Facing high electricity costs and unreliable power supply, a leading pharmaceutical company in Himachal Pradesh’s Baddi saw a way out with a customized 1.122 MW rooftop solar leasing solution.

Developed by Two Point O Capital, the solution had the potential to reduce costs with cheaper power and more reliability.

Six months since its installation, the company is looking to trim its power costs by ₹11.5 million (~$120,679) annually.

The solution is 82% cheaper than grid power and 66% cheaper than the power purchase agreement (PPA) alternative.

The rooftop solar system was installed by Two Point O in December last year. The company would have to pay ₹5.7 (~$0.0598)/kWh for the first five years, after which the solar asset would be transferred to it at zero cost.

High-efficiency TOPCon 610 modules, preferred by commercial and industrial enterprises, were used in the project.

The pharmaceutical company needed a solution that could deliver assured savings, more control over generation, and reliable operations without creating an upfront CAPEX burden.

Without the leasing solution, grid power is expected to cost an average of ₹9.9 (~$0.104)/kWh over 20 years, translating into a total electricity cost of ₹285 million (~$2.99 million).

An open-access PPA would have cost the company approximately ₹5.2 (~$0.0546)/kWh, but it had limitations regarding asset quality, generation control, and long-term accountability.

With its five-year rooftop solar leasing solution, Two Point O Capital will take responsibility for the equipment, installation, commissioning, annual maintenance, and ongoing generation performance.

Over 20 years, the levelized cost of electricity under the lease model is projected to be ₹1.7 (~$0.0178)/kWh, compared to ₹9.9 (~$0.1039)/kWh for grid electricity and ₹5.2 (~$0.0546)/kWh under the open-access PPA option.

In absolute terms, the total cost of power generation over 20 years under the lease model is estimated at ₹51 million (~$535,184), as compared to ₹285 million (~$2.99 million) using grid power. The outcome is projected savings of approximately ₹230 million (~$2.41 million) over 20 years.

The system is expected to generate around 1.5 million units of power in the first year and nearly 29 million units over 20 years.

For manufacturers facing rising grid tariffs and uncertain open-access arrangements, rooftop solar leasing offers a viable path to lower costs and greater control over generation.

India added 2.7 GW of rooftop solar capacity in the first quarter (Q1) of 2026, a year-over-year growth of 125.4% from 1.2 GW, according to Mercom India Research’s newly released Q1 2026 India Rooftop Solar Market Report. The industrial, commercial, and government segments contributed approximately 11%, 7%, and 0.4% of the quarterly additions, respectively.

Mercom India also hosts a pan-India C&I Clean Energy Meet series, bringing renewable energy developers and commercial and industrial power consumers together to discuss clean energy adoption. The next event will be held in Hyderabad on August 21, 2026.