By Vvon Engineering Team | Published | Updated
Check current NBR notices, importer and entity eligibility, IDCOL finance terms and the documentation required before counting a solar incentive.
Solar EPC & street lighting RFQ checklist (TXT)
Solar-related tax and finance treatment depends on the equipment, importing entity, transaction, project structure and applicable date. Use this checklist to obtain written eligibility and documentary requirements before procurement.
Do not assume all solar panels, inverters, controllers and batteries are VAT-exempt or that a project automatically costs 15% less. Ask the tax team to identify the current law and SRO, exact goods or services, eligibility conditions and invoice treatment.
Keep equipment, works and services identifiable in the scope and invoice where required by the correct tax treatment. A contract split alone cannot create an exemption. Agree the compliant documentation before invoicing.
Check the operative tariff and applicable customs SRO for each exact item and importer. Customs duty is only one part of import taxation; other taxes and conditions may apply. NBR's current list includes solar-energy SRO 159-Ain/2026/14/Customs dated 11 June 2026, whose eligibility and schedules must be read before claiming a concession.
Use an accurate goods description, classification, packing list and invoice. A solar-project label does not automatically change an aluminium rail or cable's HS heading or qualify a mixed shipment for a concession.
Name the importer and allocate duty, clearance, documentation and change-in-law risk in the contract. Confirm responsibilities even when buying delivered equipment.
NBR lists SRO 211-Ain/Aykor-2/2026, dated 11 June 2026, concerning income-tax exemption for electricity generated from renewable solar energy. Have a qualified adviser read the operative notice and amendments for the proposed entity, activity and dates; do not apply a universal ten-year holiday.
A reduction in a factory's purchased electricity and income from selling electricity are different items. Entity structure, CAPEX/OPEX arrangements and actual activity affect the analysis. Obtain project-specific tax advice before including an exemption in the model.
IDCOL publishes renewable-energy and rooftop-programme financing information. Published programmes and historical rates are not a loan offer. Request current equity, pricing, fees, tenor, security, eligibility and disbursement conditions.
Compare annual debt service with the net operating benefit under base and downside scenarios. Financing changes the timing and cost of cash flows; it does not guarantee that a project funds itself from day one.
| Possible treatment | Written confirmation needed |
|---|---|
| VAT | Exact taxable supply/service, applicable SRO and conditions. |
| Customs | HS classification, importer eligibility, all taxes and notice conditions. |
| Income tax | Entity, activity, commencement dates and operative exemption. |
| Finance | Current sanctioned term sheet and drawdown requirements. |
| Net metering | Approved connection, billing and quarterly settlement rules. |
| Equipment/project records | Required SREDA and utility evidence; not an automatic financial incentive. |
Assign the owner's finance and procurement teams to confirm the requirements before the relevant commitment or filing deadline. Use the applicable notice or lender checklist to set the sequence.
| Workstream | Responsible coordination | Evidence |
|---|---|---|
| Tax and VAT | Owner's qualified advisers and supplier | Applicable law/SRO and invoice treatment. |
| Import clearance | Importer and authorised customs representative | Classification, eligibility, invoices and packing list. |
| Financing | Borrower and lender | Technical file, accounts, term sheet and conditions. |
| Net metering | Consumer, contractor and utility | Application, approved design, inspection and agreement. |
| Records | Named project document owner | Consistent dated originals and approval correspondence. |
Read down the third column and a pattern appears. The incentives that reduce equipment cost are handled inside procurement, which is the EPC contractor's side of the fence. The incentives that reduce tax or fund the capital are handled by the owner's finance function. Neither side automatically knows what the other is doing, and that gap is where claims are lost. Nominate one person on the owner's side to hold the whole list from the first day of the project.
SREDA equipment enlistment, utility interconnection approval and entry in the national renewable-energy database serve different purposes. Follow the guideline and utility process for the correct stage; the 2025 guideline includes database entry and an SID after the final agreement. None of these records alone grants a tax concession.
Confirm the operative notices and finance terms when the transaction is made. Keep the source, date, assumptions and adviser's conclusion with the board or procurement paper.
Consult the relevant edition and the documents for the exact equipment and site: NBR: current income-tax SROs; NBR: current customs SROs; NBR: VAT SROs; IDCOL: renewable-energy lending terms; Power Division / SREDA: Net Metering Guidelines 2025, English.
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