<\/span><\/h3>\n\n\n\nQ1. Is 100% FDI allowed in renewable energy projects in India?<\/strong>
Yes. 100% FDI is permitted under the automatic route in the renewable energy generation sector in India. No prior government approval is required. However, manufacturing activities linked to the project may have separate PLI eligibility conditions that must be independently assessed.<\/p>\n\n\n\nQ2. What is the PLI scheme for solar energy in India and who is eligible?<\/strong>
The PLI scheme for High-Efficiency Solar PV Modules offers production-linked incentives to manufacturers achieving specified efficiency thresholds. Foreign-owned Indian companies are eligible, provided they meet committed capacity and domestic value addition requirements as notified by MNRE and DPIIT.<\/p>\n\n\n\nQ3. Do foreign investors need RBI approval for renewable energy investments in India?<\/strong>
Under the automatic FDI route, no prior RBI approval is needed. However, the investment must be reported to the RBI within specified timelines through the Advance Remittance Form (ARF) and FC-GPR filings, and all transactions must comply with FEMA regulations.<\/p>\n\n\n\nQ4. What taxes apply to renewable energy companies set up in India?<\/strong>
Renewable energy companies are subject to corporate income tax at 22% (base rate for domestic companies under the new tax regime) or 15% for new manufacturing companies. Section 80-IA of the Income Tax Act provides a 10-year profit-linked deduction for power generation undertakings, subject to conditions.<\/p>\n\n\n\nQ5. Can a foreign company set up a renewable energy project in India without a local partner?<\/strong>
Yes. A foreign investor can incorporate a wholly owned subsidiary as a Private Limited Company in India and execute renewable energy projects without any mandatory local partnership. A joint venture is commercially advisable in some states for land access and regulatory navigation but is not legally required.<\/p>\n","protected":false},"excerpt":{"rendered":"India’s renewable energy investment landscape has transformed dramatically, making it one of the most compelling clean energy markets in the world. If you are a foreign company, NRI, global startup, or overseas investor evaluating India’s green energy sector in 2026, understanding the FDI framework, PLI scheme eligibility, regulatory approvals, and company setup requirements is not […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[812],"tags":[3581,3585,3583,3575,3578,3571,3582,3572,3586,3573,3584,3577,3587,3576,3580,3588,3570,3574,3579],"class_list":["post-9263","post","type-post","status-publish","format-standard","hentry","category-blog","tag-500-gw-india-target-2026","tag-battery-storage-investment-india","tag-clean-energy-fdi-automatic-route","tag-company-formation-india-renewable-sector","tag-company-setup-in-india-for-foreign-nationals","tag-fdi-in-renewable-energy-india-2026","tag-fema-compliance-renewable-energy","tag-foreign-investor-renewable-energy-india","tag-green-energy-subsidy-india","tag-green-hydrogen-investment-india","tag-india-solar-manufacturing-pli","tag-mnre-approvals-foreign-company","tag-nri-renewable-energy-investment","tag-pli-scheme-solar-india","tag-private-limited-company-renewable-energy-india","tag-rbi-approval-renewable-project-india","tag-renewable-energy-investment-india","tag-solar-project-approval-india","tag-wind-energy-fdi-india"],"_links":{"self":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/comments?post=9263"}],"version-history":[{"count":2,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9263\/revisions"}],"predecessor-version":[{"id":9266,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9263\/revisions\/9266"}],"wp:attachment":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/media?parent=9263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/categories?post=9263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/tags?post=9263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"Renewable](\"https:\/\/startupsolicitors.com\/blog\/wp-content\/uploads\/2026\/07\/ss-825x1024.png\")
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