MNRE Extends ALMM Cell Exemption for Net Metering, Open Access Solar Projects

The Ministry of New and Renewable Energy (MNRE) has extended the exemption from the Approved List of Models and Manufacturers (ALMM) for solar cells used in net metering and open access solar projects. The relief, which was set to expire earlier, will now remain in effect until December 31, 2026.

The decision allows developers of these specific project categories to source solar cells and modules from international markets without being restricted to the ALMM list. This move comes weeks after the government initially rolled out the domestic sourcing mandate.

What the Exemption Covers

The ALMM order applies only to solar cells and modules used in net metering rooftop installations and open access solar projects. Utility-scale solar farms remain under the original mandate requiring domestically manufactured components.

Industry sources indicate that the extension is aimed at ensuring project timelines are not disrupted due to insufficient domestic manufacturing capacity. India's solar cell production capacity is still ramping up, and a sudden mandate could stall thousands of megawatts of projects.

Why the Extension Was Needed

The government had notified the ALMM mandate for cells earlier this year, but developers flagged concerns over availability and pricing of Indian-made cells. Open access and net metering projects often operate on thin margins, and any cost escalation can make them unviable.

By extending the exemption, the MNRE has given the domestic manufacturing ecosystem more time to scale up. The ministry has not yet indicated whether the exemption will be extended beyond December 2026.

Impact on Project Pipeline

Analysts tracking the sector note that the exemption covers a significant portion of the country's distributed solar capacity. Open access projects alone account for over 8 GW of planned installations in the current financial year.

Developers can now import cells without facing the risk of disqualification from government schemes. This certainty is expected to keep project financing and construction activity on track.

Government's Stance on Domestic Manufacturing

The government has repeatedly stressed its commitment to building a self-reliant solar manufacturing ecosystem. The Production Linked Incentive (PLI) scheme for solar modules has already attracted major investments.

However, officials acknowledge that a phased approach is necessary. The extension of the ALMM cell exemption is part of that phased strategy, balancing domestic industry goals with immediate deployment targets.

The MNRE has not yet clarified whether the exemption will be extended again after December 31, 2026. Developers are watching closely for any signal on the government's long-term timeline for full ALMM compliance.