Key takeaway: There is no single solar licence in India. This checklist has ten registrations, and they fall into three groups: what the law requires (a state electrical contractor licence, GST above the turnover threshold, trade licence, ESI and PF at their thresholds), what you need to win subsidy work (PM Surya Ghar vendor registration and your state or DISCOM registration), and product rules on what you install (ALMM, BIS, domestic content). For each one you get who needs it, where to apply, cost, timeline and renewal.
Last updated 14 October 2026. Rules and limits below are dated where they come from an official document. Costs and timelines marked indicative are typical practitioner ranges, not official schedules.
Running a solar business is not just about selling panels and completing installations. Before your first crew steps onto a rooftop, your business must clear a multi-layer compliance stack: company law, taxation, electrical safety, government subsidy portals, and local municipal rules. Most new entrants learn this the hard way. They win a big residential order, try to register as a subsidy vendor, and discover they are missing their electrical contractor licence.
This guide removes that guesswork. Whether you are a first-time entrepreneur reading up on how much capital is needed to start a solar business or a scaling EPC owner formalising a proprietorship into a private limited company, the checklist below covers every registration you need, in the order you should get it. For the business model and capital side, see how to start a solar EPC business.
Why Compliance Matters More Than Ever in 2026
The PM Surya Ghar Muft Bijli Yojana runs only through vendors registered on its National Portal. The MNRE operational guidelines (7 June 2024) say a consumer has to choose a registered vendor to receive central financial assistance, and that modules must meet the Domestic Content Requirement or the installation is ineligible for the subsidy. Vendor registration is one layer. Your electrical contractor licence, tax registrations and product compliance sit underneath it.
Under Regulation 31 of the CEA safety regulations, electrical installation work done without a state-licensed contractor cannot be energised or connected to the supplier's works. So a missing licence does not just risk a fine. It can stop a finished job from going live. For the rules on modules and cells, see the ALMM list explained and the MNRE guidelines for installers.
The upside: a vendor with every layer in place can say yes to subsidy-linked residential work, answer a DISCOM's document request in a day, and show a customer proof of registration.
What Is Legally Required vs What You Need to Win Subsidy Work
Not every registration here is a licence, and not every licence is needed to start. Use this table to see which is which.
| Group | What it covers | Why you need it |
|---|---|---|
| Required by law | State electrical contractor licence (CEA Reg 31); GST registration above the turnover threshold; trade or shop licence; ESI and PF at their employee thresholds; Professional Tax where your state levies it | You cannot lawfully do the work, invoice, employ or operate premises without them |
| Required for access to subsidy work | PM Surya Ghar vendor registration (state level, national or multi-state level); state or DISCOM registration where your state runs one | The scheme runs only through registered vendors. Forms commonly ask for GSTIN, PAN and an entity certificate. Udyam is not required by statute, but it is commonly asked for |
| Product compliance | ALMM-listed modules, domestic content for subsidised installations, BIS-marked consumer meters | These are rules on the equipment you install, not licences for your business |
The Master Checklist at a Glance
| # | Registration | Authority | Mandatory for |
|---|---|---|---|
| 1 | Business entity registration | MCA / State Registrar | Everyone |
| 2 | MSME / Udyam registration | MSME Ministry | Not mandatory by law; commonly asked for |
| 3 | GST registration | GSTN | Services above ₹20 lakh turnover; goods above ₹40 lakh; inter-state goods supply at any turnover |
| 4 | Electrical contractor licence | State electrical inspectorate / licensing board | Anyone doing electrical installation work |
| 5 | PM Surya Ghar vendor registration | State DISCOM or agency; national registration through the National Portal | Installers who take subsidised residential work |
| 6 | State / DISCOM registration | Respective DISCOM or state agency | Where your state runs it |
| 7 | ESI registration | ESIC | Employers with 10 or more employees |
| 8 | PF registration | EPFO | Employers with 20 or more employees |
| 9 | Professional Tax registration | State commercial tax department | Where your state levies it |
| 10 | Trade / shop-establishment licence | Municipality / Gram Panchayat | Everyone with a business address |
Product compliance (ALMM, BIS, domestic content) is covered after the ten registrations.
1, Business Entity Registration
What it is
Your legal identity. Without this, you cannot open a current bank account, sign vendor contracts, or file GST returns in a business name.
Options and their trade-offs
Costs and timelines for entity registration are indicative. Confirm them with your CA.
| Structure | Setup cost | Liability | Fundraising | Best for |
|---|---|---|---|---|
| Sole Proprietorship | ₹0 to 2,000 (bank account + trade licence) | Unlimited personal | Not possible | Solo installers, < ₹1 Cr revenue |
| Partnership Firm | ₹2,000 to 5,000 (stamp paper + registration) | Unlimited joint | Limited | 2 to 4 co-founder teams |
| LLP | ₹5,000 to 10,000 (MCA fees + DSC) | Limited | Not easy | Small EPC teams wanting limited liability |
| Private Limited Company | ₹7,000 to 15,000 (MCA fees + DSC + CA) | Limited | Full equity fundraising | Scaling EPC businesses |
Where to register
- Proprietorship / Partnership: local CA, shop-establishment licence at municipality
- LLP / Pvt Ltd: MCA21 portal (mca.gov.in), fully online
Timeline
- Proprietorship: 3 to 7 days (bank account + trade licence)
- LLP: 10 to 15 working days
- Private Limited: 10 to 20 working days
Renewal
Annual ROC compliance (MCA filings) for LLP and Pvt Ltd. Proprietorships renew their trade licence annually.
2, MSME / Udyam Registration
What it is
A free government classification that labels your business as a Micro, Small, or Medium Enterprise. It is the standard proof of MSME status for priority sector lending, government tender preferences, and protection against delayed payments from large buyers.
Who needs it
Udyam is not a solar-specific licence and it is not required by statute to install solar. Loan forms, tender documents and many vendor forms ask for it, so most installers register. Any business within the limits below can register, up to ₹500 Cr turnover as a medium enterprise. If you want a walkthrough of the exact steps, see the dedicated MSME registration walkthrough and the Udyam registration glossary entry.
Investment and turnover limits (revised from 1 April 2025)
| Category | Investment | Annual Turnover |
|---|---|---|
| Micro | Up to ₹2.5 Cr | Up to ₹10 Cr |
| Small | Up to ₹25 Cr | Up to ₹100 Cr |
| Medium | Up to ₹125 Cr | Up to ₹500 Cr |
A firm must be within both limits to fall in a category. These replaced the earlier limits (₹1 Cr and ₹5 Cr for micro, ₹10 Cr and ₹50 Cr for small, ₹50 Cr and ₹250 Cr for medium). Source: the limits table on udyamregistration.gov.in, checked 14 October 2026. See also the MSME glossary entry.
Where to apply
udyamregistration.gov.in, fully online, Aadhaar-based, no fee.
Timeline
Online and usually quick. You receive a Udyam Registration Number (URN) and a printable certificate.
Renewal
No renewal needed. The certificate does not expire. Update your details when your turnover or investment changes.
3, GST Registration
What it is
Your GST Identification Number (GSTIN) allows you to charge GST on invoices, claim input tax credits on panels, inverters, and mounting hardware, and file returns legally.
Who needs it
- Services (a solar installation contract is a supply of works and services): aggregate turnover above ₹20 lakh in a year (₹10 lakh in Manipur, Mizoram, Nagaland and Tripura)
- Goods-only suppliers: above ₹40 lakh (₹20 lakh in some states)
- Inter-state supply of goods: registration is needed at any turnover. Suppliers of services making inter-state supplies are exempt up to ₹20 lakh (Notification 10/2017, Integrated Tax)
- In practice: state vendor forms commonly ask for a GSTIN, so most installers register before they bid
Source: CBIC, "GST: An Update" (thresholds effective 1 April 2019). Check the CBIC notifications for any later change, and confirm your own position with a CA. See the GST glossary entry.
GST rates relevant to solar (2026)
| Supply | HSN/SAC | GST Rate |
|---|---|---|
| Solar PV modules (since 22 Sep 2025; 12% before) | 8541 43 00 | 5% |
| Inverters, sold standalone (confirm with your CA; inside a complete solar system the 5% goods rate applies) | 8504 | 18% |
| Mounting structures (steel) | 7308 | 18% |
| Cables | 8544 | 18% |
| Installation service, billed separately | 9954 | 18% |
| Complete rooftop contract (goods + installation), residential or commercial | 70:30 rule | 8.9% effective (5% on 70%, 18% on 30%) |
For a deeper breakdown, see the post on GST on solar installation service, the SAC code for solar installation and the HSN code glossary entry.
Where to apply
gst.gov.in, online application. Approval time varies.
Cost
No government fee. CA or accountant fee: indicative ₹1,500 to ₹3,000.
Renewal
GST registration does not expire, but you must file returns monthly or quarterly (GSTR-1, GSTR-3B) and annually (GSTR-9).
4, Electrical Contractor Licence
What it is
A state-issued licence that authorises your business to carry out electrical installation work, which includes inverter connections, AC wiring from the inverter to the consumer's board, and earthing.
The legal basis
Regulation 31 of the CEA (Measures relating to Safety and Electric Supply) Regulations, 2023 (notified 8 June 2023) says electrical installation work, including additions and alterations, must be carried out by an electrical contractor licensed by the State Government. The work must be under the direct supervision of a person holding a certificate of competency, and done by a person holding a permit issued or recognised by the State Government. Replacement of lamps, fans, fuses, switches and domestic appliances up to 250 V is excepted. Work done in contravention of the regulation cannot be energised or connected to the supplier's works. Licensing itself is state by state.
Who needs it
Any business that does electrical installation work. The AC side, from the inverter to the consumer's board, is clearly electrical work. Ask your state inspectorate how it treats the DC side. If you sub-contract all wiring to a licensed contractor, the liability gap stays with you, and most DISCOMs and subsidy forms expect your own licence or a licensed contractor on record.
Who issues it (examples)
| State | Typical authority (confirm on the state site) | State guide |
|---|---|---|
| Maharashtra | Maharashtra Electrical Licensing Board, under the Chief Electrical Inspector | Licensing in Maharashtra |
| Gujarat | Chief Electrical Inspector (CEICED), licensing board, Gandhinagar | Licensing in Gujarat |
| Rajasthan | State Electrical Inspectorate | Licensing in Rajasthan |
| Karnataka | Karnataka Electrical Inspectorate | Licensing in Karnataka |
| Tamil Nadu | Tamil Nadu Electrical Licensing Board | Licensing in Tamil Nadu |
| Uttar Pradesh | State Electrical Inspectorate | Licensing in Uttar Pradesh |
| Delhi | Electrical Inspectorate, Government of NCT of Delhi | Licensing in Delhi |
Distribution companies such as BESCOM and BSES are not licensing bodies. They are the DISCOMs you register with later. Authority names above come from secondary sources, so confirm the office and forms on your state inspectorate's own site.
How to apply
- Check the eligibility requirement. Most states ask for a certificate-of-competency or wireman qualification for the supervisor, and a qualified supervisor on your staff.
- Designate that supervisor in your organisation.
- Apply at the state electrical inspectorate or licensing board (some states have online portals).
- Submit: application form, supervisor's certificates, identity proof, business registration certificate.
- Pay the fee and await inspection or verification.
Cost
Government fees vary by state and licence class. We do not quote a single range. Check your state's fee schedule.
Timeline
Varies by state. Plan for several weeks, and start this in parallel with GST.
Renewal
Varies by state and licence class. Some licences renew annually and some run for longer terms. Note the date on your own licence.
5, PM Surya Ghar Vendor Registration
What it is
The PM Surya Ghar scheme is implemented only through vendors registered on its National Portal. The MNRE guidelines allow vendors to register at two levels: with the state DISCOMs or state agencies for state-level registration, and with the National Programme Implementation Agency (NPIA) for national, multi-state or state-level registration. Where a state has several DISCOMs, the state government names a nodal DISCOM or agency that registers vendors for all of them. Registered vendors create profiles on the portal, and consumers choose from them.
Who needs it
Any installer who wants customers to receive the PM Surya Ghar subsidy. The consumer has to choose a registered vendor to get the subsidy. Without registration, your customers cannot claim it.
For the step-by-step process, see the PM Surya Ghar vendor registration walkthrough and the guide to becoming a PM Surya Ghar empanelled vendor.
Documents required
Documents vary by state and DISCOM. As one example, the Arunachal Pradesh Department of Power notice (June 2024) asks for a signed declaration with the firm's legal status, GSTIN, PAN and PF number, proof of at least 3 trained technical staff, experience of at least 10 kWp of rooftop plants, and a vendor profile, plus the bank guarantee below. Uttar Pradesh's UPNEDA portal collects training and manpower credentials and bank guarantee details online. Read your own state's notice before you gather documents.
Where to apply
Start at pmsuryaghar.gov.in and at your state agency or nodal DISCOM, which publishes its own vendor invitation.
Cost
The notices we read set no registration fee. They ask for a performance bank guarantee. The Arunachal Pradesh notice asks for ₹2.5 lakh valid for at least five years, and UPNEDA's portal asks for a ₹2.5 lakh guarantee from UP firms. Amounts can differ by state and by registration level. Check your state's current notice before you arrange the guarantee.
Timeline
In the Arunachal Pradesh example, a qualified vendor's name is listed within a month of a successful submission and the list is updated monthly. Other states differ.
Renewal
Follow the validity in your own registration. The guarantee in the Arunachal example runs for five years.
6, State and DISCOM Registration
What it is
Registration with your state's DISCOM or designated state agency is the state layer of vendor registration described in section 5. It is how you get onto the state list and, in states that run one, onto the DISCOM's own vendor list. After registration, the DISCOM uploads vendor details to the National Portal, and the vendor logs in with PAN and mobile number to enter rates and contacts.
Who needs it
Any installer taking grid-tied or subsidised work in that state. For the full process around net metering, see the guide on applying for net metering in India and the glossary entry on DISCOMs.
Two layers, one picture
| Layer | Who registers you | Scope |
|---|---|---|
| State level | State DISCOM, nodal DISCOM or state agency | The state where you register |
| National / multi-state level | National Programme Implementation Agency (NPIA), through the National Portal | More than one state, as per MNRE procedure |
If you expand to a new state, check whether your existing registration covers it or whether that state needs its own. Each state publishes its own notice. Do not assume one registration covers all DISCOMs.
Where to apply
Look for the vendor or empanelment invitation on the state agency or DISCOM's official website. For the process after registration, see the step-by-step DISCOM approval process and net metering application timelines. Major DISCOMs include BESCOM (Karnataka), MSEDCL (Maharashtra), DGVCL, MGVCL, PGVCL and UGVCL (Gujarat), and JVVNL, JDVVNL and AVVNL (Rajasthan).
Cost and timeline
Fees and the performance bank guarantee are set by the state or DISCOM. Timelines vary. Use the state's own notice.
7, ESI Registration
What it is
Employee State Insurance, mandatory health and disability insurance for employees earning up to ₹21,000/month.
Who needs it
Employers with 10 or more employees. The Code on Social Security, 2020 is reported to have come into force from 21 November 2025, with rules still being finalised, so check the ESIC notices before you rely on a threshold or wage ceiling.
Where to apply
esic.gov.in, online employer registration.
Contribution rates
At the time of writing, confirm on the ESIC site:
- Employer: 3.25% of gross wages
- Employee: 0.75% of gross wages
Timeline
Online registration. Physical verification may follow.
Renewal
No renewal needed, monthly contributions are ongoing.
8, PF Registration
What it is
Employees' Provident Fund, mandatory retirement savings scheme.
Who needs it
Employers with 20 or more employees. Voluntary coverage is available for smaller businesses. As with ESI, check EPFO notices for changes under the Code on Social Security.
Where to apply
epfindia.gov.in, online employer registration.
Contribution rates
At the time of writing, confirm on the EPFO site:
- Employer: 12% of basic + DA (8.33% to EPS, 3.67% to EPF)
- Employee: 12% of basic + DA
Timeline
Online registration, usually within a few working days.
9, Professional Tax Registration
What it is
A state-level tax levied on professionals and employers. Not all states have it. It is applicable in states such as Maharashtra, Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Telangana and Gujarat, among others, so check your state.
Who needs it
Businesses operating from states where professional tax applies. The employer deducts PT from employee salaries and, in many states, pays PT for itself or its owners separately.
Cost
Each state sets its own slabs. The Constitution caps professional tax at ₹2,500 a year per person. Check your state's schedule.
Where to apply
Your state's commercial tax or professional tax department. Check its official website for the current portal.
10, Trade Licence / Shop & Establishment Licence
What it is
A municipal-level licence that gives legal permission to operate a business from a specific address. Required for any office, warehouse, or showroom where your municipality asks for it.
Who needs it
Every business with a physical premises, office, godown, showroom, or project site office, as per your local rules.
Where to apply
Local municipal corporation or gram panchayat. Many cities now have online portals.
Cost
Indicative: a few hundred to a few thousand rupees depending on municipality and floor area. Check your municipal schedule.
Timeline
Varies by municipality, from a few days to a few weeks.
Renewal
Annual in most municipalities. Check yours.
Product Compliance: ALMM, BIS and Domestic Content
These are rules on what you install, not licences for your business. A fully registered vendor can still lose a subsidy claim on a non-compliant product.
- Domestic Content Requirement (DCR). Under the PM Surya Ghar guidelines, modules in a subsidised installation must be domestically manufactured from domestically manufactured cells. Use of non-DCR modules makes the installation ineligible for CFA. See the DCR glossary entry.
- ALMM. MNRE's Approved List of Models and Manufacturers has a List-I for modules and a List-II for cells, each with its own dates. Do not restate dates from memory. Read the ALMM list explained, the ALMM List-II exemption post and the ALMM glossary entry, then check MNRE's circulars.
- BIS. The CEA metering regulations require every consumer meter to bear the BIS mark. See the BIS glossary entry and how a bidirectional meter works.
Step-by-Step: Sequence for a New Solar Business
Pros and Cons: Getting All Licences vs. Operating Informally
- Can take PM Surya Ghar work, because the scheme runs only through registered vendors
- Completed installations can be energised and connected
- Clean GST invoices and input tax credit
- Banks and tender buyers can verify you through Udyam and GST records
- Easier to build a structured sales team with clean payroll
- Customers cannot choose you for PM Surya Ghar subsidy work
- Electrical work without a licensed contractor cannot be energised or connected
- GST mismatches invite notices
- Safety liability stays with you if wiring fails
- Harder to raise formal invoices or qualify for loans
Renewal Calendar: Never Miss a Deadline
One of the biggest operational risks is not getting the licence, it is letting it lapse. Here is a summary renewal schedule. Where renewal depends on the state, note the date on your own certificate.
| Registration | Renewal Frequency | When |
|---|---|---|
| Trade Licence | Annual in most municipalities | Per your licence date |
| Electrical Contractor Licence | Varies by state and licence class | Per your licence date |
| PM Surya Ghar vendor registration | Per your registration; the guarantee in the Arunachal example runs five years | Per your registration date |
| State / DISCOM registration | Per the state or DISCOM notice | Varies |
| GST returns | Monthly / Quarterly | 11th and 20th of each month for GSTR-1 and GSTR-3B (monthly filers) |
| ESI contributions | Monthly | 15th of following month |
| PF contributions | Monthly | 15th of following month |
| Professional Tax | Per state schedule | Varies |
How Quickest Solar CRM Helps You Stay Organised During Growth
When your business is small, keeping track of compliance dates is manageable. When you are running a sales funnel with 50+ active leads, managing a field team, and chasing DISCOM approvals on 12 projects simultaneously, compliance dates get lost.
- Store all compliance documents (licence PDFs, registration certificates) in customer and company records
- Set reminders for licence renewal dates so nothing lapses during a busy project period
- Attach your GSTIN and PM Surya Ghar vendor registration number to proposals automatically, no manual copy-paste errors
- Track which projects have DISCOM applications pending vs. approved on the pipeline board
- Know when it is the right time to invest in a CRM, and be ready for it
Frequently Asked Questions
Is there a single solar business licence in India?
No. You need general registrations (entity, GST above the threshold, trade licence, and Udyam in practice), a state electrical contractor licence for installation work, and vendor registration to take PM Surya Ghar subsidy work. Product rules such as ALMM and BIS apply on top.
Do I need an electrical contractor licence to install solar?
Yes for electrical installation work. Regulation 31 of the CEA (Measures relating to Safety and Electric Supply) Regulations, 2023 requires it to be done by an electrical contractor licensed by the State Government, under a supervisor holding a certificate of competency. The AC side, from the inverter to the consumer's board, is the clear case. Work done in contravention cannot be energised or connected.
Is registering as a PM Surya Ghar vendor free?
The state notices we read set no registration fee but ask for a performance bank guarantee: ₹2.5 lakh valid for at least five years in the Arunachal Pradesh notice, and ₹2.5 lakh on UPNEDA's portal for UP firms. Amounts can differ by state, so check your state's current notice.
Do I need separate registration for each DISCOM or state?
Vendor registration is state by state, with a national or multi-state option through the National Programme Implementation Agency. Where a state has several DISCOMs, a nodal DISCOM or agency registers vendors for all of them. In a new state, check that state's notice rather than assuming your registration carries over.
How much does a solar vendor licence cost?
There is no single figure. Government fees vary by state and licence class, and entity set-up and consultant fees come on top. For subsidy work the larger cost is usually the performance bank guarantee, ₹2.5 lakh in the state notices we read. Use your state's fee schedule and notice.
Do I need GST registration if my turnover is under ₹20 lakh?
For services, not by law below ₹20 lakh (₹10 lakh in Manipur, Mizoram, Nagaland and Tripura). Goods-only suppliers have a ₹40 lakh limit, and inter-state supply of goods needs registration at any turnover. In practice vendor forms commonly ask for a GSTIN, so most installers register early. Confirm with a CA.
Is Udyam registration mandatory for a solar business?
Not by statute, but loan forms, tenders and many vendor forms ask for it. Limits were revised on 1 April 2025: micro up to ₹2.5 crore investment and ₹10 crore turnover, small up to ₹25 crore and ₹100 crore, medium up to ₹125 crore and ₹500 crore.
When must I register for ESI and PF?
ESI applies to employers with 10 or more employees and PF to employers with 20 or more. The Code on Social Security, 2020 is reported to be in force from 21 November 2025 with rules still being finalised, so check ESIC and EPFO notices.
What happens if my electrical contractor licence expires mid-project?
Work done during a lapsed period may be treated as unlicensed, and under Regulation 31 such work cannot be energised or connected. A completion certificate can be refused, which blocks the net metering application. Renew well before expiry.
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