Renewable Ministry to implement its order on solar power approvals from June
New Delhi, May 26: Ending months of uncertainty, the Ministry of New and Renewable Energy (MNRE) ruled out a blanket extension of the Approved List of Models and Manufacturers (ALMM) List-II deadline beyond June 1, 2026.
It has, however, created a limited relief mechanism for renewable energy projects that have already made significant progress on-ground.
In the latest Office memorandum issued by MNRE yesterday, all net-metering, open access and renewable energy projects commissioned on or after June 1, 2026, will mandatorily have to source solar PV modules from ALMM List-I and solar PV cells from ALMM List-II.
The ministry has maintained that policy stability is essential for ensuring long-term investor confidence in India’s solar manufacturing sector.
Renewable energy developers had sought a deadline extension, citing concerns over limited domestic solar cell availability, higher procurement costs and execution delays.
Developers also flagged risks for projects where procurement planning had already begun before the implementation timeline was firmly established. Rising costs, supply-side constraints and execution challenges had raised concerns around commissioning delays and project viability.
What Is ALMM?
The ALMM framework is a policy under which only approved manufacturers can supply solar equipment to eligible projects.
It was introduced to reduce India’s dependence on imported solar equipment and support domestic manufacturing.
ALMM List-I covers solar modules, while List-II applies to solar photovoltaic (PV) cells.
Case-By-Case Exemptions
While rejecting a broad extension, MNRE has created a case-by-case exemption mechanism for projects that can demonstrate substantial progress before June 1.
The ministry said no blanket extension of the ALMM deadline would be granted. However, projects may be considered for appropriate time extensions after an objective assessment of supporting information and documentary proof submitted by developers.
Under Category I, projects where 100 per cent of required solar PV modules had already been installed at the site before June 1, 2026, but commissioning remained incomplete, may qualify for exemption. Developers will need certification or approval from the relevant Electrical Inspectorate confirming module installation, including DC-side installations.
Under Category II, projects where “effective steps” had been taken toward project grounding but commissioning had not occurred before June 1 may also qualify.
To be eligible, developers must demonstrate several milestones achieved before the deadline, including:
1.Possession of at least 75 per cent of project land through ownership, lease or government allotment
2. Financial closure supported by sanction letters, loan agreements, board resolutions or related documentation
3. In-principle connectivity approval granted before June 1
4. Approval of electrical drawings, including single-line diagrams, from the Electrical Inspectorate
5. Proof that solar PV modules had arrived at the project site, or that more than 50 per cent installation had already been completed.
Developers must submit claims and supporting documentation through a portal developed by the National Institute of Solar Energy (NISE) by June 30, 2026. Applications will be assessed by an expert committee constituted by MNRE, with field inspections to be conducted where necessary.
Implications for Manufacturers
The decision is expected to provide policy certainty for domestic solar manufacturers by preserving demand visibility and reinforcing confidence in local capacity creation.
A stable ALMM regime could support stronger capacity utilisation and encourage continued investments in domestic solar cell manufacturing, particularly as developers will increasingly be required to source equipment locally.
Implications for Developers
For renewable energy developers, the implications are more mixed.
The move may increase execution costs and create commissioning risks for projects dependent on imported solar components or projects bid at lower tariffs. Developers have also expressed concerns over margin pressures and timeline disruptions if domestic supply remains constrained.
At the same time, the exemption framework offers relief for projects that have already made substantial progress, helping protect investments already made on-ground.
