The Ministry of New and Renewable Energy (MNRE) is set to overhaul the Approved List of Models and Manufacturers (ALMM) for the solar segment.
The proposed changes mandate a substantial increase in the minimum efficiency standards for solar modules and confirm the use of domestically produced solar cells in future government-backed projects. The move signals a major policy push to upgrade the quality and enhance the self-reliance of India’s booming solar sector.
The dual objectives of the revision are clear: to phase out low-efficiency and obsolete technology and to strengthen the domestic manufacturing ecosystem to match global technological trends.
Phased hike in efficiency standards:
The most significant immediate change for module manufacturers is the rigorous, phased increase in minimum efficiency thresholds under the ALMM List-I. This is intended to ensure that India’s solar capacity addition uses only high-quality, commercially relevant modules.
The new efficiency requirements are slated to take effect in two stages, beginning on January 1, 2027, and tightening further from January 1, 2028.
Utility-Scale Modules: For standard crystalline silicon (c-Si) modules used in large-scale utility projects, the minimum efficiency is proposed to increase from the current 20.0% to 21.0% in 2027 and a competitive 21.5% by 2028.
Other Applications: Similarly, modules used in rooftop, solar pumping, and off-grid distributed applications will see comparable stepped increases, forcing manufacturers to modernize production lines quickly.
Modules currently enlisted in the ALMM that fail to meet these revised thresholds will be removed from the list once the new standards are implemented, pressuring domestic and international suppliers alike to adopt advanced technologies like PERC, TOPCon, and heterojunction (HJT) cells.
Mandatory domestic sourcing for cells:
Reinforcing the government’s Aatmanirbhar Bharat goal, the mandate requiring the compulsory use of ALMM-listed solar PV cells (List-II) for new projects remains a cornerstone of the policy.
The mandate, which largely applies to projects commissioned from June 1, 2026, onwards, will ensure that the solar components are sourced from approved domestic manufacturers. While the focus has primarily been on solar cells, the inclusion of wafers (the core raw material) in future domestic content requirements is a strong consideration, pushing for greater vertical integration and reducing reliance on imports at every stage of the supply chain.
By mandating the use of domestically manufactured cells, the MNRE aims to stabilize the local supply chain and accelerate the massive capacity expansion currently underway, supported by schemes like the production-linked incentive (PLI), according to an MNRE statement.
Industry impact and outlook:
The overhaul of the ALMM, which acts as a stringent quality control measure, is expected to have far-reaching implications for:
Manufacturers: Domestic firms are required to invest heavily in modernizing their facilities to produce cutting-edge, high-efficiency products. This will enhance their global competitiveness but requires significant capital expenditure.
Project Developers: While compliance with higher standards may lead to slightly increased upfront module costs, the long-term benefit is a guaranteed higher energy yield (MWh/acre) and improved project reliability over the lifespan of the solar plant.
The Sector: The move cements India’s reputation as a market prioritizing both quantity and quality in its massive clean energy transition, helping the nation meet its ambitious climate goals.
The MNRE has released the draft order for stakeholder consultation, inviting comments and suggestions before the final implementation.
