A leading solar module manufacturer in Andhra Pradesh is expected to save ₹2.21 billion (~$23.28 million) over 20 years through a 9.75 MW rooftop solar power purchase agreement (PPA).

The project was structured by Two Point O Capital as a five-year rooftop solar PPA for a 9,750 kWp system. The company will manage the installation, commissioning, annual maintenance, and monthly monitoring and verification of the project.

The PPA has been designed to address the manufacturer’s high grid electricity costs and concerns over limited control in open access procurement. The customer’s average grid electricity cost over 20 years was estimated at ₹10.6 (~$0.112)/kWh, with a total grid power cost of ₹2.65 billion (~$27.92 million) for the required capacity.

An open access PPA option was available at ₹5.4 (~$0.057)/kWh. However, the case study noted concerns about equipment quality, generation control, and reliance on third-party engineering, procurement, and construction developers, without a clear generation guarantee.

Under the rooftop solar PPA, the customer will pay ₹6.3 (~$0.066) /kWh for the first five years, after which the asset will be transferred to the customer at zero cost.

The structure is expected to reduce the levelized cost of electricity over 20 years to ₹1.8 (~$0.019)/kWh. This is 83% lower than the grid rate and 67% lower than the open access PPA model cited in the case study.

The total cost of power over 20 years is estimated at ₹450 million (~$4.74 million) under the rooftop solar PPA, compared with ₹2.65 billion (~$27.92 million) for grid electricity.

The project is expected to generate 13 million solar units in the first year and 250 million units over 20 years.

The arrangement gives the customer single-point accountability, with TwoPointO managing annual maintenance and using Tier 1 equipment. It also includes a generation guarantee and a pay-per-use structure.

The company expects scope for more than 20 MW of additional capacity with the same customer.

Mercom has previously written about how TwoPointO helped a pharmaceutical company in Himachal Pradesh mitigate high electricity costs and unreliable power supply with a customized 1.122 MW rooftop solar leasing solution.

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.