India’s commercial and industrial (C&I) solar market is undergoing a significant transformation as consumer expectations are evolving and developers are adapting to growing requirements. The need for round-the-clock (RTC) renewable power, regulatory certainty and affordability are becoming key requirements for C&I customers.
One of the main trends emerging in the market is the changing nature of the demand. Data centres are becoming a major area of focus for renewable energy developers as their electricity requirements continue to grow. Unlike many traditional consumers, data centres require continuous power and place a strong emphasis on reliability. Their emergence is creating demand for renewable energy solutions that can support large loads, while ensuring supply consistency.
The healthcare sector also presents a similar challenge. Hospitals require dependable power round the clock and cannot afford disruptions to critical operations. While renewable energy procurement is helping healthcare facilities reduce their dependence on conventional power sources, reliability remains a key concern.
In a session on the “C&I Market: Industry Perspective” at Renewable Watch’s 19th edition of the “Solar Power in India” conference, the panel discussion focused on the evolving dynamics of India’s C&I renewable energy market, changing consumer expectations and emerging demand trends across sectors. The panellists were Sushmita Ajwani, Vice President – Business Excellence (BH Office), Aditya Birla Renewables; Alok A. Kumar, group lead, ESG and Sustainability, Fortis Healthcare; Sindhu Sharma, head – ESG, Nxtra by Airtel; and Rajan Saspara, Chief Executive Officer, Anand E-Beam Cables. Following are the key takeaways from the session…
From standalone solar to RTC solutions
A few years ago, many consumers entering the open access market were primarily looking to procure solar power owing to its favourable cost economics. As renewable energy procurement matured, requirements shifted towards hybrid solutions. Today, expectations are evolving even further. C&I consumers are increasingly seeking renewable RTC solutions and are placing greater emphasis on matching renewable energy supply with actual consumption patterns.
As a result, developers are being asked to provide increasingly customised solutions. The challenge is no longer limited to supplying renewable power during solar hours. Instead, the objective is to design solutions that can deliver renewable energy across a larger portion of the day, while maintaining reliability as well as commercial viability.
Open access economics is evolving with changes in banking provisions
While renewable energy procurement continues to offer financial benefits, the economics of open access projects is evolving. Historically, C&I consumers could achieve significant savings through open access procurement, supported by favourable banking provisions. However, recent regulatory changes are altering these economics, according to the panellists.
The changes in banking provisions and the growing requirement for hybrid and storage-backed solutions are gradually reducing some of the savings that C&I consumers were accustomed to earlier. This does not diminish the attractiveness of renewable energy procurement. Consumers are now increasingly evaluating projects not only on the basis of immediate savings but also on their ability to provide long-term energy security and support sustainability goals.
Regulation remains a critical variable
Regulatory developments continue to have a significant influence on investment decisions across the C&I market. Panellists highlighted how state-level policies can directly affect project economics and procurement strategies. Changes in banking provisions have emerged as a particularly important issue. Banking has historically played a crucial role in improving renewable energy utilisation, enabling consumers to maximise the value of renewable energy generation across different periods of the day.
However, changing regulatory frameworks are creating uncertainty regarding the long-term availability of these benefits. Developers and consumers are, therefore, increasingly seeking projects that can remain viable even in the absence of favourable banking provisions.
Specific examples discussed during the session highlighted how policy developments are shaping market behaviour. The introduction of battery-related requirements in Rajasthan has brought energy storage into a sharper focus. Meanwhile, evolving banking provisions in states such as Maharashtra and concerns regarding long-term policy visibility in Karnataka continue to influence investment decisions.
Growing role of storage
As the market evolves, energy storage is beginning to attract greater attention. Battery energy storage systems are increasingly being viewed as a critical component of future renewable energy solutions. Storage can help address intermittency, support peak-hour supply and improve the overall reliability of renewable energy procurement.
It was also emphasised that storage should not be viewed as a standalone solution. Batteries are expected to function primarily as a support mechanism that complements solar and wind generation, rather than replacing them. The economics of battery storage also remains challenging. Battery prices continue to be influenced by global supply chains and raw material costs, making project economics difficult to predict. As a result, storage deployment is still being approached cautiously, with developers carefully evaluating the size and role of batteries within broader renewable energy solutions. Nevertheless, storage is expected to play a larger role as consumers increasingly seek higher levels of renewable energy replacement and greater supply reliability.
Grid stability emerges as a key focus area
The expansion of inverter-based renewable energy systems is raising new technical considerations related to harmonics, power quality and system behaviour. As a larger volume of renewable energy is integrated into the grid, it is becoming increasingly important to ensure stable and reliable operation.
This issue is particularly relevant as new categories of consumers, including large data centres, emerge as significant electricity users. The concentration of large loads and growing renewable energy penetration are creating new operational challenges, which require careful planning and coordination.
The industry has already witnessed increasingly stringent requirements related to forecasting, scheduling and grid compliance. These measures are expected to become even more important as renewable energy deployment continues to expand. The growing adoption of hybrid systems and storage technologies is also expected to contribute to improved system flexibility and grid stability in the years ahead.
A more mature market is taking shape
India’s C&I renewable energy market has entered a new phase of maturity. The market has moved well beyond simple solar procurement and is increasingly characterised by customised solutions, hybrid projects, evolving regulatory frameworks and growing consumer sophistication.
Businesses are becoming more aware about renewable energy procurement, while developers are responding with increasingly innovative offerings. The focus is gradually shifting from merely buying renewable energy to securing reliable, flexible and long-term energy solutions.
The evolution of consumer requirements is perhaps the clearest indicator of how far the market has come. A decade ago, most consumers were primarily looking for lower tariffs through solar procurement. Today, they are seeking higher renewable energy penetration, improved reliability, greater visibility on future costs and solutions that can align with their sustainability commitments.
While challenges related to regulation, land acquisition, transmission connectivity and policy uncertainty continue to persist, the market has shown a remarkable ability to adapt. The growing adoption of hybrid projects, the emergence of storage-backed solutions and the increasing focus on RTC renewable energy supply suggest that the next phase of growth will be driven not only by capacity additions but also by smarter and more flexible energy solutions.
As businesses across sectors continue to strengthen their clean energy commitments, the C&I segment is expected to remain one of the most important pillars of India’s renewable energy transition, creating opportunities for developers, consumers and technology providers alike.
