New Delhi, 13th June, 2025: TeamLease Regtech, India’s leading Regulatory Technology (Regtech) solutions company, has released its report titled ‘Decoding Compliance Management for the Renewable Energy Sector’. The report examines the complex regulatory challenges faced by companies operating in India’s renewable energy space. It analyses regulatory frameworks, discusses key challenges, and offers actionable recommendations for staying on the right side of the law by design. 1um5n
Mr. Rishi Agarwal, Co-Founder and CEO, TeamLease RegTech
As of April 2025, India’s solar power installed capacity stands at 107.94 GW, making it the world’s third-largest generator of solar power. In of generation, India produced 75.57 billion units (BU) of solar power in the first eleven months of FY24 (April 2023 to February 2024). The market size was valued at USD 10.4 billion in 2023, projected to reach USD 24.9 billion by 2030 at a CAGR of 13.4%.
The report finds that a standalone solar energy producing plant in Maharashtra where the electricity is generated and transmitted through the grid, along with a corporate office in Haryana must comply with 799 unique regulatory obligations spread across 646 central, 153 state, and municipal requirements. These translate into 2,735 total compliance instances for a year.
From a regulatory category standpoint, labour-related compliances make up the largest share at 244, followed by secretarial (238), finance and taxation (84), environment, health, and safety (58) and industry-specific regulations (106). These are followed by commercial (38) and general (31) compliance requirements. These are just the unique number of obligations, that inflate once factored with different frequencies. A company also needs to manage obligations such as maintaining s, making periodic payments, testing equipment, displaying statutory notices, handling audits, and reporting to various authorities.
The labour category entails 244 distinct compliances, which expand to 1,071 when ed for their required frequency. These cover critical legislation, including the Employees’ Provident Fund Act, Maternity Benefit Act, Payment of Wages Act, Sexual Harassment of Women at Workplace Act, and others. Under the Factories Act and Maharashtra Factories Rules, for example, pressure plants must be tested every four years, a requirement that is often overlooked but carries legal consequences. Of the 83 compliance provisions that include imprisonment, 77.1% are from the labour category, making it the most criminalised category of law.
Rishi Agrawal, Co-Founder and CEO, TeamLease RegTech “India’s renewable energy sector is thriving, fueled by robust policies and private investment. However, managing over 2,700 annual regulatory requirements at three levels of legislation and seven categories of the law requires a combination of people, process, technology, and partnerships. As the company expands its geographical footprint from a single state to multiple states, the numbers grow exponentially. Managing them in an ad-hoc, paper-based, people-dependent compliance program leaves an organisation vulnerable. 9,331 annual regulatory changes compound the problem. The first step for organisations is to raise their awareness of the regulatory obligations. Proactively monitoring regulatory updates and maintaining a detailed compliance checklist can ensure adherence. Our goal is to provide the right tools, skills, and knowledge to reduce the information asymmetry, fostering a “Zero Tolerance” compliance culture.”
The report shows how complex compliance management is for renewable energy companies. These challenges grow significantly as businesses scale up operations and expand into new regions, and are further compounded by the absence of centralised regulatory visibility, inconsistent net metering policies across states, and lengthy approval processes requiring nearly 51 licenses and permits. To enable ease of compliance, the report recommends fostering collaboration with regulatory and industry stakeholders, maintaining a dynamic, digital compliance checklist, proactively tracking legal and regulatory changes, and conducting sector-specific due diligence and risk-based audits. It also emphasises the importance of building a strong culture of compliance driven by leadership and leveraging digital tools to streamline processes, enhance visibility, and reduce operational risk.
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