Gujarat’s Solar Advantage: A Smart Move for Industrial Energy Users

As the second leading state in India for renewable energy capacity with over 22 GW installed, Gujarat has long held a leadership position in India’s objective of achieving 500 GW of non-fossil fuel power capacity by 2030, and the state stands out for its rapid expansion, infrastructure readiness, and long-term business opportunity. For industrial and commercial users, Gujarat presents an opportunity for adopting solar not just as an environmentally conscious decision but as a strategic move that directly supports operational efficiency, energy cost control and global sustainability goals.

This momentum is the outcome of sustained policy direction and long-term planning. Initiatives like the Gujarat Solar Policy 2021 have played a foundational role in enabling today’s flexible solar models, especially for C&I consumers. By encouraging open access, third-party power purchase agreements and captive installations with benefits extended for the project life of 25 years for solar projects under this policy, it helped create an opportunity for businesses to shift to solar and reduce their over-reliance on traditional grid electricity.

As more and more businesses across industries turn to solar energy, Gujarat’s industrial players are well-placed to make the switch in a way that aligns with their long-term growth plans. The question today isn’t whether solar is viable; it’s how businesses can best take advantage of Gujarat’s unique solar ecosystem to drive value.

A Policy-Backed Ecosystem for Industrial Growth

Since its release, the Gujarat Solar Policy 2021 has played a key role in expanding the solar landscape, particularly for commercial and industrial users. The policy focused on open access, third-party sales and captive consumption models to support industrial energy needs across sectors like manufacturing, textiles, pharmaceuticals, food processing, and logistics.

Under this policy:

• Consumers with contract demand above 100 kW have been allowed to install solar systems for self-use, with banking and net metering provisions supporting predictable energy use.

• The policy also enabled third-party ownership and sale of solar power, encouraging private developers and industries to enter into power purchase agreements (PPAs) at competitive rates.

• With no ceiling on system capacity for captive projects, large-scale consumers have been able to design systems based on their needs and long-term energy goals.

This structured policy framework, combined with Gujarat’s strong grid infrastructure and capability, created a well-aligned ecosystem for industrial solar solutions. Instead of treating renewable energy as a compliance obligation, businesses in Gujarat have been able to approach solar as a strategic tool for lowering their operational costs by up to 30-40% and gaining long-term price stability.

Gujarat Solar Policy 2021 Highlights

A Proven Track Record in Solar Capacity

Gujarat’s solar growth over the past four years is a clear indicator of its industrial readiness for renewable energy. As of early 2025:

• The state’s total installed solar capacity stands at over 19,421 MW, making it one of the top contributors to India’s renewable energy targets.

• Of this, rooftop solar accounts for more than 5,310 MW, driven largely by the commercial and industrial segment.

• Gujarat contributes over 15.7% of India’s total renewable energy capacity, making it one of the leading states driving the country’s clean energy transition with a strong focus on solar, wind, and rooftop installations.

Flexible Solar Models for Industrial Needs

Flexible Solar Models for Industrial Needs

One of the strongest aspects of Gujarat’s solar landscape is the diversity of options available to industrial users. Businesses can choose models that align with their needs, space availability and financial strategy:

• Captive Rooftop Solar: Ideal for facilities with unused rooftop space. Power is generated and consumed on-site, reducing energy bills and transmission losses.
  
  

• Open Access and Third-Party PPAs: Businesses can procure power from solar plants located off-site, using the state’s robust grid infrastructure. This is a great solution for companies with high power demand and limited on-site space.
  
  

• Hybrid Models: By combining rooftop solar with open access PPAs, companies can boost energy reliability, keep costs in check and scale their setup as their needs grow.

Reducing Energy Costs with Solar

One of the biggest drivers for industrial solar adoption is the promise of long-term cost savings. Solar power can reduce electricity expenses by up to 40%, depending on system size, energy demands and financing model. Against fluctuating grid prices, solar offers pricing stability over 15–25 years, allowing companies to plan their budgets efficiently. 

Moreover, with multiple financing options available, ranging from full CAPEX models to OPEX-based power purchase agreements, businesses can choose the way that best suits their objectives.

Positioning for Sustainability and ESG Goals

Beyond cost savings, solar adoption helps businesses strengthen their reputation for being environmentally conscious. With global supply chains increasingly prioritizing sustainability, switching to solar enhances a company’s appeal to investors, partners, and customers.

Adopting solar also helps businesses stay on track with their ESG goals, ensuring compliance and requirements and being ready for any future rules that push for more renewable energy use.

Enernew: A Trusted Partner in Creating A Sustainable Future

Enernew is among the leading renewable energy companies in India, to help businesses rise above the traditional energy constraints and meet energy demands sustainably. With extensive industry experience in collaborating with over 50 companies and executing more than 100 MWp+ solar projects, we are committed to unleashing the true potential of solar energy and contributing to India’s ambitious target of achieving net-zero emissions by 2070. 

Schedule a consultation with us today to discover how we can help you make a smooth transition to an energy-efficient future, ensuring both sustainability and profitability.