Introduction: Renewable Energy

What comes to your mind when you think of renewable energy? The energy comes from natural sources that won’t run out for generations such as the sun or wind, right? Well, there is a bigger picture to this. It’s true that, unlike the sources of nonrenewable energy including petroleum or coal, there are plenty of sources present for the production of renewable energy. But what about the business opportunities it presents to the people? Considering the country’s rapid transition to clean energy, setting up a renewable energy manufacturing business is quite lucrative and can give high returns on investment. Alongside this, the fact that it does not lead to the emission of greenhouse gasses also becomes significant.

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Renewable Energy Manufacturing Business in India

You’d be surprised to know that as per the “Investing for Impact: Renewable Energy & Cleantech” report, India has the potential to generate a whopping $212 billion in revenue via investments in renewable energy manufacturing business and cleantech-focused ventures by the year 2030. Not just this, it can also lead to the creation of 34 lakh job opportunities for the people of the country. All these are indicating one thing and that is India is emerging as a dominant player in the renewable energy sector in Asia, and can witness massive investments from all over the world. Besides this, it can also help India achieve its targets of reaching Net Zero emissions by 2070.

Advantages of Renewable Energy Manufacturing Business 

• High Demand

With the growth of industries in the country comes the requirement for energy at a massive scale, which many times doesn’t get fulfilled, hampering India’s economic growth. At present, over 80% of India’s energy needs are met with non-renewable resources, which not only are getting exhausted day by day but also seriously harm the environment. Here, the production of renewable energy presents a viable solution to this problem and can fill the existing supply gaps.

• Increasing Investment

High prices of oil in the international market and the need for sustainable development have pushed India to set a target of building 500 GW of renewable energy capacity by 2030. And for this, it should add at least 25 GW of renewable energy capacity every year for a continuous period of eight years. Considering this, India has been witnessing massive investments in the clean energy industry and is expecting a planned investment of over ₹2 lakh crore in 2023. 

• Government Support

To promote the adoption of renewable energy among the people and bring more innovation in the sector, the Indian government is taking multiple initiatives from time to time. It launched the Mission Innovation CleanTech Exchange intending to boost the participation of people and investments in R&D and campaigns to make clean energy affordable, attractive, and accessible to everyone. Under the Union Budget, it also kept aside Rs 19,500 crore for a PLI scheme to promote the manufacturing of high-efficiency solar panels, hence boosting clean energy. 

Types of Renewable Sources of Energy in India

• Solar Energy

Being a tropical country, India gets sunlight throughout the year, making it the most abundant and freely available natural resource for the production of clean energy. Solar photovoltaic (PV) panels are widely used by countries all over the world to capture sunlight and convert it into electrical energy. Out of the total target of 500 renewable energy capacity to be installed by 2030, 60% is supposed to come from solar energy.

• Wind Energy

Wind energy has the potential to be a game changer when it comes to clean energy. This becomes truer when India comes into the picture and the reason is its vast coastline of 7600 Km surrounded by water, which can play a great role in harnessing offshore wind energy. With 42 GW of wind generation capacity, India currently stands in the fourth position in the world.  

• Hydro Energy

With India blessed with many massive river systems, the significance of its hydropower generation potential can’t be ignored at any cost. The current installed capacity of hydropower in the country stands at around 45,700 MW and is expected to grow up to 7 GW by 2070 as per the targets of the government. 

• Biomass Energy

Biomass is made up of organic materials and as per the reports of the Ministry of New and Renewable Energy, the current availability of biomass in India is estimated at 750 million metric tonnes per year. This means a great opportunity for the country to set up biogas plants, biomass gasifiers, and other technologies to harness the huge potential of biomass energy.

• Geothermal energy

Geothermal energy is thermal energy, which is generated through the natural hot springs using heat pumps and its significance can be acknowledged by the fact that to date, around 350 geothermal energy locations have been discovered in India by the Geological Survey of India. 

• Tidal energy

Tidal energy is a form of power produced by the natural rise and fall of tides and currents and due to the long coastline, India possesses a good potential for producing it, which is estimated to be around 12.4 GW at present. Tidal stream turbines and tidal barrage systems are widely used to harness tidal energy.

Acts and Regulations for Renewable Energy Business

• Electricity Act, 2003
• National Tariff Policy (Amendment), 2016
• Companies Act, 2013
• Foreign Exchange Management Act, 1999
• Environment Protection Act, 1986
• Trademark Act, 1999
• Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 

Documents and Compliance Required to Register Renewable Energy Manufacturing Business

There is a wide range of activities that come under the renewable energy manufacturing business in India and as per their accordance, the requirement of documents and compliances vary. Below, we have mentioned a few key ones: 

• Company Incorporation
• Articles of Association
• Memorandum of Association
• GST Registration
• ISO Certification: ISO 9000-2015
• Trademark Registration
• MSME Registration
• Shop and Establishment license
• Pollution NOC
• Permanent Account Number (PAN)
• Tax Deduction and Collection Account Number (TAN)
• Bank Account details
• Loan Documents
• CEIG (Chief Electrical Inspector to Govt.) Approval

Conclusion:

What is better than establishing a business with high return on investment alongside contributing to a better environment? Well, this is the reason today we are witnessing people taking interest in Renewable Energy Manufacturing business in India. High demand, support from the government, robust investment, all these make it a lucrative business idea. If you still have any queries regarding the compliances required to open it, feel free to come in contact with the experts of Corpseed ITES, which is widely known as India’s leading environmental advisory firm.