With India On Track For 45 GW OF Solar In Fy26, SBI Caps Weighs In On ALMM For Wafers

The Ministry of New and Renewable Energy (MNRE), having already introduced the Approved List of Models and Manufacturers (ALMM) for solar modules, is now preparing to extend the framework to solar cells and wafers. This move raises key questions—how will it impact India’s solar manufacturing market, and what could be the most effective ways to implement it? A recent SBI Caps report offers recommendations to ensure the policy delivers maximum benefit for the Indian solar sector.

ALMM For Wafers Needs Regulatory Push 

Building on ALMM-I's success in building a strong domestic module ecosystem pushed the government to propose ALMM-II (for cells) and ALMM-III (for wafers). However, SBI Caps says that current wafer capacities in India remain minimal, with the country still reliant on Chinese imports. This is despite several players having announced wafer/ingot capacities. 

Here are some key measures that solar module manufacturers can expand manufacturing under ALMM-III:

• There must be at least three wafer manufacturing units operating independently without common ownership.
• These three units must have an aggregate wafer-making capacity of 15 GW per annum.
• Ingot manufacturing capacity equivalent to wafer capacity is mandatory for enlistment in ALMM-III.
• Projects exempt from using cells under ALMM-II are automatically exempted from using wafers under ALMM-III.
• Net-metering and open-access RE projects are exempt from ALMM-III, even if they must comply with ALMM-I and ALMM-II.
• Thin-film-based solar PV modules are exempt from ALMM-III.

ALMM-III (for Wafers) Represents the Next Stage

The report stresses  that an ALMM-III (for wafers) represents the next stage of government support for a self-reliant India in solar panels. 

The proposed mandate for at least three independent wafer manufacturers with an aggregate capacity of 15 GW clearly indicates some lessons have been learnt from the experience with the shortages of DCR modules seen between 2023-25.  However, with total solar capacity additions in Fy26 expected to hit 45 GW, and a further 40-45 GW post that, one could argue that even the 15 GW limite miught be on the lower side, as the key producers will use that for internal consumption.   

"With module makers trying to carve out niches for themselves, technology is emerging as a salient feature in their race to build modules exceeding 700 Wp and 23% efficiency. This push is also evident in the increased preponderance of n-type TOPCON and HJT modules," it added. 

The Race For 45 GW Solar In FY26 On

Despite heavy monsoon rains, India’s power demand surged in H1FY26 on the back of robust economic activity, with SBI Caps projecting an even sharper pickup in H2 in its latest report, “Sustainable Growth of Sustainable Energy: A Solar Story.”

Solar energy, particularly within the overall installed renewable energy capacity, has set a new record in FY26 till now. The SBI Caps report stated, “The report highlighted factors contributing to this growth: “Besides fervent awarding from REIAs and states driving utility additions, rooftop and open-access solar are emerging as avenues of effervescence. Over 20% of installed solar capacities now comprise rooftop and off-grid systems, significantly higher than before. Amidst this fertile ground for growth, revised GST norms are another ray of sunshine. The reduction in GST from 12% to 5% will make installation and maintenance cheaper and present an even more compelling case to the consumer.”

The research report also noted, "A net installed capacity of over 20 GW has been added in 5MFY26, of which over 85% comprises solar power. This breakneck pace is expected to continue for the remainder of the fiscal year, and we expect over 45 GW of solar capacity to be added in FY26.”