MNRE Clarifies ALMM Rules for Govt-Backed Captive Projects

TheMinistry of New and Renewable Energy (MNRE) has now clarified that government and public sector enterprises will be required to use approved solar modules for captive power projects, in a move aimed at tightening compliance with its domestic manufacturing list. The ministry had earlier imposed the provisions of ALMM, enabling it ti act as a 'non-tariff barrier'. The aim was to protect the domestic solar module manufacturers against imports of cheap solar modules from other countries. 

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The recent clarification from the MNRE addresses a key query over whether exemptions from the Approved List of Models and Manufacturers (ALMM) – previously granted to private behind-the-meter solar projects – also applied to state-run entities. The MNRE has now confirmed that such exemptions do not extend to government bodies or public sector undertakings (PSUs). Behind-the-meter connections refer to the meters installed at the consumer site, catering to the on-site generation and consumption, mainly captive solar plants.  

The ministry in the latest notification stated that behind-the-meter solar projects for captive use by government agencies or PSUs must use ALMM-enlisted solar photovoltaic (PV) modules, although they will be exempt from using ALMM-listed solar cells. These rules will take effect for projects commissioned on or after June 1, 2026.

In addition, the ministry said that projects under the RESCO or CAPEX model, where electricity is sold for self-consumption, will be required to use both ALMM-listed solar modules and cells, if commissioned after the same date. Projects commissioned earlier will not need to comply with the cell-related mandate.

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The ALMM was first established in January 2019 to promote the use of domestically approved solar equipment. Subsequent directives in 2022 extended the mandate to include net-metering and open access projects. However, a memorandum issued in October 2022 exempted behind-the-meter captive systems used by general consumers from the requirement – leading to confusion over its application to government-backed initiatives.

The ministry emphasized that government projects have always been subject to ALMM rules, and the exemption for private captive systems was never intended to apply to public sector entities.