Solar Energy — Policy Changes

Entry	Year	Description	Impact
Electricity (Amendment) Bill, 2022 (Proposed)	2022	While not yet enacted, this proposed amendment to the Electricity Act, 2003, seeks to further liberalize the power sector, introduce multiple distribution licensees in the same area, and strengthen the regulatory framework. It also aims to ensure compliance with Renewable Purchase Obligations (RPOs) and facilitate the integration of renewable energy into the grid.	If enacted, it could significantly boost competition, improve efficiency in power distribution, and create a more conducive environment for renewable energy integration, including solar power. It would strengthen the enforcement of RPOs, thereby increasing demand for solar energy and accelerating its deployment across states.
National Tariff Policy, 2016 (Amendment to Electricity Act, 2003)	2016	This policy amendment mandated Renewable Purchase Obligations (RPOs) for all distribution licensees, open access consumers, and captive power producers. It also introduced a Renewable Generation Obligation (RGO) for new coal/lignite-based thermal power plants to establish or procure renewable energy capacity.	The 2016 Tariff Policy provided a strong regulatory push for renewable energy, including solar. By making RPOs mandatory and introducing RGOs, it created a sustained demand for solar power, incentivizing developers and states to invest more in solar projects. This policy was instrumental in the rapid scale-up of solar capacity post-2016.

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