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Starting a Solar or Renewable Energy Business in India

Approvals and business models for clean power ventures.
23 September 2026 by
Starting a Solar or Renewable Energy Business in India
Gaurav Kumar
Other Licenses & RegistrationsComplete Guide3 min read
The short answer

Setting up a renewable energy business in India involves choosing a model such as EPC contracting, rooftop solar, open-access power sale or utility-scale generation, forming a company, securing land and grid connectivity, meeting technical rules such as using ALMM-listed modules where required, signing power purchase agreements, and obtaining approvals such as electrical inspector clearance and state nodal agency registration.

ModelsEPC, rooftop, open access, utility-scale
Key rulesALMM, CEA regulations, open access
ApprovalsState nodal agency, CEIG, DISCOM

Business models

ModelRevenue
EPCProject contracts
RESCO rooftopPower sale to building owner
Open accessPower sale to C&I consumers
Utility-scaleTender-based PPAs

Approvals

  1. Company and GST registration
  2. Land and conversion
  3. Connectivity from transmission utility or DISCOM
  4. Open access approval
  5. Electrical inspector approval

Incentives

Central schemes for rooftop solar and state renewable policies offer subsidies and waivers.

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Risks

Payment delays, grid curtailment and regulatory changes.

Frequently asked questions

Is SPCB consent needed for solar?

Solar is generally white category with minimal consent needs.

What is ALMM?

Approved List of Models and Manufacturers for solar modules and cells.

Can a startup become a solar EPC?

Yes, with technical capability and empanelment where required.

Is GST applicable on solar systems?

Yes, at rates notified for solar equipment and services.

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