Renewable energy firms face over 2,700 compliance requirements: TeamLease RegTech Report

By A Representative

India’s renewable energy sector, despite its rapid growth and strong policy backing, is grappling with an overwhelming number of regulatory requirements. According to a new report by TeamLease RegTech, titled ‘Decoding Compliance Management for the Renewable Energy Sector’, a single solar power company operating across Maharashtra and Haryana could face as many as 2,735 compliance obligations annually.

The report, released by TeamLease RegTech — a leading regulatory technology solutions provider — delves into the complex compliance landscape that governs renewable energy businesses in India. It highlights the burden of legal and regulatory adherence at central, state, and municipal levels, across seven categories of law.

For instance, a solar energy plant based in Maharashtra with its corporate office in Haryana is required to meet 799 unique regulatory obligations — 646 at the central level and 153 from state and municipal sources — which multiply to 2,735 when accounting for frequency and scope.

Labour laws dominate the compliance load, with 244 distinct obligations ballooning to 1,071 instances annually, covering laws such as the Employees’ Provident Fund Act, Maternity Benefit Act, and the Sexual Harassment of Women at Workplace Act. The labour category alone accounts for over 77% of the compliance provisions that carry imprisonment clauses, making it the most criminalised regulatory segment.

“The renewable energy sector is thriving, but with growth comes complexity,” said Rishi Agrawal, Co-Founder and CEO of TeamLease RegTech. “Managing over 2,700 compliance instances across geographies, legislations, and categories requires robust systems, not paper-based processes. This is where technology, awareness, and proactive compliance strategies come into play.”

Agrawal warned that scaling operations from a single state to multiple jurisdictions could cause regulatory obligations to rise exponentially. Moreover, over 9,300 annual regulatory changes further complicate the scenario for firms that rely on traditional compliance methods.

Key pain points identified in the report include:

- Lack of centralised regulatory visibility

- Inconsistent net metering policies across states

- Lengthy approval processes, often requiring up to 51 different licenses and permits

To tackle these challenges, TeamLease RegTech recommends:

- Digital compliance checklists

- Proactive tracking of regulatory changes

- Collaboration with industry and government stakeholders

- Risk-based audits and sector-specific due diligence

- Building a strong culture of compliance led by leadership

The report argues that digital transformation in compliance is not optional but essential, especially in a sector so critical to India’s energy transition goals.

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