Regulatory guide: the process for obtaining renewable power
A general framework for how open access and renewable procurement work in India. Rules vary by state: treat this as an orientation, not a substitute for state-specific advice.
The national framework
Open access in India sits within a small set of central frameworks: the Electricity Act, 2003 establishes the right to open access; the Green Open Access Rules, 2022 lowered the minimum eligible load to 100 kW and simplified procedures; and the Renewable Consumption Obligation (RCO), under the Energy Conservation (Amendment) Act, 2022, sets a binding renewable-consumption target for large consumers, DISCOMs and captive users. (Position as of September 2026.)
The general process
Confirm eligibility
Check your connected/contracted load against your state's open access threshold (100 kW minimum, per the 2022 rules).
Choose your structure
Decide between a captive, group captive, or third-party open access model: each has different ownership and regulatory implications.
Apply for connectivity
Submit a formal application to your DISCOM / state transmission utility for grid connectivity and open access approval.
Secure regulatory approval
Your SERC reviews and approves the open access application, including wheeling and banking terms.
Execute agreements
Sign the PPA with your generator and the wheeling/connection agreements with the relevant DISCOM(s).
Commissioning & metering
Once the generator commissions the plant, net/gross metering is installed and billing begins flowing through the agreed structure.
What each charge means
| Charge | What it is |
|---|---|
| Wheeling charges | Fee for using the grid to transport power from the generator to your site, set by the state. |
| Cross-subsidy surcharge (CSS) (for non-captive plants) | A charge that compensates the DISCOM for the subsidy it would otherwise have collected from you as a captive tariff customer. |
| Additional surcharge (for non-captive plants) | Charged in some states to cover the DISCOM's stranded fixed costs when a large consumer moves to open access. |
| Transmission & distribution losses | A small percentage of energy lost in transit, typically deducted from the units you’re billed for. |
| Banking charges | Where applicable, a fee (sometimes in-kind, as a percentage of banked units) for the ability to export excess solar and draw it back later. |
The RCO compliance angle
If your organisation is a "designated consumer" under India's energy conservation framework, RCO isn't optional: it requires you to actually consume a rising share of renewable power, from roughly 30% today to 43.33% by FY 2029–30, enforced by the Bureau of Energy Efficiency. Non-compliance carries a buyout penalty set by CERC. Switching to open access RE is currently the most direct compliance path for most large consumers.
This is genuinely complex, and it changes by state. Wattmatch's marketplace is built to navigate this for you, aggregating state-specific regulatory data and appointing dedicated state-level teams to manage licensing and connectivity on your behalf.