4 Renewable Energy Solutions Every Industrial CXO Must Evaluate Before Making a Commitment (A Step-by-Step Guide)

“Go green or get blacklisted.”

That was the dilemma a CEO from a leading automotive company in Maharashtra was facing, just a few months ago.

Why?

Because the company’s top 2 customers, which together contributed to 70% of revenue, had given them the ultimatum to hit RE100 by 2027. Plus, their competitors had already reached RE50, RE70, or even RE100 levels.

The CEO wanted to take the company on the renewable energy path, but had many questions: “Where to start? What RE solutions are there? How should they be evaluated?”

If you are facing the same confusion and have no idea where to start your company’s renewable energy journey, then this guide is for you.

It will provide:

• Step-by-step clarity on the RE solutions available to you and the % replacement they provide
• The logical sequence for evaluating them
• Key Advantages of each solution
• A breakdown of the financial models available for both on-site and off-site options

4 Renewable Energy Solutions Available to Industrial Consumers

Industrial consumers today have access to four primary renewable energy solutions that can reduce their grid dependency, lower power costs by as much as 50%, and help achieve up to 100% of their sustainability goals.

These vary in terms of investment, complexity, scalability, and control.

Businesses can choose to commit to one solution or strategically combine multiple options to achieve their goals.

1/ On-Site Solutions

These are solutions that can be set up within the company premises. For on-site, companies mostly opt for solar solutions which can be set up either on the ground mount, carports, or rooftops of industrial units, warehouses, etc.

It allows businesses to generate clean power exactly where it is consumed.

If you want to cut electricity expenses and improve your ESG performance, then on-site solar solutions are one of the most accessible entry points.

Key Advantages

• 5–20% of replacement
• Can be implemented fast
• Low payback period of 3–7 years with solar
• Allows you to convert underutilized or unused roof space and parking lots into productive energy zones
• Low reliance on regulations

Financial Structures Available with On-Site Solutions

You can procure this solution under three financial structures, depending on your cash flow preferences, asset ownership goals, and risk appetite:

1/ OPEX:
A solar developer invests, installs, and maintains the system on your premises. You sign a long-term Power Purchase Agreement (PPA) and simply pay for the electricity you use.

• No upfront investment required
• Energy savings begin from Day 1
• Suitable for companies that prefer off-balance sheet models

2/ CAPEX (Self-Owned):
You pay the upfront cost of installing the solar system and own the asset. You get the full benefit of energy savings, depreciation, and potential tax incentives.

• Higher long-term ROI
• Requires upfront capital
• Suitable for companies with strong cash reserves or those looking to own the RE asset

3/ Deferred CAPEX:
A hybrid model where you pay a portion of the system cost upfront (typically 20–30%) and defer the remainder of the payment over several years.

Ownership gets transferred to you once the payments are complete.

• Lower capital burden
• Eventual ownership
• Suitable for companies that want to own RE assets without straining current liquidity

2/ Off-Site Solutions

Once you have evaluated on-site, the second solution to assess is an off-site RE solution.

An off-site solution means setting up or procuring power from renewable energy assets located outside your premises. These can be either within the same state (intra-state) or in another state (inter-state).

Types of Off-Site RE Projects You Can Choose

• Open Access Solar or Wind
  Purchase power from a developer’s solar/wind plant under long-term PPAs.
• Hybrid Systems (Solar + Wind)
  Helps balance energy generation across day and night or seasons.
• Round-the-Clock (RTC) Solutions
  Combines solar, wind, and BESS to ensure 24×7 power supply

Key Advantages

• Up to 50–60% Replacement
• Extremely scalable; can meet large-scale or even full facility demand (5 MW, 25 MW, or more) easily
• Low capital requirement in open access projects
• You can choose where and how to get your power based on your energy needs, local policies, and available power zones

Financial Structures Available with Off-Site Solar

1/ CAPEX
Your company directly invests in the development of a solar, wind, or hybrid power plant. These will typically be located close to your facilities or in regions with high irradiation (Solar energy) or wind speeds (Wind energy).

• Since 100% of the investment is made by the company, it has full ownership and control over the asset
• Eligible for banking, open access benefits, and RECs (state-dependent)
• Riskier investment; driven by regulations. Requires upfront capex, land acquisition (or lease), EPC contracts, and DISCOM compliance
• Suitable for large companies with internal energy expertise

2/ Captive/Group Captive
Under Indian Electricity Act norms, this model requires the company (or group of companies) to own at least 26% equity in the RE plant and consume at least 51% of the power generated. The project is developed by a third party, but you become a co-owner.

• Low upfront investment in the project
• Exempt from cross-subsidy surcharges (CSS) in many states
• High regulatory compliance but offers long-term savings
• Suitable for mid-to-large energy consumers (1 MW and above)

3/ Third Party Financial Structure
A long-term power purchase agreement (PPA) with a developer who sets up, owns, and operates the RE plant. You simply purchase electricity at an agreed tariff typically lower than the grid tariff, for a fixed term (10–25 years).

• No capital investment required
• Low risk
• Cross-Subsidy Surcharge (CSS) and Additional Surcharge are levied which often reduce or eliminate energy cost savings
• Suitable for companies that want a hands-off model

3/ Virtual Power Purchase Agreement or VPPA

In a VPPA, you enter into a power purchase agreement virtually only to procure the greener attributes of the plant.

It is a financial contract, not a physical energy delivery agreement.

This solution helps companies support and claim the benefits of renewable energy generation without directly receiving the power.

This is not a cost-saving solution as of now. But since green energy is likely to become more expensive in the future, Virtual PPA can be a great investment!

Key Advantages

• Offers 15% Replacement
• Useful when your plant site can’t accommodate solar, or open access isn’t feasible in your area due to regulatory restrictions
• Protects against long-term market price volatility for electricity
• Highly effective for companies aiming for 100% renewable energy or Net Zero targets

4/ BESS

The final solution you must consider is a Battery Energy Storage System or BESS.

Battery prices have fallen dramatically in the past few years. In India, the Levelized Cost of Storage (LCOS) dropped from around ₹8–9/kWh in 2022 to approximately ₹6–7/kWh by 2024. BESS costs are further projected to decline at a rate of 7% annually.

BESS is a critical solution because you can save the excess generation from solar during the day, store it, and use this energy during evening peak hours. It is an attractive solution to mitigate your peak hours requirement.

It’s not at cost parity as of now except in some states or in some situations. But now, the central government and some state governments are mandating that a percentage of your solar or wind solution should include BESS.

BESS is undoubtedly the future!

Key Advantages

1. Store excess solar energy generated during the day and deploy it during peak grid tariff hours
2. 24×7 RE usage which overcomes intermittent generation of solar/wind and constant industrial loads
3. Great options for regions with grid instability or frequent voltage fluctuations
4. Improves the utilization and ROI of existing solar/wind/hybrid projects

How to Choose the Right RE Solution for Your Company?

Follow this simple checklist.

1. On-Site Renewable Energy (Solar – Rooftop, Carport, Ground-Mount)
Choose this if:

• You have idle rooftop, parking, or ground space within the premises
• Your operations are mostly during daylight hours
• You want quick, visible results
• You prefer simpler approvals and faster project timelines

2. Off-Site Renewable Energy (Open Access Solar / Wind / Hybrid)
Choose this if:

• Your electricity demand is more than 1 MW consistently
• You have limited on-site space or want to go beyond rooftop capacity
• You’re open to long-term PPAs (10–25 years)
• You aim to replace 50–80% of your power consumption with RE

3. Virtual PPA (VPPA)
Choose this if:

• Your facility is in a location where setting up open access power is difficult
• You have RE100 or SBTi commitments but can’t physically procure RE
• You operate in multiple regions or globally, and need flexibility

4. Battery Energy Storage Systems (BESS)
Choose this if:

• You face peak-time tariffs, demand charges, or frequent load shedding
• You already have RE (on-site or off-site) and want to store excess energy
• You want round-the-clock reliability
• You are okay with a longer ROI

Pro Strategy Tip for CXOs

No solution is perfect. Most successful RE transitions have a smart mix of renewable energy solutions in their portfolio.

Think of On-site solar for quick ROI, off-site for scale, BESS for consistency, and VPPAs if you have physical limitations but the capital to decarbonise.

If you’re even slightly unsure about which solution works best for your business, let’s talk.

In just one conversation, we’ll decode your electricity bill and walk you through all on-site and off-site options for your specific needs.

That one conversation gives you a clear read on your options — and can save you months of research time.

About Infinia Solar

Infinia Solar is India’s leading buy-side renewable-energy advisory. We help large Commercial & Industrial buyers procure the right renewable energy — from the right developers, on the right PPA terms — representing the buyer, never the developer.

We’ve advised 65+ corporates across 19 states, enabling 1.6 GW of solar, wind and hybrid capacity and ₹6,500 Cr of projects across 150+ PPAs with 40+ developers — and zero portfolio defaults.