), captive plants, and open access consumers. Key provisions included a renewable energy trial run and commercial operation date (COD) requirements, State Load Despatch Center forecasting, must-run status for solar and wind, formal curtailment procedures, and integrating renewable capacity plans into transmission planning.
The proposed grid code is expected to improve renewable energy integration by creating a more structured framework for solar, wind, hybrid projects, ESS, captive plants, and open access consumers. Features like trial runs and COD requirements can improve project commissioning discipline and provide greater regulatory certainty for developers.
The state recently rolled out the Data Center Policy, 2026, which targets 50% renewable energy consumption by new data centers by 2030. The policy offers data centers a 75% exemption on wheeling and transmission charges for 25 years for power sourced from renewable energy projects within the state.
While significant data center capacity is yet to come up in the state, companies have announced plans to set up units that require uninterrupted clean energy in cities such as Lucknow and Noida. The state’s policy initiatives can make long-term renewable power procurement more attractive for large data center consumers, support greater demand for captive and third-party open access projects, and improve visibility for developers looking to build renewable capacity around large C&amp;I loads.
Open Access Potential
Uttar Pradesh is emerging as an attractive open access market, supported by regulatory simplification, expanding industrial demand, and continued investment in grid infrastructure.
For C&amp;I consumers in the state, the economics of renewable open access is supported by the lowering of wheeling charges, although transmission charges have increased.
For FY 2026-27, C&amp;I electricity tariffs remained unchanged across voltage levels. Wheeling charges declined by 6.7%, from ₹0.999 (~$0.0104)/kWh to ₹0.93 (~$0.0097)/kWh, while transmission charges increased by 15%, from ₹0.27 (~$0.0028)/kWh to ₹0.31 (~$0.0032)/kWh. Cross-subsidy surcharges declined by 2–3% for HV-1 commercial consumers and remained unchanged for HV-2 large and heavy power consumers.
The market is already seeing increased renewable energy adoption by C&amp;I businesses: Uttar Pradesh added 233.8 MW of solar open access capacity in Q2 2026. The revised Green Energy Open Access metering provisions have reduced compliance requirements, while ongoing transmission expansion is supporting connectivity and evacuation.
However, banking flexibility, connectivity costs, approvals, and grid charges remain important considerations. The state has been making efforts to ease such concerns with policy measures. For instance, the state offers 100% stamp duty exemption on land used for solar projects and parks, along with an interest subsidy of up to 5% per year for five years on loans for plant and machinery.
Shift Towards Energy Storage
As the C&amp;I sector explores opportunities in the state, their procurement strategies are shifting toward storage-backed renewable power, with multiple Battery Energy Storage System (BESS) projects receiving regulatory approval. Uttar Pradesh is gradually building a vertically integrated renewable ecosystem, with investments moving beyond solar deployment toward solar component manufacturing, BESS, and grid infrastructure. Its solar-plus-battery storage pipeline includes 860 MW under development projects.
For C&amp;I consumers, navigating these challenges requires handholding by experts on policy, technology, financing, project economics, and execution. Mercom India’s events in Lucknow are carefully curated to help renewable energy sellers and buyers make the right choices to lower electricity costs and make their operations more sustainable.

Uttar Pradesh’s Growing C&I Demand Opens New Renewable Energy Opportunities

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