INTRODUCTION TO
THE ORDER
The Ministry of New
and Renewable Energy (MNRE) has issued a critical notification, the Solar
Systems, Devices, and Components Goods Order, 2025, introducing revised
efficiency and compliance standards for solar photovoltaic (PV) components in
India. This order supersedes the 2017 Solar Photovoltaic Systems Order while
ensuring stricter adherence to Bureau of Indian Standards (BIS) guidelines.
With India’s
ambitious renewable energy targets, this regulatory move enhances product
quality, consumer protection, and market standardization. This order is
analyzed by Eninrac Consulting, to present a detailed stakeholder impact
assessment and explore the broader industry implications.
Strategic Implications for the Indian Solar Industry of the Order
1. Rise in Production & Compliance Costs
- Manufacturers will face short-term cost increases due to technology upgrades and BIS certification fees.
- Over time, standardization can lead to economies of scale, reducing costs for bulk manufacturers.
2. Boost to Domestic Solar Manufacturing
- The order discourages low-efficiency, non-compliant imports, providing a competitive edge to local manufacturers.
- Make in India and PLI (Production-Linked Incentive) schemes could align with these standards, further accelerating domestic solar manufacturing growth.
3. Enhanced Investment Opportunities
- Higher efficiency standards make Indian solar projects more attractive to global investors and financiers.
- Improved regulatory clarity reduces risk perception in the sector, encouraging long- term capital inflow.
4. Improved Grid Stability & Energy Security
- High-efficiency PV modules increase the reliability of solar energy supply.
- Better performance ratios improve India’s ability to integrate renewables into the national grid.
ENINRAC
CONSULTING RECOMMENDATIONS FOR ACTIONABLES OF STAKEHOLDER’S
- Manufacturers: Invest in higher efficiency R&D and align with BIS certification protocols immediately.
- Project Developers: Prioritize procurement from BIS-certified suppliers and ensure regulatory due diligence before project commissioning.
- Investors & Financial Institutions: Assess solar manufacturers' compliance readiness before funding projects to mitigate regulatory risks.
- R&D Institutions: Focus on advanced PV technologies to meet future efficiency benchmarks beyond 2025.
- Government & Policy Makers: Ensure smooth transition support for manufacturers through financial incentives or phased implementation.
WHAT NEXT FOR INDIA?
Impact upon project sizes in India
The MNRE 2025 Order
mandates higher efficiency standards and BIS certification for solar
photovoltaic components. Projects currently under construction or planned must
assess their compliance with these new requirements. Larger projects, such as
those in solar parks and ultra-mega solar power projects, will need to ensure
that all installed components meet the updated standards to avoid delays or
additional costs.
Strategic
Considerations:
- Compliance Assessment: Project developers should conduct thorough evaluations of their current equipment and supply chains to ensure adherence to the new standards.
- Supplier Engagement: Engaging with suppliers early to confirm that all components are BIS-certified and meet the efficiency criteria is crucial
- Timeline Adjustments: Developers may need to adjust project timelines to accommodate any changes required for compliance, especially for large-scale projects.
Conclusion
The MNRE 2025 Order
represents a landmark step towards ensuring standardized, high- quality solar
infrastructure in India. While the transition entails compliance costs, the
long-term benefits include enhanced efficiency, investor confidence, and a
globally competitive domestic market. Companies that proactively align with
these standards will gain a first-mover advantage, securing a dominant market
position.
As a trusted industry name, Eninrac Consulting advises stakeholders to embrace these changes proactively, leveraging data-driven strategies for sustainable growth in India's rapidly expanding solar sector.
