The Government of India is set to implement amendment to the Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) Order, 2019. This change will take effect on 1st June 2026. The new ALMM List-II will require all solar photovoltaic (PV) modules used in various projects to source their solar cells from this list. This move aims to enhance domestic manufacturing and self-reliance in the renewable energy sector.
Introduction of ALMM List-II
ALMM List-II is a response to India’s growing solar manufacturing capabilities. Previously, the absence of this list hindered the domestic supply of solar cells. The anticipated growth in solar cell production capacity is expected to shift industry dynamics. From June 2026, all solar PV modules must comply with this sourcing requirement. This includes government-backed schemes and open access renewable energy initiatives.
Exemptions for Existing Projects
Projects that have already submitted bids before the new order will be exempt from the List-II sourcing requirement. This exemption allows existing projects to proceed without using solar PV cells from List-II, even if they are commissioned after 1st June 2026. Future bids, however, will be required to adhere strictly to this sourcing mandate.
Economic and Environmental Benefits
The amendment is poised to deliver economic and environmental advantages. By ensuring that only high-quality solar PV cells from List-II are used, the government aims to create a robust domestic supply chain. This will reduce carbon emissions associated with imports and enhance energy security. The initiative aligns with India’s goal of achieving 500 GW of non-fossil fuel-based power capacity by 2030.
Stimulating Domestic Manufacturing
The new policy is expected to boost India’s position as a leader in renewable energy. It will stimulate the solar manufacturing sector by increasing demand for solar PV cells. This demand is anticipated to drive innovation, create jobs, and attract investments in high-tech manufacturing. The overall quality and reliability of solar products are also expected to improve.
Promoting Thin-Film Solar Technology
The government acknowledges the importance of thin-film solar technology in its renewable energy strategy. Under the new amendments, thin-film solar modules produced in integrated manufacturing units will meet the List-II requirements. This promotes technological innovation and diversification within the solar sector.
Future Guidelines and Compliance
The Ministry of New and Renewable Energy (MNRE) will release detailed procedural guidelines for the enlistment of solar PV cells under ALMM List-II. This aims to simplify compliance for manufacturers and project developers. By prioritising domestic manufacturing, the amendment sets a solid foundation for India’s clean energy future.
Commitment to Renewable Energy
The amendment reflects the government’s commitment to advancing India’s renewable energy agenda. It aims to encourage sustainable development and contribute to climate goals. With this initiative, India is on track to enhance energy independence and emerge as a global hub for solar energy innovation.
Questions for UPSC:
- Critically analyse the implications of the ALMM List-II for India’s renewable energy sector.
- What are the potential economic impacts of increased domestic solar cell manufacturing in India? Explain.
- What is the significance of thin-film solar technology in the context of India’s energy goals? Discuss.
- With suitable examples, explain the role of government policy in promoting renewable energy innovations in India.
Answer Hints:
1. Critically analyse the implications of the ALMM List-II for India’s renewable energy sector.
- ALMM List-II mandates sourcing solar cells from approved domestic manufacturers, enhancing quality assurance.
- It aims to boost domestic manufacturing, reducing reliance on imports and encouraging self-reliance in the renewable sector.
- This policy is expected to stimulate innovation and job creation within the solar manufacturing industry.
- Exemptions for existing projects ensure a smooth transition without disrupting ongoing developments.
- The requirement aligns with India’s climate goals and the target of achieving 500 GW of non-fossil fuel power by 2030.
2. What are the potential economic impacts of increased domestic solar cell manufacturing in India? Explain.
- Increased domestic manufacturing can lead to job creation in the solar industry and related sectors.
- It can reduce the costs associated with importing solar cells, positively impacting project budgets.
- A robust domestic supply chain may attract foreign investments and enhance technological advancements.
- Lower dependency on imports can improve India’s trade balance and energy security.
- It can stimulate regional economic growth, especially in manufacturing hubs across the country.
3. What is the significance of thin-film solar technology in the context of India’s energy goals? Discuss.
- Thin-film technology offers flexibility and lower production costs, making solar energy more accessible.
- It requires less material than traditional solar cells, reducing environmental impact during manufacturing.
- This technology can be integrated into various surfaces, enhancing installation versatility and urban applications.
- Government recognition of thin-film technology promotes innovation and diversification in the energy sector.
- It aligns with India’s goal of increasing renewable energy capacity while supporting sustainable development.
4. With suitable examples, explain the role of government policy in promoting renewable energy innovations in India.
- Policies like the National Solar Mission provide financial incentives, driving the growth of solar installations.
- Subsidies for solar panel manufacturing encourage local production and reduce costs for consumers.
- Regulatory frameworks, such as the ALMM, ensure quality and reliability in renewable energy products.
- Initiatives like the Renewable Energy Purchase Obligation (RPO) mandate utilities to source a certain percentage of energy from renewables.
- Government-backed research and development programs encourage innovation in renewable technologies, such as energy storage solutions.
