Govt tweaks policy to boost domestic manufacturing of solar PV cells

New Delhi: Ministry of New and Renewable Energy (MNRE) has announced a significant amendment to the Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) Order, 2019, in a major step towards boosting domestic manufacturing and fostering self-reliance in India’s green energy industry.

This amendment introduces the long-awaited List-II for solar PV cells under the ALMM framework and is set to take effect from June 1, 2026. “Once the new rule kicks in, all solar PV modules used in projects – including government-backed schemes, net-metering projects, and open access renewable energy initiatives – will be required to source their solar cells from ALMM List-II, ensuring quality and reliability in solar PV cells used in India’s energy infrastructure,” Ministry of New and Renewable Energy (MNRE) said in a statement.

The introduction of List-II is a response to the country’s rapidly growing solar manufacturing capabilities. Until now, the absence of List-II was due to a limited domestic supply of solar cells. However, with substantial growth in India’s solar cell production capacity anticipated over the next year, this amendment is poised to change the dynamics of the industry, the statement said.

The amendment has been approved by the Minister for New and Renewable Energy Pralhad Joshi and underscores the government’s commitment to advancing India’s renewable energy agenda and ensuring a greener, more sustainable future for all, the statement said.

For projects that have already been bid out but whose last date of bid submission is before the issuance of this order, an exemption will apply, allowing them to proceed without the requirement to use solar PV cells from List-II, even if their commissioning date is post-1st June 2026. However, for all future bids, the requirement to source both solar PV modules and cells from the respective ALMM lists will be mandatory, marking a decisive shift towards quality assurance and sustainability in India’s solar power sector, the statement explained.

“This policy enhancement is expected to have profound economic and environmental benefits. By mandating the use of solar PV cells which will be included in the ALMM List-II following a rigorous procedure to verify the quality and reliability, the government aims to foster a robust domestic solar PV supply chain, reduce the carbon footprint associated with solar module imports, and bolster India’s energy security. This move aligns with India’s broader goal of achieving 500 GW of non-fossil fuel-based power capacity by 2030 and making substantial strides in its commitment to clean energy,” the statement said.

The amendment will not only strengthen India’s position as a global leader in renewable energy but will also accelerate the growth of India’s solar manufacturing sector. The increased demand for solar PV cells in India is expected to stimulate innovation, create new job opportunities, and attract investments in high-tech manufacturing. It will also enhance the overall quality and reliability of solar products used in India, ensuring that projects meet the highest standards, the statement pointed out.

The government has also recognised the role of thin-film solar technology in India’s renewable energy future. Under the new amendments, thin-film solar modules manufactured in integrated solar PV module manufacturing units will be considered in compliance with the requirement to use solar PV cells from List-II, further driving technological innovation and diversification within the sector, the statement said.

In the coming months, the MNRE will issue detailed procedural guidelines for the enlistment of solar PV cells under ALMM List-II, providing clear instructions for manufacturers and project developers on how to comply with the updated requirements.

By prioritising solar PV cell manufacturing and reducing reliance on imports, this amendment lays a strong foundation for India’s clean energy future. It supports the growth of the solar power industry, generates economic opportunities, and makes a meaningful contribution to the country’s climate goals. With this move, India is set to strengthen its energy independence, support sustainable development, and become a global hub for solar energy innovation, the statement added.