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Posted 11 Dec 2024

2 min read

The amendment to the Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) Order, 2019 aimed at boosting domestic solar manufacturing.

Key Highlights of Amendment:            

  • Introduction of ALMM List-II (Solar PV Cells):  All solar PV modules used in government-backed projects, net-metering projects, & open-access renewable energy initiatives must source their solar cells from ALMM List-II. 
    • List I under ALMM framework was issued in 2021 mandating to source PV modules from models & manufacturers included in ALMM List I. 
  • Exemption: Projects that have already been awarded/completed their bidding process before the issuance of this order.
  • Promoting Technology Innovation: Thin-film solar modules manufactured in integrated solar PV module manufacturing units will be considered in compliance with requirement to use solar PV cells from List-II.
  • Implementation: From 1st June 2026

Challenges for India’s solar Manufacturing Sector: 

  • Inadequate manufacturing capacity: India imports solar equipment from China (62%), Vietnam, Malaysia etc.
  • Limited access to affordable technology for mining & processing of critical minerals hampers solar cell & module production.
  • Other: Low R&D, difficulties of sourcing of raw materials, skilled labour shortage etc.

Initiatives Promoting Domestic Solar Manufacturing

  • Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules.
  • Scheme for “Development of Solar Parks and Ultra Mega Solar Power Projects” extended up to FY2025-26.
  • Foreign Direct Investment (FDI) up to 100 percent under the automatic route.
  • Other: Domestic Content Requirement (DCR), imposition of Basic Customs Duty on import of solar PV cells & modules.
  • Tags :
  • ALMM Order 2019
  • Domestic Solar Manufacturing
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