Establishing a solar power plant in India in 2025 involves navigating a complex landscape of policies, regulations, and financial considerations

 Establishing a solar power plant in India in 2025 involves navigating a complex landscape of policies, regulations, and financial considerations. Key aspects include securing land, obtaining necessary approvals, adhering to quality control orders, and potentially participating in competitive bidding processes. India's solar energy sector is experiencing significant growth, driven by government initiatives and increasing private sector investment, with a focus on both large-scale solar parks and rooftop solar installations. 

Key Legal and Regulatory Aspects:

Domestic Content Requirement (DCR):

According to S3WaaS, March 2025, MNRE has issued DCR norms for solar PV cells, specifying that they must be domestically manufactured using un-diffused silicon wafers for projects under MNRE schemes. 

Quality Control Orders:

According to the ministry of new and renewable energy, the MNRE has extended self-certification for SPV inverters above 100 kW until December 31, 2025, or until further notice. 

Open Access Rules:

According to the ministry of new and renewable energy, India has promoted renewable energy through the Green Energy Open Access Rules 2022 and the Electricity (Late Payment Surcharge and related matters) Rules 2002. 

Inter-State Transmission System (ISTS) Charges:

According to the ministry of new and renewable energy, ISTS charges for solar and wind power projects commissioned by June 30, 2025, have been waived for the inter-state sale of power. 

Renewable Purchase Obligation (RPO):

According to the ministry of new and renewable energy, a trajectory for RPO up to 2029-30 has been declared. 

Competitive Bidding:

Standard bidding guidelines have been issued for tariff-based competitive bidding for solar and wind power projects. 

Land Acquisition:

Land acquisition for large-scale solar projects can be a challenge. Government initiatives like solar parks aim to facilitate this by providing developed land with necessary infrastructure. 

Financing:

Securing financing for solar projects is crucial. Government schemes and private sector investments play a vital role in this process. 

Recent Developments and Trends:

PM-Surya Ghar:

The Prime Minister's Solar Household Scheme (PM-Surya Ghar), launched in February 2024, aims to add 40 GW of distributed PV capacity by 2026, with subsidies for residential rooftop solar installations. 

Solar Parks:

According to the ministry of new and renewable energy, the scheme for developing solar parks and ultra-mega solar power projects is targeting 40,000 MW of installed capacity by 2025-26. 

Floating Solar:

India is exploring floating solar power projects on reservoirs and lakes, with a target of 10 GW.