MNRE Clarifies ALMM Exemptions for Net Metering & Captive Use

MNRE Clarifies ALMM Exemptions for Net Metering & Captive Use

The Ministry of New and Renewable Energy (MNRE) has issued a latest clarification regarding the scope of exemptions under the Approved List of Models and Manufacturers (ALMM) for various types of solar power projects.

In an office memorandum, the ministry responded to two key queries related to the applicability of ALMM for Net-Billing, Virtual Net Metering, Group Net Metering, and behind-the-meter captive solar installations. This comes in the wake of the planned imposition of ALMM-II for solar cells from June 2026 and the scope of ALMM (for both solar modules and solar cells).

Projects Before June 1, 2026

The ministry confirmed that projects commissioned before June 1, 2026, under these models will be treated on par with conventional net metering schemes for the purposes of ALMM compliance.

“Net-Billing, Virtual Net Metering and Group Net Metering are to be treated at par with provisions of Net-Metering for the purpose of applicability of ALMM,” the memorandum stated. It further explained, “as the Virtual Net Metering and Group Net Metering are models of Net-Metering covering a group of different consumers of same category or same consumer with more than one service connections respectively and Net-Billing is hybrid of Net-Metering and Gross Metering.”

Flexibility For Developers

This provides continued flexibility for developers and consumers implementing distributed solar energy systems, especially in urban and group consumer settings.

However, the MNRE has reiterated its position on behind-the-meter solar systems used for captive consumption by government bodies or public sector enterprises.

“The clarification issued on 07.10.2022 (stating that the amendment issued vide O.M. dated 13.01.2022 read with O.M. dated 28.03.2022, shall not be applicable to behind-the-meter solar power plants solely used for captive consumption by a consumer or group of consumers) does not provide any exemption from ALMM to behind-the-meter connections for captive consumption of government entities or public sector enterprises,” the ministry noted.

The clarification aims to reinforce equipment quality standards under ALMM while allowing operational ease for specific consumer categories within net metering frameworks.