The Indian government will implement the Approved List of Models and Manufacturers (ALMM) for solar modules in April, Union Minister for Power and new and Renewable Energy RK Singh said, a move that is likely to benefit local producers.
"We have no plan to extend the deferment of the ALMM norms any further. So, ALMM will come into place from April,” Singh told reporters on January 15.
However, he said the ALMM will be implemented with a minor caveat.
“We have received numerous representations from the industry that the wording of the order is restrictive. The wording of the current order states that the ALMM would not apply to any solar project commissioned before March 31, 2024. We are considering changing this to projects for which orders have been placed before March 31, 2024. This is because installation depends on lot of factors such as shipping and other things," the minister said.
This means that while the ALMM will be implemented in April it is unlikely to apply to solar projects for which orders have been placed.
On December 7, Moneycontrol was the first to report about the government's plan to finally implement the ALMM norms in April, a move that is likely to benefit domestic solar module manufacturers.
The ALMM mandate was introduced in 2021 as a non-tariff barrier to boost domestic production by approving the list of indigenous models and manufacturers eligible for solar development projects put out by the government. The mandate was extended to the government’s open-access projects as well. Currently, 79 Indian manufacturers are on the list.
However, in March 2023, the government kept the ALMM in abeyance for a year, saying it would not apply to any solar project commissioned before March 31, 2024. The government said the ALMM mandate was kept in abeyance to boost solar project installations in India, which had suffered sluggish growth, first due to the COVID-19 pandemic and then due to the imposition of basic customs duty.
However, the move hit domestic solar manufacturers as they had to compete with an increased influx of imported solar modules and cells.
Boosted by production-linked incentive (PLI) schemes, India’s domestic solar module manufacturing capacity is expected to reach 50 GW by FY25 and 95-100 GW by 2026. Under the second tranche of the PLI scheme, the green power arms of Reliance Industries, Tata Power Company, and JSW Energy are setting up solar photovoltaic (PV) module manufacturing capacities.
Rating survey
The minister said the government will soon start a survey, to be conducted by a third party, to rank vendors as per their services.
"We will telephonically reach out to all those who have installed solar panels in India so far and seek feedback on their solar installation provider. Based on the findings of the survey, solar panel vendors will be rated," Singh said.
The minister added that the government may consider increasing subsidies for rooftop solar installations, although a final decision is yet to be taken.
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