TeamLease Regtech Highlights 2,735 Compliance Tasks For A Single Solar Plant In India

TeamLease Regtech, one of India’s leading regulatory technology (Regtech) companies, has released a comprehensive report titled “Decoding Compliance Management for the Renewable Energy Sector.” The report takes a deep dive into the regulatory landscape for renewable energy businesses in India, shedding light on the challenges they face, the complexity of legal requirements, and the importance of building a compliance-first approach as the sector scales. India has emerged as a global leader in solar energy.

As of April 2025, the country’s installed solar power capacity reached 107.94 GW, making it the third-largest producer of solar energy worldwide. In terms of generation, India produced 75.57 billion units (BU) of solar power between April 2023 and February 2024. The Indian solar market was valued at USD 10.4 billion in 2023 and is projected to grow to USD 24.9 billion by 2030, at a compound annual growth rate (CAGR) of 13.4%. The report presents an in-depth analysis of compliance obligations for companies operating in this sector. It cites the example of a standalone solar energy plant located in Maharashtra, which supplies electricity through the grid and has its corporate office in Haryana.

Such a business must comply with 799 unique regulatory requirements—646 from central laws and 153 from state and municipal laws. These obligations translate into 2,735 individual compliance tasks to be completed over a year. Among various regulatory categories, labour-related compliance accounts for the largest number, with 244 distinct obligations. These expand to 1,071 tasks annually when their required frequency is taken into account. These compliances include key laws such as the Employees’ Provident Fund Act, Maternity Benefit Act, Payment of Wages Act, and the Sexual Harassment of Women at Workplace Act. For example, the Factories Act and Maharashtra Factories Rules mandate that pressure vessels must be tested every four years—a requirement that is sometimes overlooked but carries legal risk.

Notably, of the 83 regulatory provisions that could lead to imprisonment, 77.1% fall under labour laws, making it the most criminalised category of compliance. Other significant categories include secretarial compliance with 238 obligations, finance and taxation with 84, environment, health and safety with 58, and industry-specific regulations with 106. Additional requirements include 38 commercial and 31 general compliance tasks. These obligations involve various activities such as maintaining statutory registers, making periodic payments, testing and certifying equipment, displaying mandatory notices, managing inspections and audits, and submitting regular reports to different authorities.

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 underscores that as renewable energy companies expand their operations into new geographies, compliance complexity increases significantly. This is further aggravated by the absence of a centralised compliance tracking system, differing net metering policies across states, and cumbersome approval processes that require close to 51 different licenses and permits. To help companies navigate these regulatory challenges more efficiently, the report recommends fostering greater collaboration between industry players and regulatory authorities, adopting digital and dynamic compliance checklists, keeping track of evolving legal and regulatory frameworks, and conducting thorough due diligence and risk-based audits specific to the sector.

Additionally, it stresses the need to build a strong compliance culture driven by leadership commitment and supported by digital tools that enhance visibility, simplify compliance processes, and reduce operational risks. This report by TeamLease Regtech highlights the urgent need for renewable energy companies in India to adopt smarter, technology-driven compliance strategies as they contribute to the country’s energy transition.