Procedure to setting up a PV Power Plant in India

 Procedure to setting up a PV Power Plant in India



1. Select the capacity of project you want to set up. (For Example, 1MW or 20 MW or 100 MW)

2. Selection of land- It should be within 2km of power substation to reduce the power evacuation charges. Land requirement per 1MW varies from 4.5 acres to 6.5 acres.

3. Getting approval from government and owner for land clearance.

4. Choose mode of power plant setup-

    a. Off-Grid Captive Consumption for domestic premises

    b. Off-Grid Captive Consumption for commercial premises

    c. Grid Connected (Net Metered) Captive Consumption for domestic premises

    d. Grid Connected (Net Metered) Captive Consumption for commercial premises

    e. Sale of Power generated to local Distribution Company (DISCOM)

    f. Sale of Power generated to 3rd Party consumer (Industry or Commercial entity)

5. Check for government policy for selected mode.(Refer to MNRE (Union Ministry of New & Renewable Energy)  or State Energy Development Agency)

6. Look for financial back-up. (Private Equity participation, Crowdfunding, Bank loans, NBFC Loans and/or government subsidies)

7. Submit Solar Application Form and Solar Connectivity Application Form to the concerned authorities.

8. Clear the process no 7  and get the sanction letter.

9. Apply for PPA (Power Purchase Agreement).

10. Obtaining RFP (Request for proposal) document for Government E-Procurement/ E-tendering or Private Tenders)

    Participate in the Bidding process

    Submission of various legal and financial documents.

    Other evaluation process.

11. Successful bidders would get The Letter of  Intent/ Letter of Approval 

12. Contact a EPC company for design and installation.

13. Complete the Installation before COD( Comerical operation date mentioned in the PPA or the Bid Document)

14. Commissioning of your plant   



What are the mandatory/Legal documents that you would need prior setting up your Solar Power Plant ?

1.Industrial Clearance

2.Land conversion (Agricultural to Non-Agricultural)

3.Environmental Clearance Certificate from state PCB (Pollution Control Board)

4.Contract Labour License from state Labour Department

5.Fire Safety certificate from Fire Department

6.Latest tax receipt from the Municipal/Gram Panchayat for the factory land.

7.Auditor compliance certificate regarding fossil fuel utilization

8.Approval from Chief Electrical Inspector

9.Clearance from Environment/ Forest department

10.Registered Land purchase/Lease Documents 

11.Power Evacuation arrangement/permission letter from DISCOM (Distribution Company)

12.Confirmation of Metering Arrangement and location

13. ABT meter type, Manufacturer detail, Model, Serial No. details for Energy Metering.

14.Copy of PPA (important as Preferential PPA projects are not eligible for REC mechanism)

15.Proposed Model and make of plant equipment

16.Undertaking for compliance with the usage of fossil fuel criteria as specified by MNRE (Ministry of New & Renewable Energy)

17.Details of Connectivity with DISCOM

18.Connectivity Diagram and Single Line Diagram of Plant

19.Details of pending court cases with the Supreme Court of India or the High Court of state or any other lower courts.

20.Any other documents requested by SLDC (State Load Dispatch Center).

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