Domestic Solar Manufacturing Bodies Get Behind ALMM

Highlights :

  • Even as speculation of granting exemptions to specific projects from ALMM requirements gathers pace, domestic solar manufacturer bodies have put their weight behind the ALMM list yet again.
  • The issue is a tricky one for the government to balance out, as domestic capacity catches up with demand, but finds large developers being wary ostensibly on price and quality concerns.
Domestic Solar Manufacturing Bodies Get Behind ALMM Waaree Energies, Vikram Solar in Co-Branding Agreements Under ALMM

Speculation about the government granting exemption, or ‘grandfathering’ certain projects bid out till early 2021 from complying with the Approved List of Module Manufacturers (ALMM) stipulation, has been gaining pace. With some noted sources going as far as predicting it, multiple domestic solar manufacturer led bodies have found it opportune to put their weight behind the ALMM stipulation yet again, and make the case for no exemptions in the bargain. However, it is a reality too that many projects in the pipeline as they stand today are unviable at existing market prices. The good news? Prices could be softening, which might change the picture in the future. The question is, how long will that take.

Ashwini Sehgal, President and CEO at Alpex Solar

Ashwini Sehgal, President and CEO at Alpex Solar

Hitesh Doshi, Chairman at WAAREE Group

Hitesh Doshi, Chairman at WAAREE Group

Manish Gupta, Director Insolation Energy

Manish Gupta, Director at Insolation Energy

The Indian domestic solar ALMM (The Approved List of Models and Manufacturers) implementation is a key aspect to protect investments of ~7.2 billion (INR 53,773 crore) that the country would require over the next 3-4 years to indigenise the solar manufacturing value chain. Currently, the ALMM list features 83 manufacturers with total capacity close to 20 GW.

With continued focus on domestic manufacturing, Indian solar industry is expected to grow 4X by 2025, with domestic capacity by end of 2023 expected to hit almost 25 GW.

Ashwini Sehgal, President, ISMA (Indian Solar Manufacturers Association), said, “ALMM implementation was a reaffirmation of the government’s inclination towards bringing India’s economic growth, job creation, and fulfilling net zero target through solar. Improving domestic solar manufacturing is expected to bring $30 billion (INR 2.3 lakh crore) to domestic manufacturers in revenues by 2030 (by selling 150 GW at INR 15/Wp). However, delaying ALMM implementation would certainly impact capacity expansion investments made by domestic manufacturers in a negative manner, thus slowing progress of realizing Aatmanirbhar Bharat.”

Hitesh Doshi, President, AISIA (All India Solar Industries Association), said, “The opportunities for growth are there for India and with growing solar demand it will only bring in more advantage only if we focus on nurturing domestic solar manufacturing. Besides, according to IEA, China holds 80% share of all key manufacturing stages of solar panels in global solar market. China concentrating the supply chains to itself is leading to imbalances and correction is needed to create a solar industry that is resilient to supply side shocks or other crisis. We are confident India can play a larger role with support of favourable and timely implementation of policies such as ALMM.”

Manish Gupta, President, NIMMA (The North India Module Manufacturer Association) further added, “We are wholeheartedly appreciative of Government of India’s policy reformations and development of favourable environment for Indian solar growth. With timely implementation of ALMM, our country stands to claim a much higher position in leading national and global solar transition through continuous manufacturing capacity expansion and R&D. We appeal to you for a swift resolution in the matter, prioritizing domestic solar manufacturing sector, which is aligned to serve net zero targets and clean energy mission.”

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Prasanna Singh

Prasanna has been a media professional for over 20 years. He is the Group Editor of Saur Energy International