India’s commercial and industrial (C&I) consumers are accelerating their adoption of renewable energy to manage rising electricity costs, improve energy security, and meet sustainability goals. Increasing power tariffs are pushing businesses toward rooftop solar and green open access solutions to lower costs and reduce their carbon footprint. Many businesses are also considering battery storage where financially viable to overcome the intermittency of renewables.

Madhya Pradesh ranks eighth among Indian states in cumulative installed open-access solar capacity, accounting for 23% of its large-scale solar installations.

Solar open access capacity in the state grew 142% year-over-year in 2025, reflecting strong demand from C&I consumers. With a target of achieving 50% renewable energy in its power mix by 2030 and supportive policies, clean power procurement is expected to increase further in the state.

Industry experts discuss the benefits, adoption pathways, and outlook of renewable energy and battery storage for C&I businesses in India, with a focus on Madhya Pradesh.

Consumer Behavior

C&I consumers typically adopt renewable energy in phases, depending on their consumption patterns and contracted demand.

Sudheer Garimella, General Manager, Business Development at Candi Solar, said customers must assess their power consumption pattern and sanctioned load. They generally opt first for rooftop or ground-mounted solar systems on their premises. Customers can use net metering if their power load is not continuous or their contracted demand is up to 1 MW.

If their contracted demand exceeds 1 MW, many opt for behind-the-meter systems to source power from captive projects. Open access mode is typically adopted after these options are exhausted, allowing consumers to size projects based on hourly demand.

“The economics of solar energy have reached a stage where it has become highly attractive to customers,” said Garimella.

He added that sustainability requirements and export market dynamics, particularly in Europe, are influencing adoption. Businesses using renewable energy can secure better pricing for their products in international markets.

Those with a constant power load will end up adopting solar energy; it is no longer an option, given the financial savings.

Nitin Jain, General Manager-Business Development at Inox Neo Energies, said battery energy storage is shifting from a secondary technology to a primary one. Storage systems allow businesses to store solar energy generated during the day and use it during peak tariff periods. With time-of-day tariffs increasing in several states, this strategy improves cost savings.

“Apart from cost savings, businesses using green energy to manufacture their products can command better pricing in export markets,” Jain said, noting a potential $1–$2 price advantage in Europe.

He added that the adoption of renewables also supports carbon credit generation and helps companies meet environmental, social, and governance goals.

Optimal Routes for Solar Adoption

Solar project sizing depends on consumption patterns and operational requirements.

For net-metered systems, sizing is typically based on monthly energy consumption. For captive and behind-the-meter systems, hourly load patterns are critical because generated energy must be consumed immediately..

“Project planning must be based on the date and hourly load patterns. Typically, we have observed that in-house solar projects can range from smaller kilowatt capacities to 15-20 MW, with many businesses expanding installations in phases to match their contracted demand,” said Garimella.

Demand in Madhya Pradesh

Garimella highlighted that in Madhya Pradesh, sectors such as textiles are increasingly utilizing available rooftop and land space to expand solar capacity.

However, adoption of open access remains limited compared to rooftop installations.

Jain said power demand in Madhya Pradesh has increased significantly year-over-year. However, industries have not shifted enough toward green energy open access. Such industries in the state still largely favor rooftop solar systems. This is because of land scarcity and connectivity challenges.

However, he highlighted the state government’s 2025 policy, which provides up to a 50% waiver on wheeling charges, reimbursement of stamp duty, and exemption from electricity duty for 10 years. All these policies are helping make the open access environment in Madhya Pradesh more reliable.

Jain noted that open access is cheaper than fossil fuels. “If consumers go for the hybrid renewable energy option, they will be relying on a more sustainable, reliable, and convenient source.”

Routes for Installing Solar

Discussing capital requirements for installing solar projects, Garimella stated that financing is no longer a constraint for setting up such systems.

Businesses can adopt the capital expenditure model for smaller systems or opt for the operational expenditure model, in which developers install and operate systems and supply power through long-term power purchase agreements.

For open-access projects under group captive plans, consumers typically contribute about 26% of the equity, with the remainder funded by developers.

Garimella said Candi Solar offers support through its performance-linked loan model for solar system installations. Under this model, businesses can avail depreciation and tax benefits for installing the solar projects. Candi Solar provides 100% project financing under this model and assumes execution, performance, and operational risks. Businesses pay for the energy they consume. “Businesses can also avail low-interest financing from banks to install renewable systems if they have decent creditworthiness.”

Demand for RTC Power

Garimella said the market demand for renewable energy began with solar; however, most corporates are now looking for round-the-clock (RTC) renewable energy. “This is where battery storage comes into the picture, as this is the only way you can store solar energy and use it during off-solar hours.”

He noted that while wind energy can support RTC supply, its availability varies by region. As a result, solar-plus-storage solutions are becoming more relevant across states.

Battery storage is currently more prevalent in utility-scale projects but is expected to become viable at the industrial level as costs decline.

Battery storage systems are emerging as an attractive alternative to diesel generators.

Garimella added that compared to diesel-based backup, batteries reduce fossil fuel consumption, offer better operational stability, and can support regular operations rather than just backup needs. “If consumers combine daytime solar with a battery today, it will cost them less than the grid prices. Individually, batteries may be costlier. However, their prices will eventually reduce.”

Inox is developing a 100-MW solar-plus-storage park in Madhya Pradesh. Jain added that savings from such projects will be at least ₹2 (~$0.021)/kWh to ₹3 (~$0.032)/kWh compared to distribution company tariffs.

He stated that the RTC power provided by battery storage projects can enhance consumers’ financial credibility and help them access green financing.

However, Jain added that despite the growing usage of battery storage in India, the country’s supply chain for such systems is completely dependent on China. Due to a lack of technology transfer, Indian companies are mostly assembling the battery systems.

These discussions were held at Mercom India’s Bhopal C&I Clean Energy Meet, encouraging businesses to accelerate the shift toward renewable energy, including rooftop and open access solar and battery storage adoption, to save on electricity bills and gain business advantages, particularly in foreign markets.

The next Mercom India C&I Clean Energy Meet event will be held in Mumbai on April 16, 2026.