Quick definition: Offsite renewable energy refers to clean energy generated at a remote location and transmitted to the end-user through the power grid, enabling businesses to access renewable power without installing on-premises infrastructure.
Table of contents
- Understanding offsite renewable energy
- Key advantages
- India-specific context
- Practical applications
- How Neufin can help?
- Related terms
- FAQs
- Additional resources
Understanding offsite renewable energy
Offsite renewable energy represents a strategic approach to clean energy procurement where organizations source renewable power from facilities located away from their premises. This model operates through power purchase agreements (PPAs) or virtual power purchase agreements (vPPAs), allowing businesses to access renewable energy without geographical constraints.
Key advantages
The three primary advantages of offsite renewable energy include:
- Cost optimization: Organizations can benefit from economies of scale, as larger offsite facilities generate power at lower costs per unit. This typically results in 15-25% savings compared to grid electricity tariffs.
- Scalability and flexibility: Businesses can access renewable energy without space limitations or infrastructure investments, making it easier to scale consumption based on needs.
- Risk mitigation: Long-term PPAs provide price stability and protect against energy market volatility, while professional operators manage maintenance and technical risks.
India-specific context
In India, offsite renewable energy has gained significant traction, particularly after the implementation of open access regulations. States like Karnataka, Maharashtra, and Tamil Nadu have established favorable policies for offsite renewable procurement. For instance, Karnataka’s renewable energy policy 2022-27 specifically promotes offsite installations with banking provisions up to 12 months.
Practical applications
Common applications include:
- Corporate offices in metropolitan areas accessing solar farms in rural locations
- Industrial consumers utilizing wind energy from high-potential sites
- Data centers meeting renewable energy targets through hybrid wind-solar projects
How Neufin can help?
Neufin helps you successfully access offsite renewable energy sources for your company and make the switch to renewable energy. We provide the fastest way for companies to buy renewable energy in India. Companies choose Neufin because we provide –
- Guaranteed cost savings – Lower your electricity bills without operational headaches.
- End-to-end execution – From feasibility to power delivery, we handle everything.
- Zero upfront investment options – Easy and flexible financing through Neufin Capital
Related terms
- Power purchase agreement (PPA)
- Open access power
- Grid connectivity
- Renewable energy certificates
Frequently Asked Questions (FAQs)
What is the minimum consumption requirement for offsite renewable energy in India?
Most states require a minimum connected load of 1 MW for open access connectivity, though specific requirements vary by state.
How long do typical offsite renewable energy contracts last?
Contracts typically range from 10-25 years, with 15 years being the most common duration in India.
Can organizations combine multiple renewable sources in offsite procurement?
Yes, hybrid models combining solar and wind power are increasingly common, offering better power availability and cost optimization.
Additional resources
- Ministry of New and Renewable Energy guidelines
- State electricity regulatory commission websites
- Central Electricity Authority reports
Last updated: January 2024
Disclaimer: Information provided is for general guidance and may vary by location and specific circumstances. Please consult energy experts for detailed advice.
