Energy security has become a growing concern in India due to global conflicts and geopolitical tensions. Recent disruptions in the energy chain have impacted nearly 40% of the country’s crude oil imports and 50% of LPG imports, resulting in increased fuel prices, higher electricity costs, and greater energy supply risks. While these factors continue to impact India’s energy infrastructure, entities such as Indian Oil Corporation Limited (IOCL), India’s largest public-sector oil and refining company, are identifying practical alternatives, such as solar, to improve energy resilience.
Reducing dependence on conventional power sources in a long-term initiative, IOCL has adopted rooftop solar at its Guwahati and Varanasi facilities to ensure an uninterrupted energy supply while improving operational efficiency. Indian Oil Corporation Limited (IOCL) commissioned a 150-kW & 125kW rooftop solar system at its Guwahati and Varanasi facilities, enabling operational resilience.
The 150kW system at its Guwahati facility supports a significant portion of the overall operational energy requirements and generates approximately 2,05,200 kWh annually. This has resulted in an estimated annual cost savings of ₹13,80,000, contributing to an estimated ROI within 4 to 5 years. While the 125-kW rooftop solar system at its Varanasi facility supports its overall operational requirements, while strengthening energy reliability and cost efficiency. The installed rooftop solar system generates approximately 1,71,000 kWh per year, resulting in an estimated annual cost savings of around ₹13,00,000, contributing to a payback period (ROI) of approximately 5.2 years.
The rooftop solar system supports fuel dispensers, lighting, CCTV, POS systems, an air compressor, signage, and EV charging stations, helping reduce dependence on grid electricity and diesel generators. At a time when energy security concerns and supply chain disruptions are becoming increasingly prevalent, rooftop solar provides a reliable source of power for critical operations. The transition to rooftop solar has also contributed to lower operational costs, improved energy efficiency, and greater sustainability in day-to-day operations.
Commenting on the growing adoption of rooftop solar by public sector companies, Radhika Choudhary, Co-Founder of Freyr Energy said, “Rooftop solar is increasingly emerging as a strategic investment for commercial and industrial infrastructure enabling public sector companies to lower electricity costs, improve operational efficiency, and strengthen energy reliability. Further, growing concerns around energy disruptions and supply chain uncertainties are accelerating the need for sustainable energy solutions as consumers seek greater energy resilience. Varanasi holds strategic importance in the fuel ecosystem as a major religious destination, attracting nearly 70 million pilgrims and tourists annually. Driving strong seasonal fuel demand from taxis, buses, tourist vehicles, freight movement, and significant intercity and interstate travel. Additionally, petrol stations in the northeast region face high operational stress and fluctuating demand, making reliable power essential for fuel dispensing, billing, lighting, and safety systems. For sectors such as fuel retail, solar plays a pivotal role in reducing dependence on conventional power sources.”
Varanasi is a key road connectivity hub in northern India. Positioned along key national highways, it connects eastern Uttar Pradesh with Bihar, Jharkhand, and Madhya Pradesh, acting as a crucial transit point for both interstate and intrastate movement. Whereas, Guwahati serves as the main gateway to Northeast India and is a key logistics, transport, and commercial hub for the region. Fuel demand in this region is high due to the movement of passenger vehicles, long-distance freight trucks, interstate transport, military activity, and logistics movement into states such as Arunachal Pradesh, Meghalaya, Nagaland, Manipur, Mizoram, and Tripura. As fuel stations rely on uninterrupted electricity for most of their operation, rooftop solar has emerged as valuable energy alternative in both the regions. Freyr Energy has played a pivotal role in solarising IOCL’s facilities across the country. This multi-state, multi-year initiative by the country’s oil giant reflects its commitment towards its sustainability goals.
As more petrol stations in Assam, Uttar Pradesh and other states adopt rooftop solar, the shift can play an important role in supporting India’s clean energy transition. With nearly 41,000 retails fuel outlets across the country a large-scale solar adoption across fuel station has the potential to significantly expand the renewable energy capacity, reduce the dependence on the grid and contribute to India’s target of achieving 500GW solar energy by 2030.
