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MNRE Eases ALMM Rules for Solar Cell Use, Retains June 2026 Mandate
The Ministry of New and Renewable Energy (MNRE) has issued an amendment to its Approved List of Models and Manufacturers (ALMM) Order for solar photovoltaic (PV) cells, clarifying implementation timelines and exemptions to ease compliance for developers. The Approved List of Cell Manufacturers (ALCM) aims to bring backward integration by mandating ALMM modules to use domestic cells from June 2026.
In a press release dated July 28, 2025, the ministry said that the use of ALMM-listed solar PV cells would be mandatory one month after the publication of the ALMM list for cells, i.e., the Approved List of Cell Manufacturers (ALCM), which is currently in process. It also reaffirmed that the effective date for the mandatory use of ALMM-listed solar PV cells remains June 1, 2026, for projects commissioned on or after that date. This notification follows MNRE's previous notification that the ALMM for solar PV modules would come into effect from April 10, 2021.
The notification reads, “For all projects (including the projects bid out following the Guidelines issued by the Central Government) that are mandated to use solar PV modules from ALMM List-I (for solar PV modules), if the last date of bid submission is on or before the cut-off date and such projects are mandated to use solar PV modules from ALMM List-I (for solar PV modules). These projects will be exempted from using solar PV cells from ALMM List-II (for solar PV cells), even if their date of commissioning is beyond 1st June 2026.”
MNRE's latest notification amended the order dated December 9, 2024, on ALMM for solar PV cells and further clarifies and eases out the procedures for projects bid out by Government agencies, including under Section 63 of the Electricity Act 2003. Through this latest notification, MNRE removes uncertainty for developers and EPC contractors bidding before the ALMM cell list is released.
The amendment aims to ensure that sudden ALMM compliance obligations do not derail ongoing or soon-to-be bid-out projects. It tried to give more time and clarity to the supply chain, especially important as India’s solar cell manufacturing capacity (27 GW) is still ramping up to match module capacity (91 GW).
In turn, the new ALMM clarification tried to bring a relaxed transition to ALCM for government projects, but they are also being restrictive towards Net-metered/Open Access (Private) Projects by applying to projects after the cut-off date. This points towards a tightning of approach towards net-metered and open-access projects and more leniency in transitioning government projects to ALMM compliance. Moreover, this could potentially lead to the cancellation of large government project bids submitted after December 9, 2024, but before the cut-off date. Additionally, the exemption could result in the re-pricing of projects that had factored in ALMM restrictions, or Renewable Energy Implementing Agencies (REIAs) may alternatively invoke a reverse change-in-law claim for such bids.
No Relaxation Within DCR Provisions
The notification elaborated, “There will be no relaxation in Domestic Content Requirement (DCR) provisions, wherever applicable, under MNRE's Schemes/ Programs like Components B&C of PM-KUSUM, PM Surya Ghar: Muft Bijli Yojana, and CPSU Scheme Phase-II. It means that the Cut-off date will remain the same (for this purpose is the date that falls exactly after 1 month of the publication of the ALMM List-II for solar PV cells). For instance, if the ALMM List for Solar Cells is published on August 1st, 2025, then the cut-off date shall be September 1st, 2025.”
MNRE clarified that the draft notification aims to boost the domestic solar manufacturing projects in the country while addressing the issues renewable power developers face in complying with the ALMM for solar PV cells. Additionally, it can expedite solar cell manufacturing and help it to keep pace with the growing module manufacturing capacity in the country.
