New Policy changes set to accelerate domestic production of solar PV cells

New Delhi(The Uttam Hindu): The Ministry of New and Renewable Energy (MNRE) has introduced an important change to the Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) Order, 2019, which aims to strengthen domestic solar manufacturing and promote self-reliance in India’s green energy sector. This amendment introduces List-II for solar PV cells, and the new rules will take effect from June 1, 2026. Once the rule is implemented, all solar PV modules used in various projects – including government-backed initiatives, net-metering projects, and open access renewable energy projects – will need to use solar cells sourced from ALMM List-II. The government says this will ensure that the solar cells used in India’s energy infrastructure meet high standards of quality and reliability. Why the Change? The introduction of List-II is a response to India’s growing ability to manufacture solar components domestically. Until now, List-II was not introduced because of the limited supply of solar cells produced in India. However, with the expected growth in the country’s solar cell production capacity in the coming year, this amendment is set to significantly improve the situation. The amendment was approved by Pralhad Joshi, the Minister for New and Renewable Energy, and underscores India’s commitment to a greener, more sustainable energy future.

What Does This Mean for Projects? For projects already bid out before this rule was announced, there will be an exemption. These projects can still use solar cells from outside the new List-II, even if they are completed after June 2026. However, all future projects will be required to use both solar PV modules and cells from the respective ALMM lists. This shift will ensure higher standards and more sustainable practices in India’s solar power sector. What Are the Expected Benefits? The government believes that by using solar PV cells from List-II, it can build a stronger domestic solar supply chain, reduce the carbon footprint of imported solar modules, and improve India’s energy security. This policy change supports India’s goal of achieving 500 GW of non-fossil fuel-based power capacity by 2030 and aligns with its broader clean energy targets. The amendment is also expected to accelerate the growth of India’s solar manufacturing industry, leading to job creation, innovation, and increased investment in high-tech manufacturing. As demand for locally made solar PV cells rises, India is likely to see improved quality and reliability in solar products used in the country, ensuring that solar projects meet the highest standards. What About Thin-Film Solar Technology? The government has also recognized the importance of thin-film solar technology for India’s renewable energy future. According to the new amendments, thin-film solar modules that are made in integrated solar PV module manufacturing units will also be considered in compliance with List-II. This is expected to boost technological innovation and support a more diverse range of solar solutions. What Happens Next? In the coming months, the MNRE will release detailed guidelines to help manufacturers and project developers understand how to comply with the new rules for sourcing solar PV cells from List-II. How Will This Help India’s Clean Energy Future? This policy change will help India reduce reliance on imports, boost the domestic solar industry, create new economic opportunities, and make a meaningful contribution to the country’s climate goals. By supporting domestic solar cell manufacturing, India is positioning itself as a leader in renewable energy, ready to strengthen its energy independence, promote sustainable development, and become a global hub for solar energy innovation.