In the first half of 2025, India saw a significant increase in open-access solar capacity, with 3,792 MW added. This represents a 20% rise compared to the 3,180 MW added in the same period in 2024, according to Mercom India Research.
India Open Access Solar: Cumulative Capacity and State Contributions
India’s total open-access solar capacity has now reached an impressive 19.4 GW. The leading states driving this growth are Maharashtra, Karnataka, Gujarat, and Rajasthan, collectively accounting for 78% of the total open-access solar capacity.
Maharashtra leads the charge in open-access solar installations, adding 1,370 MW in the first half of 2025. This signifies a 20% increase from the 1,140 MW installed during the same period in 2024, bringing the state’s total open-access solar capacity to 5.2 GW.
Karnataka follows closely behind, adding 956 MW. While this represents a 12% decrease from the 1.1 GW installed in the first half of 2024, Karnataka’s total open-access solar capacity still reached a substantial 5.1 GW.
Gujarat added 718 MW in the first half of 2025, a remarkable 44% increase from the 500 MW added in the same period of 2024. This growth brings Gujarat’s total open-access solar capacity to 2.4 GW.
Rajasthan contributed 370 MW in the first half of 2025, a significant 60% increase compared to the 231 MW added in the same period in 2024. Rajasthan’s total open-access solar capacity now stands at 2.4 GW, bolstered by support from the Rajasthan Renewable Energy Corporation Limited (RRECL) and favorable policies like the Rajasthan Solar Energy Policy 2019.
India Open Access Solar: Investment and Pricing Trends
The average investment in open-access solar projects during the first half of 2025 was approximately $0.28 million per MW. This figure reflects a 6% increase from the first half of 2024. This rise in investment costs can be attributed to factors such as increased component costs, inflation, and ongoing supply chain disruptions.
Open-access solar prices in India ranged from INR 3-5 per kWh ($0.04-0.06) during the first half of 2025. Prices varied based on factors like location, project scale, and local electricity tariffs. States like Karnataka, Maharashtra, and Tamil Nadu generally offered lower prices, while states like Rajasthan and Gujarat experienced higher rates.
India Open Access Solar: Market Drivers and Challenges
Several factors drive the open-access solar market in India, including favorable government policies, rising electricity costs, and a growing demand for clean energy. Government initiatives such as the Green Open Access Rules, 2022, and net metering regulations have been instrumental in promoting open-access solar projects. Furthermore, the increasing demand for clean energy from businesses aiming to reduce their carbon footprints and enhance sustainability has further fueled market growth. This aligns with global trends, as seen with community solar projects like the one in Gainesville, New York[4]. The increasing utilization of American-made solar panels in projects like this also highlights a focus on domestic supply chains[2].
However, the market faces challenges, including regulatory changes, grid connectivity issues, the high initial capital investment required, and opposition from distribution companies (DISCOMs). These obstacles can impede the growth of open-access solar projects. The cancellation of the “Solar for All” program underscores the complexities of funding and policy within the renewable energy sector[5].
Despite these challenges, the Indian open-access solar market is projected to maintain its growth trajectory. This positive outlook is supported by continued government backing, corporate sustainability goals, and ongoing advancements in solar technology.
