- Group captive needs ≥26% equity and ≥51% consumption by the users (verify).
- These thresholds come from the Electricity Rules — confirm current figures.
- ALMM applies only if a scheme, tender or DISCOM behind the job requires it.
- DCR usually does not apply to privately funded captive projects.
- Fall below the tests in a year and the project can lose captive status.
Group captive is a popular way for businesses to buy cheaper solar power by co-owning the plant. But the structure comes with two hard tests — 26% equity and 51% consumption — and a common question: do ALMM and DCR apply? This guide answers both, with the thresholds you must verify.
What group captive solar is
Group captive is a model where several consumers jointly own a share of a power plant and consume the power it makes. Instead of one company building its own captive plant, a group of businesses co-invests and draws power in proportion to their stake. It can lower power cost and avoid some open-access charges.
To qualify as captive — and keep the benefits — the group must meet ownership and consumption tests set in the Electricity Rules. If they pass, the power counts as self-consumed rather than sold on the open market. The model sits close to open access; our open access and wheeling guide covers the wider wheeling rules.
The 26% equity and 51% consumption rule
Group captive status rests on two tests: the users together hold at least 26% of the equity in the plant, and they consume at least 51% of the power generated, in proportion to their share. Both must hold for the project to count as captive.
Why two tests, not one
The equity test proves the consumers genuinely own part of the plant. The consumption test proves the plant mainly serves its owners, not the open market. Together they stop a token shareholder from claiming captive benefits without real ownership or real use. These figures — 26% and 51% — come from the Electricity Rules and can be revised, so verify the current thresholds before you structure a deal.
The captive tests at a glance
Here are the captive tests in plain terms, what each requires, and why it exists. Treat the percentages as point-in-time — confirm the current Electricity Rules before you rely on them.
The 26% and 51% figures come from the Electricity Rules and can be revised — verify the current thresholds before you rely on them.
Does ALMM apply to group captive?
Whether ALMM applies to a group captive project depends on the scheme, tender or DISCOM behind it, not on the captive structure itself. Group captive is a power-procurement and ownership model. It does not, on its own, decide ALMM. The question is what rule sits behind the specific job.
It comes down to the project, not the model
A privately funded group captive plant with no subsidy and no government tender may not require ALMM-listed modules. But if the project draws on a government scheme, a tender clause, or a DISCOM rule that demands ALMM, then it applies. Confirm ALMM applicability for your exact project against the current MNRE order. The ALMM applicability guide walks through which projects are covered.
Does DCR apply to group captive?
DCR usually does not apply to a privately funded group captive project, because DCR is tied to schemes that demand domestic content — most clearly the PM Surya Ghar residential subsidy. A captive job with no subsidy and no domestic-content clause generally does not need a DCR certificate.
That said, read the specific terms. A tender or a state incentive attached to the project could still demand DCR modules. So the safe path is: assume nothing, and check the contract and scheme terms for any domestic-content requirement. Our DCR vs non-DCR guide explains when each is needed and the cost difference.
Why people get this wrong
The confusion comes from mixing two separate things: the captive ownership rules and the module compliance rules. They are decided by different authorities and answer different questions. Keep them apart.
- The 26% / 51% tests come from the Electricity Rules and decide if the project is captive.
- ALMM comes from MNRE and decides which modules are allowed for covered projects.
- DCR comes from scheme rules and decides if domestic content is required.
- Being captive does not automatically mean ALMM or DCR applies — or that it does not.
Treat the captive question and the compliance question as two checks. The C&I and group captive guide covers when ALMM and DCR are mandatory versus optional for these jobs.
Keeping captive status year on year
Captive status is not a one-time tick — it must hold each year. If the users fall below the 26% equity share or the 51% consumption level in a year, the project can lose captive status and the charges that go with it. So the tests need tracking, not just a one-off check at the start.
Equity can drift if shareholders change, and consumption can fall if a user's load drops. Both need watching. A project that slips below the tests may face open-access charges it expected to avoid. Verify the current rules each year, because the thresholds and the proportionality tolerance can be revised by the Ministry of Power.
What to put in your BOM
Your BOM should match the project's own compliance need — no more, no less. If the captive job has no ALMM or DCR requirement, you have a wider module choice and can optimise on cost and quality. If a tender or lender demands ALMM-listed or DCR modules, the BOM must meet that.
So the first step is to settle the compliance question, then build the BOM. Do not assume a captive project is exempt, and do not over-spec it for rules that do not apply. Either mistake costs money. Once you know the requirement, our ALMM applicability guide helps you confirm it and source accordingly.
How SuryaHub helps you track captive compliance
A captive project has two things to keep proving: its captive status and its module compliance. SuryaHub keeps both together. The government workflow record holds the ALMM and DCR proof for the BOM, while the project file tracks the equity and consumption position so you can see if captive status is at risk. The finance and GST module ties the numbers to billing. SuryaHub is pre-revenue; real pilots are Suryantra Energy and RGESPL, and every threshold here is point-in-time to verify, not a ruling.
Track captive status and compliance together
See how SuryaHub keeps equity, consumption and module proof in one place.
Related guides
Frequently asked questions
What is the 26% rule in group captive solar?+
The 26% rule means the captive users together must hold at least 26% of the equity in the generating plant to claim group captive status. A second test usually requires those users to consume at least 51% of the power. These thresholds come from the Electricity Rules and can change, so verify the current figures before you sign.
Does ALMM apply to group captive solar projects?+
Whether ALMM applies to a group captive project depends on the scheme, tender or DISCOM rules behind it, not on the captive structure alone. Many private C&I and captive jobs without subsidy or a government tender may not require ALMM, but some do. Confirm ALMM applicability for your specific project against the current MNRE order.
Does DCR apply to group captive projects?+
DCR usually does not apply to a privately funded group captive project, because DCR is tied to schemes that demand domestic content, such as PM Surya Ghar subsidy. A group captive job with no subsidy and no domestic-content clause generally does not need a DCR certificate. Always check the specific tender or scheme terms.
How is the 51% consumption rule measured?+
The 51% consumption rule means the captive users must consume at least 51% of the power the plant generates, in proportion to their equity share. It proves the plant mainly serves its owners, not the open market. The figure and the proportionality tolerance come from the Electricity Rules, so verify the current rule before relying on it.
Can a group captive project lose its captive status?+
Yes. A group captive project can lose its captive status if the users fall below the 26% equity share or the 51% consumption level in a year. Losing captive status can change the charges and benefits that apply. Track equity and consumption each year, and confirm the current tests, because the thresholds can be revised.
What modules should a group captive project use?+
A group captive project should use modules that match its own compliance need. If the project has no ALMM or DCR requirement, you have a wider choice of modules. If a tender or lender demands ALMM-listed or DCR modules, the BOM must meet that. Confirm the requirement first, then build the BOM to suit.
Sources & references
The captive thresholds and module-compliance rules come from primary government sources. The 26% and 51% figures can be revised — always verify the current Electricity Rules before you structure a deal.
- Ministry of New & Renewable Energy (MNRE) ↗
Publishes ALMM orders and the projects ALMM applies to.
- Ministry of Power ↗
Owns the Electricity Rules that define captive 26% and 51% thresholds.
- NISE DCR portal ↗
Issues DCR certificates where domestic content is required (verify URL).
Written by the SuryaHub team · reviewed against MNRE, Ministry of Power & NISE sources · updated 20 June 2026.
Method: Captive tests follow the Electricity Rules framework and are re-checked every 30 days. The 26% and 51% thresholds can be revised — verify the current rule before relying on it. This page is general guidance, not legal advice. SuryaHub is pre-revenue; only Suryantra Energy and RGESPL are real pilots.
Change log: 20 Jun 2026 — first published.