Captive Power Plant
A captive solar plant is one where the consumer owns at least 26% equity and consumes at least 51% of the generation, qualifying for exemption from cross-subsidy surcharge under Indian electricity rules.
Group-captive structures let multiple industrial consumers share one plant while retaining captive benefits. The equity and consumption tests are audited annually — structure them correctly from day one.
In More Depth
The 26% equity and 51% consumption tests come from India’s Electricity Rules: a consumer (or group of consumers) must hold at least 26% of the plant’s equity and consume at least 51% of its annual generation to qualify as captive. Meeting them exempts the user from certain charges, including the cross-subsidy surcharge, which can make open-access solar competitive for industrial users. Confirm the exact test for your structure with a qualified advisor.
For MSMEs weighing this route, the economics sit alongside accelerated depreciation and the net-metering/open-access exemption window — see solar for MSMEs.
Frequently Asked Questions
- What qualifies as a captive solar plant in India?
- Under the Electricity Rules, the consumer (or a group of consumers) must hold at least 26% of the plant’s equity and consume at least 51% of its annual generation. Confirm the exact test for your structure with a qualified advisor.
- What is group captive?
- A structure where several industrial consumers jointly own a plant and use its power in proportion to their equity, keeping captive benefits while sharing the investment. The equity and consumption tests are audited every year.
Related Terms
Part of the HUM Solar Glossary — 75+ plain-language definitions for India’s solar ecosystem, maintained as a neutral reference. Browse all terms →
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