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Open Access Solar · Madhya Pradesh

Open Access Solar in MP:
A Plain-English Guide

What it is, how the charges work, why the numbers still deliver a 40% saving, and why MP industry is moving fast on this right now.

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What is Open Access? How it works The charges Why it still saves 40% RPO & Green Zone r-solar's edge FAQ

MP Regulatory Reference

Open Access Solar — MP Policy at a Glance

Eligibility (MPERC rules)
  • Minimum contracted demand: 1 MW (Long-Term Open Access)
  • Grid connection: 33 kV or above
  • Rooftop behind-the-meter: from 500 kW (no OA charges)
  • Application submitted to SLDC; decision within 30 days
Key charges (FY 2025–26)
  • Transmission charges: ~₹0.30–0.45/kWh
  • Wheeling charges: ~₹0.50–0.60/kWh
  • CSS: waived in Green Zone clusters (Pithampur, Mandideep, Dewas, Indore SEZ)
  • RPO: OA units count towards annual compliance

Charges set annually by MPERC. Green Zone benefits under MP RE Policy 2025. Scroll down for the full cost analysis and how OA compares to rooftop solar.

The Basics

What Is Open Access Solar?

India's electricity grid has traditionally been a one-way system: power plants generate, DISCOMs (state utilities) distribute, and consumers pay whatever tariff the regulator sets. Open Access breaks this monopoly for large consumers.

Under Open Access, a qualifying industrial consumer can contract electricity directly from a renewable generator, like an r-solar plant, at a negotiated tariff. They continue using the existing grid infrastructure (wires, substations) and pay regulated charges for that usage, but the energy itself is sourced from their contracted generator.

The result: A factory paying ₹7.50/kWh to the DISCOM can switch to paying ₹4.50/kWh under an Open Access PPA, saving ₹3.00 on every unit consumed from the plant, for 25 years.

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Two types of Open Access
solar_power Short-Term Open Access (STOA)

Scheduling-based, month-to-month. Good for testing the market. Higher regulatory risk. Not suitable for long-term project financing.

description Long-Term Open Access (LTOA): Our Model

Granted for 25 years under a signed PPA. Enables project-level debt financing. Predictable, bankable, and the foundation of our RESCO/OPEX model.

Eligibility & Flow

Who Qualifies and How It Works

In Madhya Pradesh, Open Access is available to consumers connected at 33 kV or above with a contracted demand of 1 MW or more. For smaller consumers (down to 500 kW), behind-the-meter rooftop OPEX is the equivalent model.

1
Consumer Applies for Open Access

The industrial consumer (or their developer, us) applies to the SLDC (State Load Dispatch Centre) for Open Access approval. For LTOA, this requires a signed PPA to be attached.

2
SLDC Grants Connectivity & Scheduling Rights

The SLDC allocates transmission capacity and assigns scheduling rights. r-solar's plant gets a generation schedule tied to the consumer's load pattern.

3
Plant Generates, Grid Wheels the Power

r-solar's plant generates solar electricity. It is injected into the 33 kV grid and "wheeled" to the consumer's facility. The grid acts as the transport network.

4
Consumer Pays Two Bills

One invoice from r-solar at ₹4.50/kWh for the units consumed. A reduced DISCOM bill for the remaining grid top-up (nights, cloudy days, and demand above the plant's output).

MP Eligibility Checklist
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Contracted demand ≥ 1 MW

For LTOA ground-mount. Rooftop behind-the-meter from 500 kW.

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33 kV or above grid connection

11 kV consumers can upgrade connection. r-solar helps assess feasibility.

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Located within 5 km of a 33 kV substation

Critical for grid evacuation feasibility. We check this at site qualification.

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No existing electricity dues to DISCOM

SLDC requires a clean dues certificate before granting OA status.

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Madhya Pradesh jurisdiction

Our focus is MP (MPERC jurisdiction). Each state has its own OA regulations.

The Numbers

Open Access Charges in MP: Fully Decoded

These are the MPERC-regulated charges that apply when power is wheeled from a generator to a consumer via the grid. They are transparent, regulated, and built into our PPA pricing model.

MPERC FY 2025–26 · 33 kV Consumer
LCOE (our generation cost) ₹2.80–3.20
+ Wheeling charge ₹0.18
+ Transmission charge ₹0.86
+ Cross-Subsidy Surcharge (CSS) ~₹0.20
= Landed cost (range) ₹4.04–4.44
PPA offer (with margin) ₹4.50/kWh
MP grid tariff (11 kV industrial) ₹7.50/kWh
40% saving on every unit
What Each Charge Covers
electric_bolt
Wheeling Charge: ₹0.18/kWh

Paid to the DISCOM for using their local distribution infrastructure to deliver power from the 33 kV network to the consumer's premises. Think of it as the "last mile" delivery fee.

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Transmission Charge: ₹0.86/kWh

Paid to MPPTCL (MP Power Transmission Company) for using the high-voltage transmission network (220 kV / 400 kV lines and substations) to carry power from the generation site to the consumer's grid zone.

balance
Cross-Subsidy Surcharge (CSS): ~₹0.20/kWh

Compensates the DISCOM for loss of a paying industrial customer (who cross-subsidises residential/agricultural consumers). The CSS is set by MPERC annually and is waived in designated Green Zone industrial areas.

Why the numbers still work: Even after all three charges (~₹1.24/kWh total), the all-in landed cost of ₹4.04–4.44/kWh is well below the ₹7.50/kWh MP industrial tariff. This gap will widen further as grid tariffs continue their historical 8–12% annual increase.

Side by Side

Grid vs Open Access PPA

Current Grid (DISCOM)
₹7.50

/kWh, and rising ~10%/yr

  • closeTariff hike every year
  • closeNo RPO compliance benefit
  • closeNo ESG credentials
  • closeFull exposure to energy cost inflation
RECOMMENDED
r-solar Open Access PPA
₹4.50

/kWh, fixed for 25 years

  • checkFixed tariff, immune to hikes
  • checkSatisfies 30% RPO mandate
  • checkScope 2 reduction for ESG
  • checkZero capex for the consumer

Based on MPERC FY 2025-26 tariff order. Indicative estimates; actual savings modelled per facility.

Regulatory Tailwinds

RPO Mandate & Green Zone Benefits

Two regulatory factors are making Open Access solar not just attractive, but compulsory for large MP industrial consumers.

policy
MP RE Policy 2025: 30% RPO Mandate

Large industrial units (obligated entities) must source a minimum 30% of total electricity consumption from renewable sources by FY2027, rising to 50% by FY2030. Non-compliance attracts financial penalties payable to MPERC.

An Open Access solar PPA from r-solar directly satisfies this obligation. We provide monthly generation certificates that your team submits in your annual RPO compliance filing.

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Green Zone Benefits

MP RE Policy 2025 designates certain industrial corridors as Green Zones, including Pithampur, Mandideep, Dewas, and Indore SEZ. Green Zone consumers receive:

  • Electricity duty exemption on renewable energy consumed
  • Waiver of Cross-Subsidy Surcharge (CSS)
  • Land rate rebates for solar projects in approved industrial corridors
  • Priority SLDC scheduling for Open Access
eco
ESG & Scope 2 Reporting

Export-oriented manufacturers face increasing scrutiny from international buyers on Scope 2 (purchased electricity) emissions. An Open Access solar PPA provides verifiable, third-party-certified evidence of renewable energy sourcing, directly reportable under GHG Protocol, CDP, and India's BRSR (Business Responsibility and Sustainability Report) framework.

trending_up
7.8 GW Added in India in 2025

India added a record 7.8 GW of new Open Access solar in 2025. Institutional buyers (Amplus, ReNew, Fourth Partner Energy) are actively acquiring portfolios of PPAs in MP. The platform sale market is real, which is why r-solar is building toward an institutional exit at 100 MW.

Why r-solar

Our Structural Advantage in MP

National developers operate from Delhi or Bangalore. We operate from Barwani and Indore. That difference matters more than it sounds.

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Local Roots

1,000+ installations in MP. Existing relationships with factory owners, DISCOM officials, and local EPC contractors in the Barwani–Sendhwa–Indore belt.

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Faster Execution

LOI to commissioning in 6 months for a 5–10 MW plant. National players take 12–18 months. Our local approvals track record and EPC partnerships (Solluz, ISES Indore) drive this speed.

memory
Tech-Enabled O&M

IoT data logger installed from Day 1. Real-time generation data, automated billing, and monthly compliance reports, visible to the off-taker via our dashboard.

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25-Year Partnership

We own the asset. Our incentives are perfectly aligned with yours: more generation = more revenue for us = more savings for you. We're not just an installer who walks away.

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FAQ

Frequently Asked Questions

For Long-Term Open Access (LTOA) ground-mount projects, MPERC requires a contracted demand of ≥1 MW and a 33 kV grid connection. For rooftop behind-the-meter projects (no Open Access charges), we work from 500 kW upward. If your current connection is at 11 kV, upgrading to 33 kV may be feasible depending on substation proximity. r-solar assesses this at the site qualification stage, at no cost.
MPERC regulations set strict timelines for SLDC to respond to Open Access applications (typically 30 days for LTOA). DISCOMs have limited grounds to deny a compliant application. The main delay risk is grid feasibility. If the nearest 33 kV substation is congested, connectivity may need to be deferred. r-solar conducts a grid feasibility check before LOI to ensure this is a go/no-go filter rather than a post-commitment risk.
Open Access charges (wheeling, transmission, CSS) are set annually by MPERC and can change. Our PPA pricing accounts for this by including a regulatory pass-through clause. If OA charges increase, the consumer absorbs the incremental cost rather than r-solar. This is standard market practice. Importantly, even with significant charge increases, the 40% saving versus the grid rate provides a large buffer. We model stress scenarios during the PPA negotiation.
Yes. MP RE Policy 2025 waives the Cross-Subsidy Surcharge (CSS) for renewable energy consumers in designated Green Zone industrial areas. Current Green Zone clusters include Pithampur, Mandideep, Dewas, Indore SEZ, and select corridors in the Narmada Valley industrial belt. r-solar helps you confirm whether your facility falls within a notified Green Zone and coordinates the CSS waiver application with MPERC as part of the PPA process.
Yes. Units purchased through a registered Open Access PPA from a MNRE-accredited generator directly count towards the buyer's RPO obligation under MP RE Policy 2025. r-solar is registered as a renewable energy generator with MPERC. Every month we provide a generation data certificate that your team includes in the annual RPO compliance filing submitted to MPERC. We make this process entirely seamless.

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