India’s energy sector is transforming rapidly, and commercial rooftop solar has emerged as a core
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As India accelerates its path toward clean and sustainable green energy, the role of Solar Renewable Energy Certificates (RECs) is becoming increasingly central for industries, businesses, and large commercial buyers. RECs not only fulfil compliance requirements but also deliver value, credibility, and business advantages.
A Solar Renewable Energy Certificate (REC) is a market-based instrument that represents proof that 1 megawatt-hour (MWh) of electricity has been generated from solar energy and fed into the power grid. Businesses and industries in India can buy or trade these certificates to meet Renewable Purchase Obligation (RPO) compliance and demonstrate their commitment to clean energy.
In short: Solar RECs = Proof of using clean solar energy without actually installing panels.
Integrating this data strengthens the understanding of how businesses can earn RECs or renewable energy credits:
In practice, the process for industries has the following steps (updated with data where possible):
Using the data helps understand the urgency and benefits:
To leverage RECs optimally, companies should:
In India, Renewable Energy Certificates (RECs) are issued by the National Load Despatch Centre (NLDC), which functions as the central agency under the Central Electricity Regulatory Commission (CERC). Renewable energy generators such as solar, wind, or biomass plants can earn one REC for every 1 megawatt-hour (MWh) of electricity they feed into the grid, provided they are not selling it under a preferential tariff. These certificates are then traded on approved power exchanges like the Indian Energy Exchange (IEX) and Power Exchange India Ltd. (PXIL), enabling businesses and industries to purchase RECs and meet their Renewable Purchase Obligation (RPO) compliance.
India’s REC system in 2025 presents both a compliance necessity and a strategic opportunity. With robust policy push, increasing renewable generation, rising REC trading volumes, and growing corporate demand, businesses that move early can:
Jatin Singh is a content developer at Sun Photonics Pvt. Ltd., specializing in creating impactful content for solar energy solutions. With a background in tech and health, he has previously worked in digital marketing and pharma. Passionate about sustainability, and currently exploring all things about solar!
Approval by an Expert:
“This content is reviewed and approved by Dr. Sujata Bhaker, who holds a Doctorate in Renewable Energy and brings over 10 years of industry expertise.”
A 1 MW rooftop solar system in India typically costs around ₹5 crore. With subsidies and tax benefits, businesses can recover costs within 3–5 years.
Industries in India can expect 20–35% ROI from rooftop solar, depending on system size, financing model, and state policies.
CAPEX is better for businesses seeking ownership and faster ROI, while OPEX/RESCO suits those preferring zero upfront investment.
Yes, rooftop solar is ideal for large energy consumers such as factories and warehouses, where it significantly reduces operational costs.
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