India’s solar policy gets a ‘leonine’ gearshift

The Union Ministry of New and Renewable Energy (MNRE) has expanded the ALMM Order to introduce ALMM List-III for Ingots and Wafers, which will take effect from 1 June 2028, a PIB release states.

Suitable grandfathering provisions have been built in to protect projects already in the pipeline. The current order of MNRE extends mandatory sourcing requirements from ALMM lists, already in place for modules and cells, one step further up the solar supply chain to include the ingots and wafers, which currently remains heavily import-dependent.

The Minister concerned, Pralhad Joshi, said that it was a decisive step towards strengthening India’s solar manufacturing ecosystem and added that the move would boost domestic production, enhance supply chain resilience, reduce import dependence, and ensure higher quality standards across the solar value chain.

Key Provisions are as follows:

• Effective Date: 1 June 2028 — the date from which all projects must use ALMM-listed wafers including net metering/open access projects.
• Cut-Off Date: Seven days after the initial list of ALMM List-III for wafers, is published. Bids submitted under Section 63 route, after this date must mandatorily specify use of ALMM List III compliant wafers.
• Threshold for issuing the initial list: At least three independent manufacturing units (not under common ownership or control) with a combined capacity of 15 GW, ensuring the list is issued only when this minimum domestic supply is available.
• Mandatory ingot capacity: Manufacturers seeking enlistment in ALMM List-III for wafers must also have equivalent ingot manufacturing capacity, promoting upstream integration for ingots.
• Module list integrity: Effective Date onwards, ALMM List-I (Solar PV modules) will include only such modules which are manufactured using ALMM-listed cells and wafers. Separate lists will be maintained for grandfathered projects to avoid disruption.
• DCR provisions: This order does not dilute or override any Domestic Content Requirement (DCR) provisions under the existing MNRE schemes.

Expected Benefits

Wafers are the critical intermediate stage between polysilicon and solar cells. India currently has limited domestic wafer manufacturing capacity and relies substantially on imports.

The introduction of ALMM List-III is expected to:

• Drive investment into ingot and wafer manufacturing facilities in India;
• Improve supply chain security and reduce vulnerability to import disruptions;
• Ensure quality and traceability of solar components all the way from wafer to module;
• Create skilled employment in upstream solar manufacturing.

This expansion of ALMM represents an important step towards Atmanirbhar Bharat and the country’s commitment to achieving 500 GW of non-fossil fuel capacity by 2030.

Background

India’s Approved List of Models and Manufacturers (ALMM) Order 2019 is a quality-and-reliability framework that ensures solar equipment used in the country’s solar projects meet the domestic manufacturing standards.

It applies for projects awarded through competitive bidding under Section 63 of the Electricity Act 2003 and for net-metering or open-access projects.

Since ALMM was introduced, domestic solar manufacturing has expanded significantly. ALMM List-I (solar PV modules) has grown from 8.2 GW in 2021 to around 172 GW currently. ALMM List-II (solar PV cells), introduced more recently, has already reached 27 GW within seven months, demonstrating the framework’s effectiveness in stimulating domestic investment.