From June 1, 2026, India has implemented a significant policy measure aimed at boosting domestic manufacturing in the renewable energy sector. Under the revised Approved List of Models and Manufacturers (ALMM) framework of the Ministry of New and Renewable Energy (MNRE), solar projects covered under the scheme must now use domestically manufactured solar photovoltaic (PV) cells approved under ALMM List-II, in addition to solar modules listed under ALMM List-I.
The move marks a crucial milestone in India’s journey towards self-reliance in renewable energy manufacturing and is expected to reduce dependence on imported solar components, particularly from overseas suppliers.
In simple terms, a solar cell is the smallest unit of a solar power system. It is a semiconductor device, usually made of silicon that converts sunlight directly into electricity.
A solar module is a group of solar cells connected together and enclosed in a protective frame and glass covering.
A solar panel is one or more solar modules assembled as a single unit for installation and power generation. In everyday usage, the terms solar module and solar panel are often used interchangeably.
An easy way to understand the difference is through a building analogy. A solar cell is like a single brick, the basic unit that performs the essential function of generating electricity. Multiple solar cells are connected together to form a solar module, just as many bricks are assembled to build a wall. One or more solar modules then make up a solar panel, which can be compared to a finished section of a building ready for use.
The ALMM framework was introduced to ensure quality standards and promote indigenous manufacturing of solar equipment. While the use of approved solar modules under ALMM List-I had already been mandatory for specified projects, the latest regulation extends this requirement to solar cells as well.
With effect from June 1, 2026:
India has made remarkable progress in expanding its solar power generation capacity over the past decade. However, a substantial portion of solar cells used in domestic projects has traditionally been imported particularly from China. This dependence exposes the sector to supply-chain disruptions, foreign exchange fluctuations, and geopolitical uncertainties.
The new mandate seeks to:
The initiative also aligns with the Government of India’s broader vision of “Atmanirbhar Bharat” and the goal of establishing India as a global manufacturing hub for clean energy technologies.
It has been decided by The Ministry of New and Renewable Energy (N&RE) that no blanket extension of the deadline for applicability of ALMM List-II for solar PV cells beyond 1st June 2026 is required to be provided. However, in order to protect investments already made in the larger public interest, certain Net-Metering, Open Access and Renewable Energy power projects will be considered for appropriate time extension on a case-to-case basis.
The policy has received support from domestic cell manufacturers who view it as a catalyst for capacity expansion and technological advancement. Industry experts believe that assured demand for locally produced cells will encourage further investments and accelerate the development of a robust solar manufacturing ecosystem.
However, there are concerns regarding the current gap between domestic cell manufacturing capacity and the country’s growing solar demand. Industry associations have urged policymakers to closely monitor supply availability and facilitate capacity expansion to ensure a smooth transition. The country’s solar cell manufacturing capacity is estimated at about 27 GW, while yearly solar demand is likely to remain close to 50 GW, highlighting the need for further expansion of domestic cell production.
For residential, commercial, and industrial consumers planning to install rooftop solar systems under net-metering arrangements, the new sourcing requirements may influence equipment selection and project costs. Nevertheless, the long-term benefits of a stronger domestic supply chain and improved product quality are expected to outweigh short-term challenges. Consumers are advised to verify that both solar modules and solar cells used in their installations comply with the applicable ALMM requirements.
India has set ambitious renewable energy targets and aims to become a global leader in clean energy deployment. The mandatory domestic sourcing of solar cells represents a strategic policy intervention designed to create a self-sustaining solar manufacturing ecosystem while supporting the country’s transition towards a greener and more secure energy future. Industry experts expect India’s solar cell manufacturing capacity to rise significantly over the next few years, potentially exceeding 50 GW annually if announced investments materialise on schedule. In that scenario, the current supply gap would gradually narrow, enabling India to meet most of its solar demand through domestic production while reducing reliance on imports.
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