Solar module makers will soon have to follow 'Make in India' trajectory: RK Singh

The minister said the trajectory would first mandate module manufacturers to include 'Made in India' cells in a year or two. The second stage of the mandate will include a mandate of having only 'Made in India' wafers and ingots for a manufacturer to be eligible in the ALMM. At a later stage, the mandate for the indigenisation of polysilicon would be brought in

Union Minister for Power and New and Renewable Energy RK Singh on October 20 directed officials to prepare a trajectory for manufacturers for complete indigenisation of solar modules in India spread over a period of 2-3 years.

"We are going to make the approved list of models and manufacturers (ALMM) norms more stringent. We will give a trajectory for the indigenisation of solar modules. We have to reach a point where manufacturers can no longer claim themselves as a 'Made in India' brand if they import most of their components," Singh said at the launch of India's first standard and labelling programme for solar photovoltaic (PV) modules.

The direction comes after Moneycontrol on October 17 reported how Indian solar manufacturers are currently being forced to export as developers prefer imported modules due to the ALMM norm being kept in abeyance till March 2024.

The minister said the trajectory would first mandate module manufacturers to include 'Made in India' cells in a year or two. The second stage of the mandate will include a mandate of having only 'Made in India' wafers and ingots for a manufacturer to be eligible in the ALMM. At a later stage, the mandate for the indigenisation of polysilicon would be brought in.

However, the final trajectory has not been drafted yet as the directions were recently issued by the minister, officials said.

In March, the government kept the ALMM in abeyance for a year stating that it would not apply to any solar project commissioned before March 31, 2024. The move aimed to boost solar project installations in India, which had suffered sluggish growth, first due to the Covid-19 pandemic and then due to the BCD.

However, the move hit domestic solar manufacturers as they now had to compete with the increased influx of imported solar modules and cells.

ALMM is a non-tariff barrier designed to control which solar makers are allowed to enter the Indian market. The ministry recently also made changes to the ALMM norms and allowed only those firms to participate, which had a minimum efficiency of 19 percent. The idea of the rule was to weed out outdated solar modules which are not based on the latest technology and are lower in efficiency.

Boosted by the production-linked incentive (PLI) schemes, India’s domestic solar module manufacturing capacity has crossed the 40 GW mark and is expected to reach 50 GW by next year and 95-100 GW by 2026.

Like home appliances, consumers will soon be able to choose solar panels with higher efficiency under the government's star rating programme for solar photovoltaic modules, Singh launched the initiative on October 20.

The standards will provide ratings from 1-5 stars on the basis of the efficiency of modules. Created by the Bureau of Energy Efficiency (BEE), it is the first time that the organisation has introduced such standards in power generation products. Otherwise, all energy efficiency standards in India so far have been on products that consume electricity such as air conditioners, fridges, televisions and so on.

The ratings are expected to help consumers choose the best of the panels while getting solar installations from vendors. The government is hoping this would boost its rooftop solar programme which has seen a tepid response until now.

"Like the appliances where there are star ratings you know which appliance is better in terms of energy efficiency. Similarly, now the consumer will not be at the mercy of the seller for solar installations. By checking the star ratings one can select the more efficient panels," the minister said.

The programme is voluntary for the first two years and will be made mandatory after that, Singh said. All the panel manufacturers will have to get registered under the programme to get their products rated.

The star labelling scheme prepared by BEE for PV modules is from January 1, 2024, till December 31, 2025.