Solar manufacturers raise concerns over ALMM Phase II deadline

Hubballi: Manufacturers of solar energy products have expressed concern that the Union government’s timeline to implement Phase II of the Approved List of Models and Manufacturers (ALMM) by June 2026 could jeopardise the sector, as the policy is not aligned with current supply chain realities.

Under the Atmanirbhar Bharat initiative, all mega solar projects must use domestically manufactured, ALMM-approved solar cells. However, the industry faces a significant shortfall in domestic photovoltaic cell production needed to meet this requirement.

Industry insiders warn that a shortage of locally made solar cells could delay project execution across several states.

Experts note that while India has made rapid strides in solar capacity addition, domestic manufacturing is yet to catch up. In 2025, the country installed nearly 36.6 GW of solar power—almost three times the 13 GW added in 2022. However, domestic capacity for advanced TOPCon solar cells remains limited to around 10 GW.

Ramesh Shivanna, founding president of the Karnataka Renewable Energy Systems Manufacturers Association (KRESMA), said, “At this pace, India will continue to add 35–40 GW of solar capacity annually. However, sustaining this growth depends on a reliable and cost-competitive supply chain. Currently, there is a supply gap of nearly 25 GW in solar generation using domestically produced cells.”

India used to import solar cells from countries such as Vietnam, Malaysia, Indonesia, Cambodia, Laos, and China, where costs are 40% to 50% lower than those of domestic production.

Industry experts also point out that many Indian manufacturers still depend on Mono-PERC technology, which is gradually becoming obsolete. Transition to more advanced TOPCon technology has been slow due to limited production-linked incentives and issues related to basic customs duty exemptions.

A solar products manufacturer said that extending the deadline by at least a year could help India achieve self-sufficiency and even position itself as an exporter.

Ramesh added that while the Ministry of New and Renewable Energy is taking steps to boost domestic manufacturing, capacity expansion has not kept pace with demand.

“There is a clear mismatch between policy intent and ground realities. Implementing ALMM Phase II without addressing supply constraints could slow project execution and increase costs,” he said.

Stakeholders are also concerned about the financial impact, as higher domestic cell prices could affect project viability, particularly for large solar parks and government tenders. Developers may be forced to delay projects or pass on additional costs to consumers.

Union Minister for New and Renewable Energy Pralhad Joshi, defending the policy, said self-reliance would be difficult without adhering to the timeline.

“India cannot remain dependent on other countries for solar cell production. Even during Phase I of ALMM, timelines were met. I am confident manufacturers will rise to the occasion,” he said.

He added that India is already producing 27 GW of solar power using domestically manufactured cells.