Context:
Solar industry associations from Karnataka, Kerala and Tamil Nadu have moved the Karnataka High Court against a Centre’s rule requiring most new solar projects commissioned after June 1, 2026 to use domestically made solar cells.
Explanation:
- ALMM stands for the Approved List of Models and Manufacturers, a compulsory regulatory framework established by India’s Ministry of New and Renewable Energy (MNRE).
- ALMM framework ensures that solar and renewable equipment used in government-backed or subsidized projects meets strict quality, efficiency, and domestic-sourcing standards.
- The ALMM framework classifies components into various sub-lists.
- ALMM List-I covers approved domestic solar module manufacturers, while ALMM List-II covers domestic solar cell manufacturers.
- Solar modules are made by assembling solar cells, which convert sunlight into electricity through the photovoltaic effect.
- India has high solar module capacity, but relatively lower upstream solar cell manufacturing capacity.
- The mandate aims to reduce import dependence, especially on China, and promote Atmanirbhar Bharat, energy security and domestic value addition.
- However, India’s domestic cell capacity is still limited and costlier, which may raise project costs, delay solar projects, and make earlier bids commercially unviable. Industry concerns include price disparity, supply shortage, project delays and tariff impact.
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ALMM List II and India’s Solar Manufacturing Push