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.

GroupWhat it coversWhy you need it
Required by lawState 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 itYou cannot lawfully do the work, invoice, employ or operate premises without them
Required for access to subsidy workPM Surya Ghar vendor registration (state level, national or multi-state level); state or DISCOM registration where your state runs oneThe 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 complianceALMM-listed modules, domestic content for subsidised installations, BIS-marked consumer metersThese are rules on the equipment you install, not licences for your business
What does it all cost? There is no single total. Government fees differ by state and licence class, and entity set-up and consultant fees are on top. For subsidy work the larger cheque is usually the performance bank guarantee. State vendor notices we read, from Uttar Pradesh and Arunachal Pradesh, ask for a ₹2.5 lakh guarantee valid for at least five years. Check your own state's notice before you budget.

The Master Checklist at a Glance

10
Registrations in the checklist
3
Groups: law, subsidy access, product
₹2.5 lakh
Performance bank guarantee in state vendor notices we read (UP, Arunachal)
#RegistrationAuthorityMandatory for
1Business entity registrationMCA / State RegistrarEveryone
2MSME / Udyam registrationMSME MinistryNot mandatory by law; commonly asked for
3GST registrationGSTNServices above ₹20 lakh turnover; goods above ₹40 lakh; inter-state goods supply at any turnover
4Electrical contractor licenceState electrical inspectorate / licensing boardAnyone doing electrical installation work
5PM Surya Ghar vendor registrationState DISCOM or agency; national registration through the National PortalInstallers who take subsidised residential work
6State / DISCOM registrationRespective DISCOM or state agencyWhere your state runs it
7ESI registrationESICEmployers with 10 or more employees
8PF registrationEPFOEmployers with 20 or more employees
9Professional Tax registrationState commercial tax departmentWhere your state levies it
10Trade / shop-establishment licenceMunicipality / Gram PanchayatEveryone 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.

StructureSetup costLiabilityFundraisingBest for
Sole Proprietorship₹0 to 2,000 (bank account + trade licence)Unlimited personalNot possibleSolo installers, < ₹1 Cr revenue
Partnership Firm₹2,000 to 5,000 (stamp paper + registration)Unlimited jointLimited2 to 4 co-founder teams
LLP₹5,000 to 10,000 (MCA fees + DSC)LimitedNot easySmall EPC teams wanting limited liability
Private Limited Company₹7,000 to 15,000 (MCA fees + DSC + CA)LimitedFull equity fundraisingScaling 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.

Pro tip: State vendor registration forms ask for the firm's legal status. The Arunachal Pradesh notice, for example, lists proprietary, partnership, LLP and company options, so a proprietorship is not barred there. Check your own state's notice, and read the PM Surya Ghar vendor registration guide for the process.

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)

CategoryInvestmentAnnual Turnover
MicroUp to ₹2.5 CrUp to ₹10 Cr
SmallUp to ₹25 CrUp to ₹100 Cr
MediumUp to ₹125 CrUp 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.

Why it matters for solar: Udyam is the document banks and tender buyers use to confirm MSME status. If you plan to borrow, read our guide to solar business loans.

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)

SupplyHSN/SACGST Rate
Solar PV modules (since 22 Sep 2025; 12% before)8541 43 005%
Inverters, sold standalone (confirm with your CA; inside a complete solar system the 5% goods rate applies)850418%
Mounting structures (steel)730818%
Cables854418%
Installation service, billed separately995418%
Complete rooftop contract (goods + installation), residential or commercial70:30 rule8.9% 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).

Common mistake: Many small installers register for GST but then charge GST on invoices without filing returns. The GSTN system flags mismatches automatically. Late filing attracts a per-day late fee up to a cap, and unpaid tax attracts interest at 18% a year under Section 50 of the CGST Act.

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.

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)

StateTypical authority (confirm on the state site)State guide
MaharashtraMaharashtra Electrical Licensing Board, under the Chief Electrical InspectorLicensing in Maharashtra
GujaratChief Electrical Inspector (CEICED), licensing board, GandhinagarLicensing in Gujarat
RajasthanState Electrical InspectorateLicensing in Rajasthan
KarnatakaKarnataka Electrical InspectorateLicensing in Karnataka
Tamil NaduTamil Nadu Electrical Licensing BoardLicensing in Tamil Nadu
Uttar PradeshState Electrical InspectorateLicensing in Uttar Pradesh
DelhiElectrical Inspectorate, Government of NCT of DelhiLicensing 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

  1. 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.
  2. Designate that supervisor in your organisation.
  3. Apply at the state electrical inspectorate or licensing board (some states have online portals).
  4. Submit: application form, supervisor's certificates, identity proof, business registration certificate.
  5. 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

LayerWho registers youScope
State levelState DISCOM, nodal DISCOM or state agencyThe state where you register
National / multi-state levelNational Programme Implementation Agency (NPIA), through the National PortalMore 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

1
Register the business entity, choose structure, incorporate via MCA (indicative 1 to 3 weeks). Open a current bank account immediately after.
2
Apply for Udyam registration, done online at udyamregistration.gov.in. Do this the same day you get the incorporation certificate.
3
Apply for GST registration, you need PAN, Aadhaar, incorporation certificate, and a bank statement. Apply within the first week of operations.
4
Apply for Electrical Contractor Licence, identify your qualified supervisor, gather their certificates, and file at the state inspectorate. Start this in parallel with GST as it takes the longest.
5
Get Trade Licence from municipality, apply as soon as you have a business address. Needed as proof for several subsequent registrations.
6
Apply for PM Surya Ghar vendor registration, once you have GSTIN, PAN, your electrical contractor licence, and whatever manpower and experience proof your state notice asks for. Arrange the bank guarantee your state requires.
7
Check state and DISCOM registration, for each state you work in. Keep your electrical licence, registration confirmation and GSTIN ready.
8
Register for ESI and PF when your team reaches the respective thresholds. Register for Professional Tax if applicable in your state.

Pros and Cons: Getting All Licences vs. Operating Informally

Fully Compliant Business
  • 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
Informal / Partial Compliance
  • 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.

RegistrationRenewal FrequencyWhen
Trade LicenceAnnual in most municipalitiesPer your licence date
Electrical Contractor LicenceVaries by state and licence classPer your licence date
PM Surya Ghar vendor registrationPer your registration; the guarantee in the Arunachal example runs five yearsPer your registration date
State / DISCOM registrationPer the state or DISCOM noticeVaries
GST returnsMonthly / Quarterly11th and 20th of each month for GSTR-1 and GSTR-3B (monthly filers)
ESI contributionsMonthly15th of following month
PF contributionsMonthly15th of following month
Professional TaxPer state scheduleVaries
Tip: Log all your licence expiry dates in your CRM or a shared team calendar with 60-day, 30-day, and 7-day reminders. A lapsed electrical licence leaves you without the licence that Regulation 31 requires for new installation work.

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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