Solar Plant Due Diligence Checklist for Operating Assets

Last updated 18 October 2026 · By Pradeep Kumar, India Solar

In short: Before buying an operating Indian solar plant, check eight areas: generation against meter data, the power buyer's payment record, the PPA and its change-of-ownership terms, land title and lease, plant condition, approvals, the company's accounts and tax, and the deal's pricing and protections.

Generation

Monthly joint meter readings (JMRs) since commercial operation.
Inverter and monitoring data, cross-checked against utility meters.
Actual capacity utilisation against the expected P50 and P90 figures.
Degradation trend, outage log and any curtailment.
Deviation charges paid, for plants that schedule output.

Payments

Every invoice against its payment date; average days to payment.
Unpaid invoices and their age.
Letter of credit, escrow or payment security fund, and whether it has been used.
Late-payment surcharge claimed and received.

Power purchase agreement

Signed PPA and all amendments; years remaining.
Change-of-control and assignment clauses: whose consent is needed to sell the shares.
Any pending tariff review, change-in-law claim or dispute.
Deemed-generation or compensation terms for grid outages.

Land

Registered lease that runs longer than the PPA.
Title search going back 30 years; consent of all co-owners and heirs.
Rent paid to date; mutation entries; no litigation.
Land-use conversion where the state requires it.

Plant condition

Independent engineer's site visit and report.
Thermal (infrared) drone scan for hotspots; IV-curve sampling of strings.
Module and inverter makes, warranties, and whether warranties transfer with the shares.
ALMM listing and domestic-content certificates where the scheme requires them.
Inverter replacement plan and spares.

Approvals

Commissioning certificate and commercial operation date.
Electrical inspector (CEIG) approval and periodic inspection dates.
Connectivity agreement and metering certificates.

Company, debt and tax

Audited accounts for three years; no undisclosed liabilities.
Existing loan terms; lender consent or refinancing at transfer.
Income-tax, GST and withholding filings; open demands.
Company-law filings and statutory registers.

Deal terms

Valuation certificate at or above fair value for RBI pricing rules.
Seller warranties and indemnities, with part of the price held back or in escrow where agreed.
Conditions to closing: consents, title, insurance.
RBI form FC-TRS within 60 days after closing.

Sources

General information only, not investment, legal or tax advice. Rules change and depend on your circumstances; take advice before you act. India Solar does not offer securities or guarantee returns.