- 01What green hydrogen is — and why solar is central
- 02India's NGHM — where the mission stands in 2026
- 03The solar opportunity inside green hydrogen
- 04Project scale and procurement requirements
- 05Sensitivity: how solar cost affects hydrogen economics
- 06What EPC contractors should do now
- 07Procurement considerations for GH2-linked solar
- 08Key takeaways for contractors
India's National Green Hydrogen Mission launched in January 2023 with a total outlay of ₹19,744 crore, targeting 5 million metric tonnes per annum (MMTPA) of domestic green hydrogen production by 2030 — alongside roughly 125 GW of associated renewable energy capacity. That renewable capacity has to be built. By somebody.
For solar EPC contractors, green hydrogen is not a distant market. SIGHT Tranche-1 plants begin commercial operation from August 2026 — meaning the renewable plants that power these electrolysers are moving from tender to procurement now. The contractors who understand this connection, and who can source and deliver dedicated renewable infrastructure at the scale these projects demand, are positioning for what could become India's largest new solar tender category of the next five years.
What green hydrogen is — and why solar is central
Green hydrogen is produced by splitting water into hydrogen and oxygen using an electrolyser powered entirely by renewable energy. No fossil fuels, no process carbon emissions. The hydrogen produced is used as an industrial feedstock (fertilisers, refineries, steel), as a fuel for heavy transport, or exported as green ammonia.
Solar plant
Dedicated RE source — typically 4–6× the electrolyser MW capacity
Electrolyser
Splits water into H₂ and O₂ using renewable electricity
Green hydrogen
Used in fertilisers, refining and steel — or exported as ammonia
End use
Industry, transport, export — reducing fossil fuel dependence
The critical procurement insight: electricity is 60–70% of the cost of green hydrogen production. Green hydrogen discovered under SIGHT competitive bidding costs ₹397/kg for supply to IOCL refineries and ₹387/kg for BPCL/HPCL, and is expected to fall towards ₹260–310/kg as the scheme scales. The primary lever on that cost is the price of the solar power feeding the electrolyser. Cheaper solar means cheaper hydrogen. That is why every serious green hydrogen developer is either building or contracting for a large dedicated renewable plant — and why solar EPC contractors are the critical enabler of the entire value chain.
India's NGHM — where the mission stands in August 2026
SECI has run multiple SIGHT auctions across both components. Cumulatively, 19 companies now hold green hydrogen production allocations totalling about 8,62,000 tonnes per annum, and 15 firms hold awards for roughly 3,000 MW of annual electrolyser manufacturing capacity. On the demand side, SECI has discovered prices for 7,24,000 MTPA of green ammonia supply to 13 fertiliser units. These are awarded contracts moving into execution — not proposals.
The counterweight is equally important to understand before you build a business plan around it: as of February 2026, only about 8,000 tonnes per annum of green hydrogen capacity had actually been commissioned, against 8,62,000 TPA awarded. Awarded is not built. The gap between the two is exactly where EPC execution capacity sits over the next three to five years.
| NGHM component | Status — August 2026 | Solar EPC implication |
|---|---|---|
| SIGHT Component I — electrolyser manufacturing | ~3,000 MW/yr of manufacturing capacity awarded across 15 firms | Domestic electrolysers entering the market — reduces import dependency for developers |
| SIGHT Component II — green hydrogen production | ~8,62,000 TPA awarded across 19 companies | Each awarded project needs a dedicated solar/wind source — EPC contracts flowing now |
| Commissioned capacity | ~8,000 TPA as of February 2026 | Execution, not allocation, is the bottleneck — the build-out is ahead, not behind |
| SIGHT Tranche-1 commissioning | Commercial operations begin August 2026 | Solar procurement for Tranche-1 projects is active — not upcoming |
| Green hydrogen hubs | Tendering in progress | Hub-scale projects (Gujarat, Andhra, Odisha) require GW-range EPC capability |
| Green ammonia export projects | ACME, Adani and others leading; ACME's Odisha facility is reported at ~₹27,000 crore for 1.10 MMTPA | Enormous dedicated renewable infrastructure attached to each facility |
| NTPC green hydrogen | Active tender pipeline alongside NTPC's stated ~60 GW RE ambition by 2032 | Includes green hydrogen manufacturing zones and storage facilities |
Figures compiled from SECI/MNRE disclosures and public reporting to August 2026. Award and commissioning numbers change with each tranche — verify current status on mnre.gov.in and seci.co.in before bidding.
The solar opportunity inside green hydrogen
For most small and mid-size EPCs, direct green hydrogen projects are not an immediate market. The projects are large, the clients are industrial conglomerates, and pre-qualification is demanding. That is an honest assessment — and it should shape how you position rather than whether you engage.
Dedicated renewable energy zones (large EPC firms)
Electrolyser-linked solar parks under NGHM are driving ultra-large project tenders, typically 500 MW to multi-GW plants co-located with or near electrolyser facilities. The capability required — large-scale ground-mount, grid interconnection, HV evacuation, BESS integration — is beyond most mid-size contractors today. It is a growth target, not a current addressable market, for firms building toward that scale.
Industrial captive solar for GH2 users (all EPC firms)
Industrial clients evaluating green hydrogen — large manufacturers, fertiliser producers, refineries — need substantial captive solar as part of the same energy strategy. An EPC who understands the hydrogen connection can open a conversation about long-term energy procurement rather than a one-off rooftop installation.
This is the more immediate opportunity. A fertiliser plant or refinery evaluating green hydrogen needs captive solar now — to reduce its electricity cost baseline and its emissions profile. The contractor who positions as a renewable energy partner for industrial decarbonisation, rather than as an installer, wins larger and longer contracts.
Project scale and procurement requirements
Green hydrogen-linked solar is categorically different in scale from commercial rooftop or standard ground-mount EPC. Understanding what procurement looks like at each tier is the first step toward qualifying for it.
| Project type | Typical solar capacity | Key procurement requirements | EPC suitability |
|---|---|---|---|
| Pilot / R&D green hydrogen plant | 1–10 MW | Standard ground-mount, grid-tied, ALMM modules | Mid-size EPC can compete directly |
| Industrial captive solar for a GH2 user | 10–100 MW | Open access or captive, HT metering, CEA interconnection | Strong mid-size EPC opportunity |
| SIGHT-linked production facility | 100–500 MW | Dedicated RE zone, ISTS interconnection, BESS co-location | Large EPC firms — consortium possible |
| Green hydrogen hub / export terminal | 500 MW – 5 GW+ | Ultra-large ground-mount, HV/HVDC evacuation, multi-year execution | Top-tier EPC only |
Where the actual opportunity is in 2026–27
- •
Direct GH2 tenders: mainly accessible to large EPC firms with GW-scale track records. Pre-qualification thresholds are high — typically 200 MW+ of completed projects of similar type.
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Industrial captive solar: the real near-term opportunity. Fertiliser producers, refineries and steel plants evaluating GH2 need large captive solar now. Projects of 10–100 MW are accessible to mid-size EPCs.
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Consortium approach: smaller EPCs can participate in large GH2-linked tenders as consortium partners — handling civil, electrical BoS, or O&M scope within a larger structure.
- •
Pilot-scale projects: PSU-led pilot GH2 projects at 1–10 MW solar scale are genuinely accessible to established mid-size contractors.
Sensitivity: how solar cost affects green hydrogen economics
The single biggest lever on green hydrogen cost is the price of electricity — which means the cost of solar. Understanding the relationship lets an EPC articulate its value proposition to an industrial client in financial terms rather than technical ones.
| Solar tariff (₹/kWh) | Electrolyser efficiency | Electricity cost per kg H₂ | Impact on GH2 viability |
|---|---|---|---|
| ₹2.00 (captive solar, best case) | 50 kWh/kg | ₹100/kg | Highly competitive — supports ₹280–320/kg all-in cost |
| ₹2.50 (open access solar, typical) | 50 kWh/kg | ₹125/kg | Commercially viable — within the SIGHT target range |
| ₹3.50 (grid power, industrial HT) | 50 kWh/kg | ₹175/kg | Marginal — all-in cost exceeds the incentive threshold |
| ₹5.00+ (spot / open access with charges) | 50 kWh/kg | ₹250/kg | Unviable — hydrogen cost too high to compete |
Illustrative model. Actual electrolyser efficiency varies by technology (PEM vs alkaline) and load profile. Green hydrogen economics depend on multiple variables — this table isolates the electricity cost contribution only.
The table makes the EPC contractor's value proposition concrete: at 50 kWh/kg, every ₹0.50/kWh reduction in solar tariff cuts green hydrogen cost by ₹25/kg. A well-executed captive solar EPC delivering reliable power at ₹2.00–2.50/unit is not a construction contract for an industrial GH2 client. It is an energy cost strategy that determines whether their hydrogen project is commercially viable at all.
What EPC contractors should do now
Positioning your firm for green hydrogen-linked solar tenders
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Map your industrial client base for GH2 adjacency: which existing or target clients are in fertilisers, refining, steel or chemicals? These are the first movers on industrial green hydrogen — and they already need large captive solar.
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Build a captive solar + open access pitch: industrial GH2 clients want solar delivered as an energy cost solution, not as a construction project. Develop a financial model showing how your EPC reduces their hydrogen production cost per kg.
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Track SECI and NTPC tender notifications: register on the SECI eProcurement portal (seci.co.in) and NTPC eProcurement for GH2-linked RE tenders. Pre-qualify before bidding rounds open.
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Evaluate consortium pre-qualification: if you cannot meet direct EPC thresholds for large GH2 projects, identify a consortium lead and negotiate a sub-EPC scope — civil, electrical BoS, or O&M — now, not when the tender drops.
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Strengthen ALMM and open access compliance: GH2-linked solar is government-supported, so ALMM compliance is non-negotiable. Build your pre-qualified ALMM-II module supplier base before tendering.
Procurement considerations for GH2-linked solar
Solar procurement for green hydrogen-linked projects differs from standard ground-mount in several ways that directly affect your BOQ, supplier selection and financing approach.
| Procurement element | Standard ground-mount | GH2-linked solar |
|---|---|---|
| Module compliance | ALMM List-I (government projects) | ALMM List-I + List-II expected — government-supported scheme |
| System size | Typically 1–50 MW | Often 100 MW+ — BOQ volumes and supplier capacity must match |
| Grid interconnection | DISCOM 33 kV / 66 kV | Often ISTS-level — CEA interconnection standards, PGCIL coordination |
| BESS requirement | Optional for most projects | Increasingly expected — electrolysers need stable, uninterrupted power |
| O&M tenure in contract | 1–5 years typical | 5–25 years — electrolyser clients need long-term reliability guarantees |
| Working capital exposure | ₹2–20 crore per project | ₹20–200 crore+ — procurement credit and project finance become essential |
What contractors should carry forward
NGHM is not a future programme — SIGHT Tranche-1 commercial operations begin August 2026, and the solar plants powering these electrolysers are in procurement now.
Electricity is 60–70% of green hydrogen production cost. Cheaper solar means viable hydrogen. An EPC delivering low-cost captive solar is enabling an industrial sector, not just building a power plant.
Awarded capacity (~8,62,000 TPA) dwarfs commissioned capacity (~8,000 TPA as of Feb 2026). The build-out — and the EPC demand attached to it — is still ahead.
For most mid-size firms, the immediate opportunity is industrial captive solar for GH2 users — fertiliser plants, refineries, steel — at 10–100 MW scale. That is accessible today.
Register on SECI's portal now. Pre-qualification takes weeks and bidding rounds open with limited notice — firms not pre-registered cannot participate.
ALMM compliance is non-negotiable for NGHM-linked projects. Build your pre-qualified domestic-cell module supplier base before you need it.
Frequently Asked Questions
Can a mid-size EPC contractor participate in green hydrogen solar tenders directly?+
For most large SIGHT-linked projects, no — pre-qualification typically requires 200 MW+ of completed solar EPC experience. But industrial captive solar projects of 10–100 MW linked to GH2 users are fully accessible to established mid-size EPCs, and consortium participation in large tenders is a viable route. PSU-led pilot GH2 projects at 1–10 MW solar scale are also genuinely accessible.
What is the SIGHT scheme and how does it relate to solar procurement?+
SIGHT — Strategic Interventions for Green Hydrogen Transition — has two components: ₹4,440 crore for electrolyser manufacturing over five years, and ₹13,050 crore for green hydrogen production over three years. Every SIGHT-backed facility needs a dedicated renewable power source, primarily solar. EPCs do not participate in SIGHT directly; they execute the solar infrastructure that makes SIGHT projects viable.
What is the current green hydrogen production cost in India?+
Under SIGHT competitive bidding, green hydrogen is priced at ₹397/kg for IOCL and ₹387/kg for BPCL/HPCL, and is expected to fall towards ₹260–310/kg as production scales. Electricity — primarily solar — contributes roughly 60–70% of that. At 50 kWh/kg, every ₹0.50/kWh reduction in solar tariff cuts hydrogen cost by about ₹25/kg.
How much green hydrogen capacity has actually been commissioned in India?+
About 8,000 TPA of green hydrogen capacity was commissioned as of February 2026, against roughly 8,62,000 TPA awarded under SIGHT. The mission's near-term story is execution, not allocation — which is precisely where EPC capacity is the binding constraint over the next three to five years.
Where are India's green hydrogen hubs being developed?+
Hub development is concentrated in Gujarat, Andhra Pradesh, Odisha and Rajasthan — states combining high solar irradiance, port access for export, and proximity to industrial demand. State renewable energy agencies are the entry point for state-level GH2-linked solar tenders.
Are ALMM-II modules mandatory for GH2-linked solar projects?+
Treat them as mandatory. SIGHT is a government scheme, and ALMM compliance — including List-II, covering modules made from domestic cells — applies to solar procured under or linked to NGHM incentives. Pre-qualify your ALMM-II compliant module suppliers before bidding, not after winning, and confirm the exact list applicable to each specific tender.
When should I register on the SECI portal for NGHM tenders?+
Immediately, if you have not already. SECI's eProcurement portal (seci.co.in) is the primary channel for NGHM-linked tenders. Vendor registration and pre-qualification documents take two to four weeks to process, and bidding rounds open with limited notice — you cannot register and bid in the same window.
How much solar capacity does a green hydrogen project need?+
A dedicated solar plant is typically 4–6× the electrolyser MW capacity, because electrolysers need near-continuous power while solar generates only during daylight hours. This is why NGHM's 5 MMTPA target carries roughly 125 GW of associated renewable capacity — and why BESS co-location is increasingly expected in GH2-linked solar scopes.
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All figures, policy details and market data in this guide are drawn from publicly available sources — MNRE, SECI and industry reporting — and Headsup B2B research as of August 2026. NGHM scheme parameters, SIGHT incentive structures, award tallies and tender eligibility change between tranches: always verify current terms on mnre.gov.in and seci.co.in before bidding. This content is for information purposes only and does not constitute financial, legal or tendering advice.
