Centre extends non-ALMM sourcing relief for solar projects

The Ministry of New and Renewable Energy (MNRE) has extended a temporary relief for net metering and open access renewable energy projects, allowing them to continue sourcing solar photovoltaic cells from manufacturers not on the Approved List of Models & Manufacturers (ALMM) until December 31, 2026. The decision comes as the administration tries to balance domestic manufacturing goals with the practical needs of project developers.

The ministry made clear there will be no blanket extension of the ALMM List-II requirement for solar PV cells. The mandate for using listed cells took effect on June 1, 2026, and the government is not backing away from that timeline for most projects. For a limited segment — net metering and open access renewable power projects — the agency widened the exemption window by roughly seven months beyond the previous May 31 deadline.

Relief for net metering and open access projects

“However, a limited window is being provided for Net-metering projects and Open Access RE power projects, whereby such projects can now commission with exemption of ALMM List-II (for solar PV cells), till December 31, 2026,” officials said. Earlier this relief was available only until that date.

They emphasized that the move is meant to help standalone solar PV module manufacturers protect investments they have already made, particularly in the form of inventories. By creating additional demand, the government hopes to give these manufacturers more time to shift their sourcing toward ALMM List-II enlisted solar cell producers, whose capacity is steadily increasing.

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The adjustment is substantial. The decision followed what the ministry described as “detailed deliberations with various stakeholders in the solar industry” to ensure a smooth transition. The government remains committed to making India self-reliant — Atmanirbhar — in solar PV manufacturing and to establishing the country as a major player in the global value chain.

Setting policy targets is one challenge, but preparing the domestic supply chain to meet them is another. The extension reflects a recognition that the build-out of ALMM-compliant solar cell capacity is still ramping up. A hard cutoff risked choking off smaller projects and disrupting the distributed generation market — a segment that includes rooftop solar and small commercial installations.

Separately, the agency last week extended the deadline for renewable power project developers to submit applications for exemption from the ALMM List-II requirement.

The new cut-off is July 23, 2026.

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Developers who have not yet applied can now use the portal run by the National Institute of Solar Energy (NISE) to submit their claims electronically. Officials said the portal was reopened in response to requests, giving stragglers a few extra weeks beyond the original June 30 closure date.

On May 25, the ministry had clarified that there would be no extension of the ALMM list itself, but to protect investments already made “in the public interest,” it allowed certain net metering, open access and renewable energy power projects to be considered on a case-by-case basis. That case-by-case process is now being handled through the reopened portal.

Domestic manufacturing push shows early results

The ALMM mandate for solar PV cells has already boosted domestic production. According to analysts, 5 gigawatts (GW) of solar cell manufacturing capacity was added during the January-March 2026 quarter. The 5 GW addition marks a significant ramp-up, though the pace must keep up with demand as the exemption window closes at the end of the year.

The government’s broader strategy is to force the market toward domestically sourced cells while giving pockets of the industry — particularly smaller distributed-generation projects — enough breathing room to adapt. Whether that balance holds will depend on how quickly the ALMM-listed cell makers can scale up their output and whether developers can secure supply in time.