November 30, 2015

One of the key advantages available to Solar Power Projects is Exemption from paying Excise Duty and Customs Duty on Equipment used in setting up a solar power plant. This was available only to large Utility Scale power plants till now. However, according to the Office Memorandum issued on 28th November, 2014, the benefit of Excise Exemption is available to rooftop and off grid solar projects as well. This helps in saving the Excise Duty of 12.5% on most Solar Equipment, thus, reducing the cost of installation.

However, there are 2 conditions which should are imposed :

  • Rooftop Solar Projects are eligible only to get only Excise Exemption and not Customs
  • Excise Exemption can be taken for a minimum capacity of 100 kW on a single or bundled project


  • Online Registration(7 days)

  • You need to make an account for the project on MNRE Portal using a unique email ID not used before to get any exemption certificates. Therein, the following details need to be filled:

    1. Name of Solar Project CEO: [Please nominate the person who shall be readily available for signing the material dispatch documents as this activity generally trickles to last minutes and is a recurring activity]
    2. Developer Name: [Full Name of the firm]
    3. Address: [Exact address of the location where solar plant is to be installed]
    4. Mobile No.: [of the CEO of the Solar project nominated above]
    5. Email ID: [of the CEO of the Solar project nominated above]

  • State Nodal Agency Approval (3 – 10 days)

  • After submitting the BoM online, 3 files need to be prepared with the following documents:

    1. Bill of Materials (once it is approved by MNRE) after signing by the CEO and certified by Chartered Engineer
    2. Cover Letter
    3. Proof of Possession of Roof/Building for Solar Project
    4. MoA/AoA of the Project Owner Company
    5. Self Certified Affidavit confirming that the certificates would be used only for the project for which they are being taken
    6. CA Certificate for Project Cost
    7. Power Evacuation Permission (if applicable)
    8. Single Line Diagram of the Plant
    9. Layout of the Plant
    10. Detailed Project Report (DPR)

  • MNRE Approval & Exemption Certificates (7 – 15 days)

  • On submitting these file to MNRE, MNRE checks and approves the documents. MNRE may ask for technical clarifications, particularly for cable and structure quantities. Once the approval is given, you can log into the MNRE portal again and start printing the Excise Exemption Certificates from the MNRE website by giving the details of the vendor and its excise jurisdiction where the certificate would be submitted.