Weeks after rollout, Centre defers domestic solar cell sourcing mandate till December 31
The Ministry of New and Renewable Energy (MNRE) extended the exemption for net-metering and open-access solar power projects from the Approved List of Models and Manufacturers (ALMM) List-II domestic solar-cell sourcing requirement to December 31, 2026
The mandate had originally taken effect around June 1, 2026, for government-backed, net-metered, and open-access solar projects, before being deferred within weeks of rollout
The ministry clarified there is no change in the overall ALMM policy and no blanket extension for all solar categories — the relief is limited to net-metering and open-access projects
From January 1, 2027, newly commissioned projects in these categories will be required to source solar PV modules from ALMM List-I and cells from ALMM List-II
Approved List of Models and Manufacturers (ALMM)
The ALMM is a regulatory list maintained by MNRE under the "Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirement for Compulsory Registration) Order, 2019" (issued January 2, 2019). It restricts which solar PV module and cell manufacturers/models can be used in government-linked solar projects, aiming to ensure quality, traceability, and domestic manufacturing compliance.
Key Details
- List-I covers solar PV modules; List-II (added later) covers solar PV cells
- Its applicability is anchored to projects procuring power for the government — including projects under guidelines issued by the Central Government under Section 63 of the Electricity Act, 2003 — as well as open-access and net-metering projects
- ALMM List-I compliance has applied to eligible government-linked module procurement for several years; List-II (cells) is the newer, more contentious layer given India's cell manufacturing gap
The deferral applies specifically to ALMM List-II (cells), because domestic cell-manufacturing capacity has not kept pace with the mandate's rollout timeline for net-metering/open-access projects.
Domestic Solar Manufacturing Gap and the PLI Framework
India's solar module manufacturing capacity has scaled up rapidly, driven partly by the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules, but cell manufacturing (the more capital- and technology-intensive upstream stage) lags well behind.
Key Details
- Domestic solar cell capacity was cited at roughly 31 GW against a module manufacturing capacity of roughly 193 GW
- For TOPCon-technology cells specifically, capacity was cited at around 10 GW against an approved TOPCon module capacity of around 172 GW
- Setting up a new 1 GW cell manufacturing line requires an estimated ₹250-400 crore in capital expenditure and 18-24 months of development time
- The PLI scheme for solar (approved under the National Programme on High Efficiency Solar PV Modules) is the principal policy lever to close this cell-manufacturing gap
The capacity mismatch between modules and cells is the direct reason cited for deferring the List-II mandate — enforcing it immediately risked stalling net-metering/open-access project commissioning for lack of eligible domestic cells.
Net Metering vs Open Access — Distinct RE Procurement Routes
Net metering and open access are two separate mechanisms by which non-utility consumers access renewable power, and UPSC often tests the distinction.
Key Details
- Net metering applies mainly to small (typically rooftop) consumers, allowing bidirectional metering so surplus solar generation is exported to the grid and adjusted against consumption
- Open access allows larger consumers (above a specified load/contract demand threshold, as prescribed by state electricity regulatory commissions) to procure power directly from a generator (including captive/group-captive renewable plants), bypassing the local distribution utility for that portion of supply, subject to cross-subsidy surcharge and other charges
- Both categories are treated distinctly from large government-tendered utility-scale solar projects for ALMM applicability purposes
The deferral specifically targets these two consumer-driven categories, distinguishing them from centrally tendered utility-scale projects, which have separately negotiated ALMM compliance timelines.
- ALMM List-II (cells) exemption for net-metering/open-access projects extended to: December 31, 2026
- Original mandate rollout: around June 1, 2026
- Domestic solar cell capacity: ~31 GW vs solar module capacity: ~193 GW
- TOPCon cell capacity: ~10 GW vs approved TOPCon module capacity: ~172 GW
- Capex for new 1 GW cell facility: ₹250-400 crore; development time: 18-24 months
- Governing order: ALMM Order, 2019 (MNRE, dated January 2, 2019)
- Mandatory compliance for new commissions in these categories begins: January 1, 2027