Group captive solar power generation in India

Collaborate for economies of scale

Under the group captive model, several power consumers in a given commercial or industrial cluster can come together (with or without an external investor) and set up a large solar power plant to achieve economies of scale.

The “group captive” model is based on the Electricity Act 2003. The act allows for a structure for supply of power to a group of consumers, treating them as captive consumers, as long as the following conditions are met:

  1. Not less than 26% of the ownership is held by captive consumers.
  2. Not less than 51% of the aggregate electricity generated in such plant, determined on an annual basis, is used for captive consumption.

Typically, group captive power projects have to operate within the ambit of the “open access” mechanism. “Open access” allows large power consumers (typically with a connected load of 1 MW and above) to buy power directly from the open market.

Headway Solar typically selects a potential industrial or commercial cluster and then tries to formulate an agreement that is suitable to multiple power consumers and the investors. Based on this approach we help set up a large solar project that caters to the long term power requirements of the customers.

We compeletely understand the regulations around the mechanism and ensure that there are no risks involved in such a transaction. Also, we ensure that you are chosing the best business model for procurement of solar power based on your requirements.

Want to set up a group captive solar project in India? Drop us a message and we promise to get back.

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