Financial Services for Solar & Renewable Energy Companies in India

Government subsidy accounting and MNRE scheme compliance

MNRE subsidies, PM-KUSUM scheme incentives, and state discom-linked incentives require precise accounting treatment for both recognition timing and GST implications. Misclassification creates tax exposure and potential requirement to repay subsidies with interest.

Accurate subsidy accounting and MNRE compliance management

GST input tax credit on solar panels and equipment

The applicable GST rate on solar panels, inverters, batteries, and mounting structures has been subject to multiple changes and clarifications. Incorrect ITC claims or missed refund opportunities represent a material financial cost to solar businesses.

Solar-specific GST management and ITC maximisation

Project-wise cost tracking across multiple concurrent installations

Solar installation companies managing multiple projects simultaneously residential, commercial, and utility-scale — require project-wise cost accounting to accurately assess profitability, manage billing milestones, and report to investors or lenders.

Project-wise cost tracking and milestone billing management

Imported equipment customs duty, BCD, and ALMM obligations

The Approved List of Models and Manufacturers (ALMM) requirements and Basic Customs Duty on imported solar modules create complex import cost structures that must be accurately accounted for in project economics and tax planning.

Import duty optimisation and ALMM compliance advisory

Revenue recognition for Power Purchase Agreements (PPAs)

Long-term PPAs with discoms and commercial clients involve complex revenue recognition questions particularly for projects with performance guarantees, milestone payments, and variable tariff structures.

PPA-specific revenue recognition and reporting

International investment and cross-border fund flows

Many solar developers and IPPs attract international institutional capital. Foreign Direct Investment reporting under FEMA, ECB compliance for overseas borrowings, and repatriation planning require specialist cross-border financial advisory.

FDI and ECB compliance for renewable energy developers/strong>

Subsidy & Grant Accounting

Accurate accounting for MNRE subsidies, state government incentives, and capital grants. Recognition timing and GST treatment managed in accordance with applicable standards.

Solar GST Management

GST classification management for solar equipment, ITC optimisation, refund claims on zero-rated supplies, and reconciliation of GSTR-2A discrepancies with EPC contractors.

Project Cost Accounting

Project-wise cost centres configured in your accounting system. Milestone billing, cost-to-complete analysis, and project profitability reporting for all concurrent installations.

FDI & ECB Compliance

FEMA-compliant structuring for international equity investment. ECB documentation, Form ECB-2 reporting, and hedging compliance for foreign currency borrowings.