Group Captive solar enables multiple commercial and industrial power consumers to jointly build or invest in an off-site utility-scale solar park through a Special Purpose Vehicle (SPV). By collectively holding at least 26% equity and consuming at least 51% of generated power in proportion to equity shares, members secure complete exemption from the Cross-Subsidy Surcharge (CSS) and Additional Surcharge (AS) under the Electricity Act 2003.
Incorporation of generating Special Purpose Vehicle (SPV).
A dedicated generating company (SPV) is formed. Participating industrial consumers collectively hold at least 26% of the SPV equity capital in proportion to their contracted power off-take, with Chirayu Power and project partners holding the remaining equity.
Medium-to-large consumers looking to pool demand and minimize individual balance sheet equity commitments.
Special Purpose Vehicle formed for the solar asset
Industrial buyers jointly hold minimum 26% equity
Genuine equity with dividend rights fulfilling rules
Group Captive provides the cost advantages of large utility-scale solar farms combined with the regulatory exemptions of on-site captive solar plants.
100% Exemption from CSS
Waives the hefty Cross-Subsidy Surcharge (CSS) charged on standard third-party open access, saving ₹1.50 to ₹2.50 per unit on monthly electricity bills.
Utility-Scale Generation Efficiency
Benefit from lower CAPEX per MW, superior tracking technology, and specialized centralized maintenance of multi-MW ground-mounted solar parks.
Fractional Capital Investment
Instead of funding an entire 10 MW solar park alone, each company funds only their proportionate slice of the 26% group equity requirement.
| Metric | Group Captive Solar | Third-Party Open Access PPA | Standard Grid Utility Supply |
|---|---|---|---|
| Cross-Subsidy Surcharge (CSS) | Exempt (₹0/unit) | Payable (₹1.50 - ₹2.50/unit) | Built into HT retail tariff |
| Additional Surcharge (AS) | Exempt under valid captive status | Payable per tariff order | Built into retail tariff |
| Wheeling & Transmission Fee | Payable to STU / DISCOM | Payable to STU / DISCOM | Included in tariff |
| Capital Requirement | Fractional equity in 26% pool | Zero upfront capital | Zero capital (pure tariff) |
| Effective Landed Cost | ₹4.50 - ₹5.80 / unit (typical) | ₹6.50 - ₹7.80 / unit (typical) | ₹8.50 - ₹11.50 / unit (HT) |
