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Typically, consumers with annual electricity expenses exceeding ₹20 lakh can achieve significant savings through captive solar.
A solar power plant is developed for captive consumption, sized to your facility's load and consumption profile.
The consumer acquires a minimum 26% equity stake in the project as required by captive power regulations.
The plant generates solar electricity during daylight hours — clean, predictable, and significantly cheaper than grid power.
Electricity is transmitted to the consumer through the grid network where applicable, via open-access wheeling.
The consumer utilizes at least 51% of the generated power annually to maintain captive status under regulations.
Monthly electricity costs are reduced through lower-cost solar power — savings of 30–60% versus conventional tariffs.
Reduce electricity expenses by 30% to 60% compared to conventional utility tariffs — every solar unit replaces a grid unit.
Most captive solar projects achieve payback within 3 to 5 years, depending on tariff and consumption pattern.
Lock in a predictable energy cost for the next 20–25 years — insulate your operations from rising DISCOM tariffs.
Reduce dependence on fluctuating grid electricity prices and gain greater control over your long-term energy strategy.
Lower carbon emissions and support corporate sustainability goals — meet ESG and Scope 2 reduction targets.
Modern solar power plants deliver reliable performance for over 25 years with proper operations and maintenance.
Lower operating costs improve profitability and competitiveness — energy savings flow straight to your bottom line.
The consumer invests directly in the solar project and owns the asset outright.
The project is funded through a bank loan or financial institution.
An investor develops the solar project; the consumer retains the required ownership stake.
Captive power projects are governed by the provisions of the Electricity Act, 2003 and the Electricity Rules, 2005.
Captive users must own at least 26% of the equity share capital in the captive generating plant. Example: in a 1 MW SPV, the consumer holds ≥26%; the remaining 74% can be held by investors or developers.
Captive users must consume at least 51% of the electricity generated annually. Example: 15 lakh units generated → consumer must use at least 7.65 lakh units. Failure may lead to loss of captive status.
For multiple consumers: collectively ≥26% ownership and ≥51% consumption. Consumption should generally be in proportion to shareholding as per applicable regulations.
For off-site captive projects, power is transmitted through the grid. Open Access approvals are required from relevant authorities; transmission, wheeling, scheduling and regulatory charges apply.
| Consumer | Ownership | Power Allocation |
|---|---|---|
| Company A | 10% | 40% |
| Company B | 8% | 30% |
| Company C | 8% | 30% |
| Total | 26% | 100% |
| Consumer Type | Typical Size |
|---|---|
| Hotels | 200 kW – 2 MW |
| Malls | 500 kW – 5 MW |
| Cold Storages | 250 kW – 2 MW |
| Industries | 500 kW – 50 MW+ |
| Hospitals | 200 kW – 2 MW |
| Particulars | Value |
|---|---|
| Plant Capacity | 500 kW |
| Annual Generation | 7.5 – 8.0 Lakh Units |
| Electricity Cost Before Solar | ₹60 – 75 Lakh / Year |
| Potential Annual Savings | ₹25 – 35 Lakh |
| Project Life | 25+ Years |
| Typical Payback | 3 – 5 Years |
*Actual savings may vary depending on location, tariff, and energy consumption patterns.
| Particular | Value |
|---|---|
| Plant Capacity | 500 kW |
| Project Cost | ₹2.25 Crore |
| Annual Generation | 7,50,000 Units |
| DISCOM Tariff | ₹8.00 / unit |
| Effective Solar Cost | ₹3.50 / unit |
| Savings Per Unit | ₹4.50 / unit |
7,50,000 × ₹4.50 = ₹33,75,000 per year in electricity savings at ₹8/unit tariff.
Payback period ~6.7 years at ₹8 tariff. Total 25-year savings exceed ₹8.4+ Crore.
| Particular | Value |
|---|---|
| Grid Tariff | ₹11.00 / unit |
| Solar Cost | ₹3.50 / unit |
| Savings Per Unit | ₹7.50 / unit |
| Annual Savings (7,50,000 × ₹7.50) | ₹56.25 Lakh |
| Project Cost | ₹2.25 Crore |
| Payback | ~4 Years |
| Stakeholder | Share | Investment |
|---|---|---|
| Consumer | 26% | ₹58.5 Lakh |
| Investor | 74% | ₹1.66 Crore |
| Total Project Cost | 100% | ₹2.25 Crore |
With annual savings of ₹56.25 lakh against a consumer investment of ₹58.5 lakh, effective ROI ≈ 1–2 years on consumer equity contribution — depending on project structure, wheeling, banking, and PPA terms.
| Consumer Type | Tariff | Expected Payback |
|---|---|---|
| Industry | ₹9–12 / unit | 3–5 Years |
| Mall | ₹10–13 / unit | 3–4 Years |
| Hotel | ₹9–12 / unit | 3–5 Years |
| Hospital | ₹8–11 / unit | 4–6 Years |
| Cold Storage | ₹8–10 / unit | 4–6 Years |
*Actual ROI depends on project location, generation, financing structure, open-access charges, and applicable state regulations.
Min. ownership
Min. self-consumption
Tariff savings
Asset life
Everything from ownership rules to project life. Have a different question? Drop us a message and we'll reply within a day.
Reduce energy costs, improve sustainability, and secure long-term power savings with a captive solar solution from Vermson Energy. Contact us today for a free energy assessment and customized savings report.
