A smarter structure for industrial power procurement — lower landed cost, long-term price certainty
The group captive model gives large power consumers access to renewable energy at a significantly lower cost than standard open access — by structuring the arrangement as a shared ownership of the generating asset.
Talk to Our TeamWhat is group captive?
Under India's Electricity Act 2003, a captive power plant is one where the consumer holds an ownership stake in the generating asset and consumes the power it produces. The group captive model extends this to a group of consumers — each holding a defined equity stake in the plant and collectively consuming the power it generates.
The legal requirements for group captive status are:
- The group of consumers collectively holds at least 26% of the equity in the generating company
- At least 51% of the power generated is consumed by the equity-holding consumers
The regulatory framework governing group captive structures has evolved significantly with the Electricity Amendment Rules 2026. The core thresholds remain in place, but compliance requirements and charge applicability have been updated. We recommend discussing the specifics with us alongside your legal and finance teams before structuring an arrangement.
Why group captive delivers a lower landed cost
The primary financial advantage of the group captive structure over standard third-party open access is the exemption from Cross Subsidy Surcharge and Additional Surcharge.
These two charges are among the largest components of the landed cost of open access power. In Tamil Nadu, CSS and Additional Surcharge together can add ₹1.30 to ₹1.95 per unit to the cost of power procured under standard open access. Under the group captive structure, consumers are eligible for exemption from both charges — making the landed cost of power significantly lower.
For a facility consuming 5 lakh units per month, a saving of ₹1.50 per unit on CSS and AS alone translates to:
This is over and above the base saving from procuring solar power at a tariff below the DISCOM grid rate.
Note: The applicability of CSS and Additional Surcharge exemptions is subject to annual verification of captive status and prevailing state regulatory positions.
Group captive vs third-party open access — which is right for you?
Both structures deliver meaningful savings over grid power. The key differences are:
| Third-Party Open Access | Group Captive | |
|---|---|---|
| Equity stake in plant | No | Yes — defined stake in generating company |
| CSS and AS applicability | Applicable | Eligible for exemption |
| Landed cost | Lower than grid | Lower than third-party open access |
| Contractual complexity | Straightforward PPA | PPA plus equity arrangement |
| Capital requirement | Zero | Nominal equity investment |
| Best suited for | Consumers seeking simplicity | Consumers seeking maximum savings |
The right structure depends on your consumption profile, commercial objectives, and appetite for a slightly more structured arrangement. Both are available through Good Energies.
How Good Energies structures group captive
Good Energies owns and operates solar plants in Tamil Nadu that are already supplying power to industrial consumers under the group captive model. Each consumer holds an equity stake in the generating entity (created as an SPV), structured in compliance with the Electricity Act requirements, and receives power at a landed cost that reflects the CSS and AS exemption benefit. The arrangement is structured so that:
- The equity participation is defined clearly upfront
- Power scheduling and SLDC coordination is handled by Good Energies
- The consumer's obligations are limited to their power offtake commitment and equity holding
- Annual captive status verification is managed as part of the ongoing arrangement
How it works — from enquiry to power supply
Share your requirements
Tell us your facility location, connected load, and approximate monthly consumption.
We present the structure
Our team explains the group captive arrangement, the equity stake, the PPA terms, the savings analysis in the form of non-binding PPA term sheet, so you have a complete picture before committing to anything.
PPA and equity structuring
We proceed to structure both the Power Purchase Agreement and the equity arrangement in compliance with Electricity Act requirements.
Regulatory and grid setup
We coordinate with the SLDC and relevant DISCOMs to set up scheduling, banking, and open access arrangements.
Power supply begins
Solar power from our plants starts flowing to your facility at the agreed tariff — with the CSS and AS exemption benefit reflected in your landed cost.
Explore the group captive structure for your facility
See our operational group captive plants, or compare with our other offerings.