Indian Discoms handed increased targets for purchasing solar power

Facebook
Twitter
LinkedIn
Reddit
Email
Credit: IBC Solar

India’s Ministry of Power has raised its Renewable Purchase Obligations (RPO) trajectory for solar power.

The RPO is a mandate for states and Distribution Companies (Discoms) to purchase a certain percentage of their energy from renewables.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

India’s Discoms will now have to purchase 2.75% of their energy mix from solar during 2016/17, followed by 4.75% in 2017/18 and 6.75% in 2018/19. The new targets represent a significant ramp up.

Last January the Ministry of New and Renewable Energy (MNRE) joint secretary Tarun Kapoor announced that the solar RPO would be need to be set at 8% by 2022. At the time, Kapoor said raising the RPO was a necessity, describing it as “the single most important regulatory and policy mechanism of government of India to drive solar”.

However, the renewables industry has consistently cited the Discoms' lack of compliance with the RPO, although the Central Government’s UDAY scheme, which sought to alleviate Discoms' ballooning debts also seeks to address the lack of RPO enforcement.

The full RPO target guidelines are set out below:

Indian Ministry of Power RPO trajectory July 2016. credit: Bridge to India

Jasmeet Khurana, associate director, consulting, at Bridge to India, said the new guidelines should drive the next round of solar plans and tenders.

India recently sanctioned 10 ‘Solar Zones’ of 10,000 hectares each for both PV development (50%), manufacturing (25%) and small and medium enterprises, farmers and unemployed youth (25%).

Read Next

Premium
August 22, 2025
Indian PV manufacturers are facing double hit from US trade tariffs and anti-dumping measures on products sold in America.
August 21, 2025
National Thermal Power Corporation (NTPC), through its renewable energy arm NTPC Green Energy, has commissioned 212.5MW of solar capacity at its 1.25GW Khavda-I project. 
August 19, 2025
Indian renewable energy company SAEL Industries has signed two 880MW power purchase agreements (PPAs) with the Indian states of Gujarat and Punjab.
August 15, 2025
Indian domestic solar module manufacturing capacity has exceeded 100GW, up from just 2.3GW in 2014, according to minister Pralhad Joshi.
August 14, 2025
Cells and wafers have accounted for 22% and 20%, respectively, of China’s product exports in the first half of 2025, according to Ember.
August 13, 2025
Juniper Green Energy has secured INR17.39 billion (US$197 million) in debt financing from government-backed Indian Renewable Energy Development Agency (IREDA). 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines