Your cost per unit with solar
How the landed cost is built
Landed cost is what one unit of solar power really costs you once it reaches your meter, after every grid fee.
A developer’s PPA tariff is only the first layer. Between the plant and your meter sits a stack of regulated charges set by your state commission, and some units never reach you because they are lost in the network or deducted when you bank them. The stack typically adds ₹1.50–3.50/kWh on top of the PPA tariff depending on the state, which is why the same quote can be strong in one state and marginal in another.
- Wheeling charge
- Paid to the DISCOM for carrying power over the distribution network. Connecting at a higher voltage usually lowers it.
- Transmission charge
- Paid to the state transmission utility when the plant connects at transmission voltage. Inter-state projects also pay ISTS charges; the ISTS waiver for renewables has been phasing out since June 2025.
- Cross-subsidy surcharge (CSS)
- Compensates the DISCOM for the subsidy your tariff was funding. Usually the largest and most variable item.
- Additional surcharge
- Recovers the DISCOM’s fixed costs for power it had contracted to supply you.
- Losses and banking
- Energy lost in transmission and wheeling, plus the share deducted when surplus daytime units are banked for later use.
The formula
Group captive landed cost = effective energy cost + wheeling + transmission + SLDC/other
Third-party landed cost = group captive landed cost + CSS + additional surcharge
Not sure which structure fits? Read the group captive vs third-party PPA guide, or check what we’ve verified for your state.
Frequently asked questions
What is the landed cost of open access solar?
It is the per-unit price you actually pay at your meter: the PPA tariff plus wheeling and transmission charges, cross-subsidy surcharge and additional surcharge where they apply, scheduling fees, and the cost of units lost in transmission and banking.
Why is group captive cheaper than a third-party PPA?
Captive and group captive consumers are exempt from cross-subsidy surcharge and additional surcharge under Section 42(2) of the Electricity Act 2003. To qualify, consumers must hold at least 26% equity in the plant and consume at least 51% of its output. Odisha and Rajasthan have levied CSS even on captive projects, so check your state’s order.
Who can buy open access solar?
Under the Green Energy Open Access rules the eligibility threshold for renewable open access is 100 kW of contracted load, though state regulations and court rulings affect how it applies.
How accurate is this calculator?
The maths is exact for the charges you enter. Reference values are dated and sourced, but state charges change through tariff orders and court rulings. Confirm every figure against the current order for your DISCOM and voltage level before signing a PPA.
The formulas and sources behind this calculator are on how we calculate.