India tenders 700MW solar for commercial and industrial buyers

India has floated a tender for 700MW of solar capacity, with the power earmarked for commercial and industrial (C&I) buyers. The move comes as businesses increasingly seek to cut electricity costs and meet sustainability goals.

The tender was issued by the Solar Energy Corporation of India (SECI), the country's central agency for renewable energy procurement. It falls under the 'ISTS-connected' category, meaning the projects can be set up anywhere in India and connected to the inter-state transmission system.

Developers will have to set up projects and sell the power to C&I consumers, who typically pay higher tariffs than industrial or residential users. This makes them an attractive market for solar developers, as they can often sign power purchase agreements (PPAs) at rates above the average cost of generation.

The tender is part of a broader push by the Indian government to boost solar capacity, which stood at around 60GW as of mid-2026. The country aims to reach 280GW of solar by 2030, as part of its commitment to increase non-fossil fuel capacity to 500GW.

Industry experts say the C&I segment is growing rapidly, driven by falling solar costs and rising grid tariffs. Many companies are also under pressure from customers and investors to reduce their carbon footprint.

The tender requires bidders to quote tariffs for the full 25-year PPA period. SECI will sign PPAs with successful bidders, who will then need to find C&I buyers. Alternatively, developers can sign direct PPAs with consumers, with SECI acting as a facilitator.

This is not the first such tender. SECI has previously auctioned capacity for C&I offtake, and the response has been strong. In the last such auction, tariffs ranged from ₹2.50 to ₹2.70 per kWh, which is competitive with conventional power.

The deadline for submitting bids is expected to be in early October, with the auction likely to take place later that month. SECI has not yet announced the exact dates.

India's solar market has been booming, with record installations in the last fiscal year. However, challenges remain, including delays in land acquisition and grid connectivity. The government has been trying to address these issues by streamlining approvals and expanding transmission infrastructure.

For C&I buyers, the tender offers a chance to lock in long-term power prices, shielding them from volatile fossil fuel costs. It also helps them meet renewable purchase obligations, which are being enforced more strictly.

The success of this tender will be watched closely by the industry, as it could set the tone for future C&I auctions. If it attracts enough bidders, it could pave the way for larger tenders, helping India accelerate its clean energy transition.