The Union government has passed an order to include solar cells in the approved list of models and manufacturers (ALMM) from June 1, 2026 to boost domestic manufacturing.
Solar cells are used to make solar photovoltaic (PV) modules. The decision is significant because until now only solar modules were a part of the ALMM, which meant that manufacturers could import cells and use it to make solar modules in India.
As of now, the ALMM mandate requires solar projects awarded by central nodal agencies and state distribution utilities to source photovoltaic (PV) modules only from India-based manufacturers included in the ALMM list. This came after local manufacturers lobbied for support from the government as they lost market share to cheap imports.
With the latest order, the government’s mandate would also require solar cells to be sourced only from manufacturers included in the ALMM list from June 2026.
“With the installed capacity of solar PV cells in the country expected to increase substantially in the next year, it has been proposed to issue List-II of solar PV cells under ALMM, which shall be effective from June 1, 2026,” the Ministry of New and Renewable Energy (MNRE) said in an order issued on December 9 evening.
The MNRE also clarified that an ALMM order of January 2019 had the provision for the lists specifying models and manufacturers for both modules and cells, but the latter was not issued because the installed capacity of cells in the country was lower than demand.
In September, the ministry had notified draft norms to include solar cells in ALMM, wherein it had proposed for the ALMM on cells to be effective from April 2026. But in the final order issued on December 9, the government has changed the date of implementation to June 1, 2026.
Stricter modules under ALMM
MNRE’s order also stated that once ALMM on solar cells comes into effect from June, 2026, modules that are listed in the ALMM (List I) will have to use the cells mentioned in the new ALMM (List II for cells). It noted that the solar PV module manufacturers who fail to comply with this condition, will be removed from ALMM List-1 (for solar PV modules).
After May 31, 2026, there would be a separate list under ALMM, which would contain such solar PV modules which are enlisted in ALMM but do not use solar PV cells from the list for solar PV cells and these modules would be used for projects with exemptions.
Procedural guidelines for enlistment of models and manufacturers of solar PV cells under ALMM List-II (for Solar PV Cells) will be issued subsequently, the MNRE said.
Solar module capacity
As of June 2024, India’s cumulative solar module manufacturing capacity reached 77 GW, while solar cell capacity totalled nearly 8 GW, according to a report published by Mercom India Research in October. India’s solar module capacity is projected to reach 172 GW, while solar cell capacity will reach nearly 80 GW by 2026, it said.
India has set an ambitious target of reaching 500 GW of non-fossil fuel based power generation capacity by 2030, for which the government is trying to award 50 GW of renewable energy projects every year until FY28.
Industry upbeat on solar cell ALMM
Praveer Sinha, CEO and MD of Tata Power, said that including solar cells in the ALMM will provide a level playing field to Indian manufacturers. This month, Tata Power commissioned its 4.3-GW solar cells manufacturing unit in Tirunelveli, Tamil Nadu, where the company also has a module manufacturing unit of the same capacity.
Amit Paithankar, CEO of Waaree Energies Limited, India’s largest solar module manufacturing company, told Moneycontrol that ALMM for solar cells in India will have a positive impact on the manufacturing of cells in the country. The company has a module capacity of at least 13 GW and it plans to add 6 GW of additional capacity for wafer cells as well as modules.
“The faster we bring in ALMM for cells, the better it will be for India and the Indian solar industry as a whole. About a year ago, the total module manufacturing capacity was hardly 15-17 GW. Last year, we have seen that jump to beyond 54 GW. So, it has been an exponential rise in module manufacturing in the country (with the help of modules ALMM). We believe that an ALMM for cells is going to have a positive effect on the indigenisation of the solar supply chain,” Paithankar said.
In October, Adani Solar, the PV unit of Adani Group, said it will reach integrated solar cell and module production capacity of 10 GW by mid-2026.
Reliance Industries plans to commission its first 20-GW solar giga-factory in Jamnagar, Gujarat, in the current financial year. The factory will produce solar cells, modules, wafers, ingots, polysilicon, and glass.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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