MNRE proposes ALMM expansion to include solar PV cells, raising concerns over cost and supply
The Ministry of New and Renewable Energy (MNRE) has proposed adding solar photovoltaic (PV) cells to its Approved List of Models and Manufacturers (ALMM), with implementation expected by April 2026.
This new category, termed “ALMM List-II,” would mandate that all ALMM-compliant solar projects source cells from certified domestic manufacturers.
Experts caution that this move could increase tariffs by 40-50 paise per unit, affecting project costs, timelines, and India’s renewable energy targets.
Industry leaders, including AMPIN Energy Transition CEO Pinaki Bhattacharyya, warn that non-tariff barriers might impede innovation and affordability, potentially prompting trade retaliation from other countries. Bhattacharyya argues that India should first achieve cell production self-sufficiency to avoid economic inefficiencies.
The added cost of domestic cell sourcing may lead to supply constraints, potentially slowing solar capacity additions, according to Vineet Bhatia of Grant Thornton Bharat.
The rising domestic costs due to India’s solar import duties already make Indian modules pricier than Chinese alternatives, and with projected tariffs around Rs 3 per unit, Bhatia suggests this may delay power purchase agreements and expansion.
Ashish Agarwal of BluPine Energy notes that previous ALMM updates increased project costs by about 20%, and similar impacts may follow with cell inclusion. However, the long-term outlook could be positive, with enhanced domestic production strengthening India’s energy security and stabilizing costs. Naveen Khandelwal, CEO of BrightNight India, echoes this resilience, despite short-term price pressures.
India’s solar manufacturing has grown significantly, with 65 GW in modules, though cell capacity remains below 10 GW. ICRA VP Vikram V. believes aligning local cell production with ALMM standards could benefit domestic manufacturers, though initial capital costs may increase.
The MNRE is soliciting industry feedback, with a final decision expected following stakeholder reviews.