India Eases ALMM Mandate Timeline to Boost Domestic Solar Cell Production

In a significant move to enhance domestic manufacturing while providing clarity to renewable energy developers, the Ministry of New & Renewable Energy (MNRE) has amended its Approved List of Models and Manufacturers (ALMM) order for solar photovoltaic (PV) cells. The amendment, issued on July 28, 2025, is aimed at streamlining the compliance process for government-backed solar power projects and creating a more conducive environment for solar cell manufacturing across India.

ALMM for Solar Modules and Cells

The ALMM framework was launched by MNRE as a quality assurance mechanism to ensure reliability, performance, and traceability of solar PV modules and manufacturers.

• The ALMM for solar PV modules was notified and came into effect on April 10, 2021.

• The ALMM for solar PV cells was scheduled to become mandatory from June 1, 2026.

The goal was two-fold:

1. Protect consumer interest and project quality through vetted manufacturing.

2. Stimulate the domestic solar manufacturing ecosystem, essential for India's energy security and clean energy ambitions.

Thanks to this initiative, India’s domestic solar manufacturing capacity has expanded rapidly:

• 91 GW capacity for solar PV modules

• 27 GW capacity for solar PV cells

Key Amendment Highlights

The latest amendment (dated 28 July 2025) focuses on solar PV cells, particularly in projects bid out by government agencies, including those under Section 63 of the Electricity Act, 2003.

➤ Delayed ALMM Mandate Implementation for Solar Cells

• New Rule: The ALMM compliance for solar PV cells will become mandatory only one month after the publication of the ALMM list for solar cells.

• This list is currently under preparation by the MNRE.

• However, the final deadline remains unchanged: For all projects commissioned from June 1, 2026 onwards, solar PV cells must be procured from ALMM-listed manufacturers.

This phased enforcement is designed to give developers and EPC contractors enough time to prepare, avoiding supply chain shocks or disruptions in upcoming tenders.

What This Means for Project Bidders

The amendment is particularly relevant for government-led bidding processes, including tenders issued by public sector undertakings (PSUs), State Electricity Boards, and agencies conducting competitive bidding under Section 63.

Bidders will now be able to:

• Prepare their submissions with greater clarity about procurement requirements.

• Plan module and cell sourcing strategies without ambiguity.

• Incorporate ALMM compliance timelines directly into their bid pricing and delivery schedules.

The step will reduce project execution risks, especially for large-scale solar developers who often work with long procurement timelines.

A Boost to Domestic Solar Cell Manufacturing

India has already made significant strides in solar module manufacturing. However, solar cell manufacturing has lagged, often relying on imports—particularly from China.

By providing certainty and a structured timeline, the MNRE aims to:

• Encourage capacity expansion in solar cell manufacturing.

• Attract new investment in the cell manufacturing segment.

• Enable technological upgrades and supply chain localization.

With this move, India hopes to bridge the gap between module and cell manufacturing, helping the entire solar ecosystem become more self-reliant and globally competitive.

Industry Response and Implications

Industry stakeholders have largely welcomed the amendment, noting that:

• It balances industry growth with compliance flexibility.

• It de-risks bidding in upcoming solar auctions.

• It will stabilize pricing and reduce last-minute rushes that developers often face when regulatory deadlines are unclear.

The policy is seen as part of the larger government effort to create a robust and sustainable renewable energy manufacturing base in India, in line with the Atmanirbhar Bharat (Self-Reliant India) vision.

Looking Ahead: ALMM as a Strategic Enabler

The ALMM mechanism, though initially seen as a regulatory burden by some, has evolved into a strategic enabler of India’s green energy ambitions. With supportive amendments and transparent guidelines, MNRE is helping:

• Ensure quality assurance in solar deployment,

• Promote Make-in-India solar technologies,

• Create jobs in clean energy manufacturing, and

• Boost export potential for Indian solar equipment manufacturers.

With India's target of achieving 500 GW of non-fossil fuel capacity by 2030, aligned with its net zero commitment by 2070, the solar manufacturing value chain will be pivotal to meeting those goals.