Make in India vs Market Reality

Solar Sector seeks Phased ALMM Transition

metro india news  I hyderabad

As the Union Ministry of New and Renewable Energy (MNRE) prepares to enforce Approved List of Models and Manufacturers (ALMM) List II from June 1, 2026, concerns are mounting across India's solar industry, with state level associations urging the Centre to defer implementation by at least one year. Industry bodies argue that while the objective of strengthening domestic manufacturing is laudable, the present supply ecosystem is not yet equipped to support the mandate without affecting project execution and costs.

The issue has gained traction following representations from the Telangana Solar Energy Association (TSEA), which has written to Union Minister Pralhad Joshi and Telangana State Power Distribution Company Limited (TGSPDCL), seeking intervention on behalf of solar developers, EPC contractors, consultants and system integrators operating in the state.

TSEA President Burra Ashok Kumar, Vice-president Rajesh Parakala, General Secretary Srihari Babu and Executive Member Dr Patel Badri Narayana stated that India's solar sector is witnessing unprecedented growth, with nearly 36.6 GW of solar capacity added during 2025 and annual installations expected to remain in the range of 35 to 40 GW. However, domestic solar cell manufacturing capacity, particularly for advanced TOPCon technology, remains inadequate to meet this demand. According to industry estimates cited by the association, reliable domestic TOPCon cell production is currently below 10 GW, creating a significant gap between demand and supply.

The association warned that enforcing ALMM List II, which mandates the use of domestically manufactured and approved solar cells in eligible projects, could trigger supply bottlenecks, delay project execution and substantially increase costs. Imported solar cells from countries such as China, Vietnam, Malaysia, Indonesia, Cambodia and Laos are presently 40 to 50 percent cheaper than domestic alternatives. This makes a sudden transition difficult for developers who have already secured power purchase agreements and financial closures based on earlier cost assumptions.

TSEA has recommended extending the ALMM List II implementation deadline from June 2026 to June 2027. It has also proposed allowing controlled imports of solar cells under a rational anti dumping duty framework to ensure adequate supply while domestic manufacturing capacities stabilize and scale up.

In a separate representation, TSEA urged TGSPDCL to recommend extension of the deadline for usage of non DCR solar modules from June 1, 2026 to January 1, 2027. The association cited delays in land registrations, banking approvals, project clearances, supply chain disruptions, volatility in aluminium and copper prices, geopolitical uncertainties and financing challenges. It sought a blanket extension without restrictive force majeure conditions and requested an overall seven month relaxation for ongoing projects in Telangana.

The concerns raised by TSEA echo those voiced by other industry groups in various states, including the Karnataka Renewable Energy Systems Manufacturers Association (KRESMA), which has also highlighted the mismatch between India's ambitious solar installation targets and the current domestic manufacturing capacity.