Page 46 - Policy Economic Report - December 2024

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framework, marking a major step towards boosting domestic manufacturing and fostering self-reliance in
India’s renewable energy industry.

Introduction of ALMM List-II for Solar PV Cells

The introduction of List-II, is a response to the country’s rapidly growing solar manufacturing capabilities.
Until now, the absence of List-II was due to a limited domestic supply of solar cells. However, with
substantial growth in India’s solar cell production capacity anticipated over the next year, this amendment
is poised to change the dynamics of the industry. From 1st June 2026, all solar PV modules used in projects
– including government-backed schemes, net-metering projects, and open access renewable energy
initiatives – will be required to source their solar cells from ALMM List-II, ensuring quality and reliability
in solar PV cells used in India’s energy infrastructure.

Exemptions for Existing Projects

For projects that have already been bid out but whose last date of bid submission is before the issuance
of this order, an exemption will apply, allowing them to proceed without the requirement to use solar PV
cells from List-II, even if their commissioning date is post-1st June 2026. However, for all future bids, the
requirement to source both solar PV modules and cells from the respective ALMM lists will be mandatory,
marking a decisive shift towards quality assurance and sustainability in India’s solar power sector.

Economic and Environmental Benefits

This policy enhancement is expected to have profound economic and environmental benefits. By
mandating the use of solar PV cells which will be included in the ALMM List-II following a rigorous
procedure to verify the quality and reliability, the government aims to foster a robust domestic solar PV
supply chain, reduce the carbon footprint associated with solar module imports, and bolster India’s energy
security. This move aligns with India’s broader goal of achieving 500 GW of non-fossil fuel-based power
capacity by 2030 and making substantial strides in its commitment to clean energy.

Stimulating Domestic Manufacturing

The amendment will not only strengthen India’s position as a global leader in renewable energy but will
also accelerate the growth of India’s solar manufacturing sector. The increased demand for solar PV cells
in India is expected to stimulate innovation, create new job opportunities, and attract investments in high-
tech manufacturing. It will also enhance the overall quality and reliability of solar products used in India,
ensuring that projects meet the highest standards.

Promoting Thin-Film Solar Technology Innovation

The government has also recognized the role of thin-film solar technology in India’s renewable energy
future. Under the new amendments, thin-film solar modules manufactured in integrated solar PV module
manufacturing units will be considered in compliance with the requirement to use solar PV cells from List-
II, further driving technological innovation and diversification within the sector.

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