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

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

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

October 8, 2025
Saatvik Green Energy has secured new solar PV module orders worth more than INR7 billion (US$84 million), to be delivered in this financial year.
October 7, 2025
Juniper Green Energy through its subsidiary Juniper Green Sigma Eight has signed a 70MW power purchase agreement with renewable energy giant Tata Power. 
October 6, 2025
Indian infrastructure company focused on rooftop and ground-based solar power installations, PVV Infra has secured solar power orders worth INR7.9 billion (US$90 million) through two of its subsidiaries. 
October 6, 2025
Indian solar developer ACME Group has established a new subsidiary to manage its renewable equipment manufacturing business, under which it is planning to scale production of TOPCon PV modules.
October 6, 2025
Rajasthan government will develop 500MW/2,000MWh of standalone battery energy storage systems (BESS) with a four-hour single-cycle configuration and extended operational life.
October 2, 2025
The Indian solar industry has 86GW and 182GW of solar cell and module manufacturing capacity, respectively, expected to be commissioned by 2027.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK