New Delhi: India solar power rule change is set to reshape the country’s renewable energy sector from June 1, 2026. The Government of India has made it mandatory for several solar projects to use only domestically manufactured solar cells approved under the Approved List of Models and Manufacturers (ALMM) framework.
The move is aimed at reducing dependence on imports, especially from China, and strengthening India’s solar manufacturing ecosystem. However, industry experts warn that the transition could lead to higher costs and supply challenges in the short term.
Details of Indigenous Solar Cells Manufacturing
The Ministry of New and Renewable Energy (MNRE) has implemented ALMM List-II for solar PV cells, effective from June 1, 2026.
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Under the new rule:
- Solar projects commissioned after June 1, 2026, must use approved domestically manufactured solar cells.
- Imported solar cells, including those sourced from China, cannot be used in covered projects.
- The rule applies mainly to:
- Net-metering projects
- Open-access solar projects
- Several government-supported solar installations
The government has confirmed that there will be no blanket extension beyond the June 1 deadline, though specific projects may receive relief on a case-by-case basis.
Why Has India Introduced This Rule?
India has long relied on imported solar cells, particularly from China.
The government’s objectives include:
- Promoting domestic manufacturing
- Reducing import dependence
- Strengthening supply chain security
- Supporting the “Atmanirbhar Bharat” initiative
- Creating jobs in the renewable energy sector
- Encouraging investments in solar cell manufacturing
According to official government notifications, the policy is intended to boost India’s self-reliance in renewable energy manufacturing.
How Does ALMM List-II Work?
ALMM (Approved List of Models and Manufacturers) is a government-approved list of manufacturers whose products can be used in eligible solar projects.
Under the new framework:
- Solar modules must be sourced from approved manufacturers.
- Solar cells used in those modules must also come from approved domestic manufacturers.
- Only manufacturers listed under ALMM requirements can supply cells for covered projects.
Indigenous Solar Cells Manufacturing: Who Will Be Impacted the Most?
1. Small and Medium Solar Developers
Smaller developers may face:
- Higher procurement costs
- Limited supplier choices
- Delays in project execution
Many developers previously depended on imported cells because they were cheaper and widely available.
2. Commercial and Industrial Consumers
Businesses installing rooftop solar systems or open-access solar projects may see:
- Higher project costs
- Longer procurement timelines
- Reduced flexibility in sourcing components
Industry stakeholders have expressed concerns regarding availability and pricing during the transition phase.
3. Residential Solar Buyers
Homeowners planning rooftop solar systems under net-metering arrangements could experience:
- Slightly higher installation costs
- Possible delays if domestic cell supplies remain tight
However, the long-term objective is to create a stable domestic supply chain.
Indigenous Solar Cells Manufacturing: Who Stands to Benefit?
Domestic Solar Cell Manufacturers
Indian solar cell manufacturers are expected to be the biggest beneficiaries.
Benefits include:
- Increased demand
- Better pricing power
- Expansion opportunities
- New manufacturing investments
Several major Indian companies have already announced large-scale solar cell manufacturing capacity additions.
Indian Renewable Energy Ecosystem
The policy could help:
- Build local supply chains
- Create manufacturing jobs
- Increase investments in clean energy
- Reduce dependence on foreign suppliers
These developments align with India’s target of expanding renewable energy capacity and strengthening domestic industry.
Will Solar Prices Increase?
Industry experts believe prices could rise in the short term because:
- Domestic cell manufacturing capacity is still expanding.
- Demand may exceed supply initially.
- Developers will have fewer sourcing options.
Some industry estimates suggest project costs could increase during the transition period until additional domestic manufacturing capacity comes online.
Government’s Stand on Indigenous Solar Cells Manufacturing
The MNRE has made it clear that:
- The June 1, 2026 deadline remains in force.
- No general extension will be granted.
- Relief may be considered only for projects where substantial investments have already been made.
The government believes the industry has had sufficient time to prepare for the transition.
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