Centre extends exemption for select RE projects from sourcing solar cells from ALMM-listed manufacturers
The nodal renewable energy ministry extended the exemption from mandatory sourcing of solar PV cells from Approved List of Models and Manufacturers (ALMM) List-II manufacturers for select categories of renewable energy projects, specifically net-metering rooftop solar and open-access RE projects, until 31 December 2026.
The relief applies to projects that had reached a defined stage of implementation before the List-II cell-sourcing mandate took effect on 1 June 2026.
The relief was framed as intended to protect existing investments already committed to these projects, support the ramp-up of domestic solar cell manufacturing capacity, and ensure a smoother transition to full compliance with ALMM-listed cell sourcing.
Projects commissioned after 31 December 2026 will be required to fully comply with ALMM List-II sourcing norms.
ALMM Order — Approved List of Models and Manufacturers
The ALMM framework is a domestic-manufacturing mandate for the solar sector, requiring solar PV modules and cells used in government-linked or incentivized projects to come from manufacturers on an approved list.
Key Details
- Issued by the Ministry of New and Renewable Energy (MNRE) in January 2019 as the "Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirement for Compulsory Registration) Order"
- List-I covers approved solar PV module manufacturers and models, mandatory since 2021 for specified categories of projects
- List-II covers approved solar PV cell manufacturers and models; compliance for project commissioning was mandated from 1 June 2026
- The objective is to reduce import dependence — chiefly on Chinese-manufactured cells and modules — and build domestic manufacturing capacity across the solar value chain
The exemption is a time-bound, calibrated relief operating within the ALMM List-II mandate for specific project categories, not a rollback of the broader domestic-manufacturing requirement.
PLI Scheme for High-Efficiency Solar PV Modules
The Production Linked Incentive (PLI) Scheme is the manufacturing-side complement to the ALMM's demand-side mandate, intended to build the domestic cell manufacturing capacity that ALMM List-II compliance requires.
Key Details
- Approved by the Union Cabinet in 2021 (Tranche-I) and expanded in 2022 (Tranche-II), with a combined outlay of about Rs 19,500 crore, administered by MNRE
- Aims to build gigawatt-scale, vertically integrated domestic manufacturing from polysilicon ingots/wafers through cells to finished modules
- The ALMM List-II sourcing mandate is designed to create assured domestic demand for the cell-manufacturing capacity being built under the PLI scheme, linking the two policies
The extended exemption is calibrated to avoid stranding projects already underway while domestic cell manufacturing capacity under the PLI scheme continues to scale up to meet List-II demand.
Net-Metering and Open Access — Distributed Renewable Energy Categories
The exemption specifically targets net-metering and open-access RE project categories rather than utility-scale solar, reflecting differences in how these categories are structured and regulated.
Key Details
- Net-metering allows rooftop solar consumers to export surplus generation to the grid and be billed on net consumption; it is regulated through state electricity regulatory commission rules under the Electricity Act, 2003 framework
- Open access allows large consumers, typically industrial or commercial, to source power directly from renewable energy generators by paying wheeling and transmission charges rather than purchasing solely through the local distribution company; it is enabled under Section 42 of the Electricity Act, 2003
- Both categories often involve smaller, more distributed developers who are more exposed to disruption from sudden changes in input-sourcing requirements, compared to large utility-scale solar parks developed with longer lead times
The exemption was carved out specifically for net-metering and open-access projects to shield smaller, distributed RE developers from disruption, while larger utility-scale projects continue transitioning to List-II compliance on the original schedule.
- ALMM Order issued: January 2019, by the Ministry of New and Renewable Energy
- ALMM List-II (solar PV cells) mandate for project commissioning: effective from 1 June 2026
- Exemption extended for net-metering and open-access RE projects: until 31 December 2026
- Projects commissioned after 31 December 2026 must comply with List-II sourcing norms
- PLI Scheme for High-Efficiency Solar PV Modules: approved 2021 (Tranche-I), expanded 2022 (Tranche-II); combined outlay approximately Rs 19,500 crore
- Legal basis for open access to renewable power: Section 42, Electricity Act, 2003