India’s C&I open access renewable energy capacity is projected to reach 57 GW by FY28, up from 40 GW expected by 2026-end
Growth will be supported by lower PPA tariffs compared to grid power, corporate net-zero and RPO targets, attractive returns, and strong developer credit profiles
Rising demand from the steel, cement, and data center industries will also drive its growth
Stable policies and timely transmission expansion will be critical to sustain investor interest, according to Crisil Ratings
India’s commercial and industrial (C&I) segment, comprising open access solar and wind, but excluding rooftop solar, is projected to have an installed renewable energy capacity of 57 GW by fiscal year 2028. This will be a 17 GW increase over the 40 GW that Crisil Ratings projects the segment to achieve by the end of 2026.
Similar to South Africa’s Wheeling policy, an open-access mechanism allows high-load consumers in India to source renewable energy directly from private generators using the existing grid infrastructure. As end users, corporates can either own or make equity investments in the project to secure tariff stability and add to their green credentials.
Mercom India Research estimates that the country’s open-access solar capacity totaled over 30 GW as of December 2025, with annual additions of 7.8 GW.
Crisil analysts list 5 key factors that will drive this growth: namely, favorable long-term power purchase agreement (PPA) tariffs vis-à-vis on-grid tariffs, net-zero targets, corporate renewable purchase obligation (RPO), attractive returns, and strong counterparty profiles for developers.
Further growth will also come from strong demand in end-user industries like steel, cement, and data centers, according to the research. Private equity-backed developers will lead capacity additions as they prefer the higher return on equity of C&I projects compared to utility-scale projects.
“Following the GEOA rules, major industrial states have announced policies for open access to fast-track RE adoption and attract investments,” said Crisil Ratings Director Gautam Shahi. “States are offering rebates on cross-subsidy, wheeling and state transmission utility charges if power is sourced intra-state. Such incentives lower the landed cost of power compared with on-grid tariff by 25-30%, driving capacity addition in this segment.”
Timely expansion of transmission infrastructure for power evacuation and stable policies across states will be critical for this growth. Any curtailment of open access incentives can dampen investor interest, it adds.
Crisil believes that some states may reassess open access incentives if the transition of C&I users impacts the finances of distribution utilities.
Meanwhile, healthy credit profiles of C&I developers will continue to drive growth in the sector, it adds.
An April 2025 Ember report projected India’s heavy industries to tap into the 20 GW open-access solar market to reduce their electricity costs, decarbonize operations, and achieve carbon neutrality, calling it a million-dollar cost-saving opportunity (see India’s Heavy Industries Can Leverage 20 GW Open Access Solar).