MNRE has issued penalties for flouting domestic solar requirement norms.

The Ministry of New and Renewable Energy (MNRE) has issued penalties for flouting domestic solar requirement norms. 


The Ministry of New and Renewable Energy (MNRE) has issued penalties for flouting domestic solar requirement norms. These penalties are applicable to solar PV power projects under MNRE's Schemes/Programmes.

The penalties are as follows:

  • For the first violation, the developer will be liable to pay a penalty of 10% of the value of the solar PV power project.
  • For the second violation, the developer will be liable to pay a penalty of 20% of the value of the solar PV power project.
  • For the third or subsequent violation, the developer will be liable to pay a penalty of 30% of the value of the solar PV power project.

In addition to the monetary penalty, the MNRE may also take the following actions against the developer:

  • Blacklisting of the developer for a period of 10 years.
  • Forfeiting of bank guarantees.
  • Initiation of disciplinary proceedings against the officers of the central public sector undertakings or state governments involved in the violation.

The MNRE has also issued a memorandum titled "Penalties for violation of norms of Domestic Content Requirement (DCR) under Solar PV power projects under MNRE's Schemes / Programmes". This memorandum provides the following guidelines for imposing penalties on developers who violate the DCR norms:

  • The penalty for the first violation shall be 10% of the value of the solar PV power project.
  • The penalty for the second violation shall be 20% of the value of the solar PV power project.
  • The penalty for the third or subsequent violation shall be 30% of the value of the solar PV power project.

The MNRE has also clarified that the above penalties are not mutually exclusive, and that both penalties may be imposed on a developer who violates both the DCR norms and the domestic solar requirement norms.

The MNRE has taken these steps to ensure that the domestic solar industry is protected and to promote the use of domestically manufactured solar components in solar PV power projects.

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