Regulatory hurdles become a daily reality for solar energy companies
India's solar energy sector is on the rise, with the country becoming the third largest solar energy generating nation in the world, producing 1,08,494 GWh of solar power. This significant achievement is not without its challenges, however.
Solar play, Emmvee Photovoltaic, has recently filed for a Rs 3,000 crore IPO, joining the ranks of companies navigating the complexities of the industry. The executive director of a renewable firm has expressed concerns about the industry's double whammy of depressed solar energy prices and numerous approvals, which require extensive planning.
Setting up a solar power plant in some states in India requires over 2,700 approvals and licences, including 799 unique regulatory obligations spread across central, state, and municipal requirements. To handle these challenges, companies have to plan everything much in advance compared to western countries.
Tata Power, not mentioned in the context of the solar power production or challenges, has implemented a software system to track and manage the various approvals needed for setting up solar power plants. Simarpreet Singh, executive director & CEO, Hartek Group, suggested that a single-window clearance system could significantly streamline the approval process for solar power plants.
Indian solar panel manufacturers must obtain a Bureau of Indian Standards (BIS) certification under IS 14286:2010 to ensure their products meet safety and quality standards required by the Ministry of New & Renewable Energy (MNRE). This involves registration on the BIS portal, sample testing in BIS-recognized labs, and the submission of documentation for verification before certification is granted.
Companies must also comply with the Approved List of Models & Manufacturers (ALMM) to be eligible for government tenders and subsidies. The government mandates adherence to this list to ensure product reliability and to promote domestic manufacturing, adding clarity for project developers and bidders.
Many approvals and subsidy applications are streamlined through platforms such as the National Portal for Rooftop Solar, which offer user-friendly interfaces for applying, tracking, and processing approvals. Partnering with certified installers further helps companies navigate regulatory and quality compliance requirements.
The government has taken steps to streamline the approval process, including implementing a mandatory time frame for enforcing new approvals, rolling out online application systems and centralized portals, and focusing on policy evolutions that support decentralized energy solutions, integration with energy storage, and grid management technologies.
Despite these challenges, industry leaders, including Praveer Sinha, managing director and CEO at Tata Power, have expressed a desire for shorter red-tape but have learned to live with the challenges. Waaree Energies' CEO Amit Paithankar does not believe that approval issues have hindered the pace of capacity additions in the solar sector.
In FY25, the country added 24 GW of solar and 10.6 GW in Q1FY26, a testament to the sector's resilience and growth potential. As the industry continues to evolve, it is clear that the focus will continue to be on streamlining the approval process and fostering a conducive environment for solar power production.
[1] India's Solar Energy Sector: Navigating Regulatory Challenges
[2] BIS Certification for Solar Panels in India: A Comprehensive Guide
[3] ALMM Compliance for Solar Modules in India: What You Need to Know
[4] Streamlining Solar Approval Process in India: The Role of Government Portals
- Solar play, Emmvee Photovoltaic, and other companies in India's solar power industry are dealing with complexities, including depressed solar energy prices and numerous approvals, which require extensive planning, as explained by an executive director of a renewable firm.
- To ensure their products meet safety and quality standards, Indian solar panel manufacturers must obtain a Bureau of Indian Standards (BIS) certification under IS 14286:2010, a process involving registration on the BIS portal, sample testing, and submission of documentation for verification.
- To be eligible for government tenders and subsidies, companies must comply with the Approved List of Models & Manufacturers (ALMM), a mandate aimed at ensuring product reliability and promoting domestic manufacturing.
- The Indian government is taking steps to streamline the solar approval process, implementing online application systems, centralized portals, and focusing on policy developments that support decentralized energy solutions, integration with energy storage, and grid management technologies.
