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MNRE's ALMM Amendment: Impact on Solar Manufacturing and Market Dynamics

The Ministry of New and Renewable Energy (MNRE) has amended the Approved List of Models and Manufacturers (ALMM) Order 2019 to further strengthen India’s solar manufacturing sector. According to the latest update, all solar modules used in projects must source their solar cells from suppliers listed in the ALMM. The compliance deadline for this regulation is set for June 1, 2026, with certain nuances in implementation.

Impact on Domestic Manufacturing

The ALMM policy is a non-tariff barrier designed to promote local solar manufacturing by ensuring a domestic supply chain. However, it has also disrupted supply-demand dynamics, leading to price fluctuations in solar cell procurement.

Current Manufacturing Landscape

• Waaree Group has recently commissioned a 1.4 GW mono PERC facility in Chikhli, Gujarat, with an additional 1.5 GW TOPCon cell facility expected in the coming weeks.
• Other key players with 1 GW+ capacity include ReNew, TATA Power, and Premier Energies Limited.
• According to a Kotak report, India's solar cell manufacturing capacity (excluding thin-film technology) currently stands at 18.4 GW.

While India’s solar sector is protected through ALMM and tariffs, the long-term sustainability of domestic manufacturing remains uncertain. China’s technological edge in solar manufacturing presents a significant challenge, and any policy shift in tariffs could disrupt the current momentum.

For India to strengthen its solar supply chain, the upstream value chain must be developed, including polysilicon, ingot, and wafer production. Expanding these capabilities will be crucial for reducing dependence on imports and ensuring the sector’s resilience in the long run.