What is Open-Access Solar?

What is Open-Access Solar?

What is Open-Access Solar?

Today, the majority of organizations are aware of climate change and increasing power requirements. They want to get as much of their energy from renewable sources as they can, in part due to the growing popularity of international pledges like RE100. While rooftop or onsite solar is a terrific place to start, many of our clients lack the space inside their buildings to install a solar power plant that would be able to meet the majority of their energy needs.

Grid-connected or “Open Access” solar power solves this issue by meeting all of our client’s energy needs on a large scale through the grid. One such example is Adobe India, which purchases all of the energy needed for its Bangalore site from open-access solar in Karnataka.

By obtaining renewable energy, a company may both save a lot of money on electricity and move closer to obtaining all of its energy needs from renewable sources. Open access solar power is a well-liked choice for generating electricity that enables businesses like yours the chance to fulfill all of their wants for electricity at prices lower than the going grid tariff electricity rates.

In India, the Electricity Act of 2003, which established rules for competition in the power industry, governs open access rights. 

Based on the location of the purchasing and selling entities, Open Access can be classified as follows:-

  • Inter-State Open Access: The buying and selling of energy by the businesses must abide by the rules of the Central Electricity Regulatory Commission (CERC), even when they are from different states. Under interstate open access, the purchase rights can be made for short-term periods, such as less than a month, medium-term periods, such as three months to three years, and long-term periods, such as twelve to twenty-five years.
  • Intra-State Open Access: The buying and selling entities in this situation are from the same state, as is clear from the name. It adheres to rules established by the State Electricity Regulatory Commission (SERC). It can also be divided into three categories: short term, medium term, and long term. The lengths of these terms vary according to the laws in each state.

How Open access power works:

  • One of the state’s solar farms will produce electricity, much like in a rural location with free land.
  • The solar power will be transferred to an existing sub-station or local sub-station from where it will be transferred to the national grid.
  • Large users in the state will thereafter receive the power via the current grid system.
  • A factory, an IT park, a five-star hotel, a hospital, or any other facility with a minimum contract requirement of 1000 kVA might be the power consumption.

4 Benefits of Open Access Solar Power System

  • Sustainability: Being one of the cleanest sources of energy, solar energy becomes a significant driver for many corporations.
  • Source Up to 100% of Solar Energy: Corporate entities can often get a sizable portion of their power through solar when solar energy is widely available. Even if you have a rooftop solar plant, you probably won’t have enough roof space to produce enough energy to cover most of your energy needs. So you need open access solar to fulfill your power needs.
  • Zero Up-front Investment: The consumer does not need to make an upfront investment because this is an energy sale strategy.
  • Reduce Electricity Cost: The tariff of solar power is significantly low than the cost of power through electricity

Between January and March 2022, India’s open access solar installations increased by 22 percent to 513 megawatts (MW). Over 5.7 GW of installed solar open access capacity was available in the open access market as of March 2022. The government of India announced the Green Open Access Rules 2022 in order to speed up its renewable energy initiatives even more.

The purpose of these regulations is to encourage the production, acquisition, and consumption of green energy, including through waste-to-energy facilities.

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