Home › Policies & Regulations ›ALMM-II Extension Offers Relief to Solar Developers, Buys Time for Domestic Cell Manufacturing
ALMM-II Extension Offers Relief to Solar Developers, Buys Time for Domestic Cell Manufacturing
Solar industry stakeholders have termed the Ministry of New and Renewable Energy's six-month extension of the ALMM List-II exemption for net metering and open access projects a timely relief, estimating it could help commission up to 10 GW of pending projects while giving domestic cell manufacturing time to scale up.
July 21, 2026. By Mrinmoy Dey
The Ministry of New and Renewable Energy (MNRE) has, a few days back, extended the exemption from ALMM II requirements of using domestically manufactured solar cells for net metering and open access solar projects till December 31, 2026.
This came as a much-needed relief for the developers/EPC players as well as manufacturers of solar panels. Commenting on the impact of this extension, Ashok Kumar Singh, an independent solar consultant with vast experience in the solar manufacturing sector, opined, “The six-month extension of the ALMM implementation deadline for net metering and open access projects will provide much-needed relief to solar parks and the large pipeline of pending C&I projects. Many industries had already secured or applied for loans to install solar projects, and this extension will enable them to utilise those sanctioned funds and complete project execution. I estimate that nearly 10 GW of projects currently in the pipeline, being handled by over 100 EPC players, could now be commissioned by December because of this extension.”
Simarpreet Singh, ED and CEO, Hartek Power, remarked, “The extension of the ALMM List-II exemption till December 2026 gives net metering and open access projects the breathing room they needed. Our experience with ALMM List-I showed that a limited approved-vendor base creates demand-supply asymmetries at scale. Companies at both ends of the value chain face procurement pressure. The fallout leads to multi-week delays of projects.”
He further added, “The six months to implementation provide an adequate runway, provided enlisted cell capacity ramps up as projected and pricing stabilises through competition among approved manufacturers. The policy direction is right; execution discipline on both sides will eventually decide the outcome.
Manan Thakkar, Co-Founder and Managing Director at Prozeal Green Energy and Co-Convener of Renewable Energy Panel at CII – Gujarat, said, “This extension permits the import of solar cells until December 31, 2026, offering relief to under-commissioned projects. By addressing the limited availability of domestic solar cells, developers can source cost-effective modules globally. This measure is expected to lower project costs, shorten consumer payback periods, and increase savings for commercial and industrial consumers by avoiding the higher upfront costs associated with restricted domestic supply.”
He further added, “While this extension is a positive development, it will not fully address the current demand-supply gap in the sector. As a project developer, we recognise the government’s objectives and are willing to collaborate with domestic module manufacturers where possible. Access to advanced solar cell technologies, such as TOPCON R12, remains essential for industry growth and transition.”
Hanish Gupta, Founder and Managing Director, Sunkind India, asserted that extending the ALMM-II exemption until December 2026 is a practical and timely move. “It gives much-needed breathing room to projects that are already under execution and have been held up by approvals, connectivity, DISCOM processes, or other on-ground challenges. The extension is especially useful for rooftop and net metering projects, where shorter execution timelines make timely commissioning more realistic. For new greenfield open access projects, however, the impact is likely to be limited because these typically require longer lead times for land acquisition, approvals, financing, and construction,” he said.
Piyush Goyal, Co-Founder and CEO, Volks Energie, emphasised that the extension is the right call, and for anyone running EPC it reads as sequencing. “List-II on cells stays the destination. Projects commissioning from January 2027 will source domestic cells, and under List-I modules already do. What the ministry has fixed is the pace. The bottleneck was never modules. It sat in cells, and within cells it sat in TOPCon, where domestic capacity is thin against the module base built around it. On the ground it showed up as stalled commissioning. Cell availability was tight, certification queues were lengthening, and net-metering and open-access projects had few options. A window to December lets those move while List-II capacity catches up.”
He further added, “For standalone module makers, it puts pre-deadline stock back into use. For cell manufacturers scaling lines that take close to two years to stabilise, it keeps the demand signal steady. The direction holds. What changes is that the transition is now buildable.”
This came as a much-needed relief for the developers/EPC players as well as manufacturers of solar panels. Commenting on the impact of this extension, Ashok Kumar Singh, an independent solar consultant with vast experience in the solar manufacturing sector, opined, “The six-month extension of the ALMM implementation deadline for net metering and open access projects will provide much-needed relief to solar parks and the large pipeline of pending C&I projects. Many industries had already secured or applied for loans to install solar projects, and this extension will enable them to utilise those sanctioned funds and complete project execution. I estimate that nearly 10 GW of projects currently in the pipeline, being handled by over 100 EPC players, could now be commissioned by December because of this extension.”
Simarpreet Singh, ED and CEO, Hartek Power, remarked, “The extension of the ALMM List-II exemption till December 2026 gives net metering and open access projects the breathing room they needed. Our experience with ALMM List-I showed that a limited approved-vendor base creates demand-supply asymmetries at scale. Companies at both ends of the value chain face procurement pressure. The fallout leads to multi-week delays of projects.”
He further added, “The six months to implementation provide an adequate runway, provided enlisted cell capacity ramps up as projected and pricing stabilises through competition among approved manufacturers. The policy direction is right; execution discipline on both sides will eventually decide the outcome.
Manan Thakkar, Co-Founder and Managing Director at Prozeal Green Energy and Co-Convener of Renewable Energy Panel at CII – Gujarat, said, “This extension permits the import of solar cells until December 31, 2026, offering relief to under-commissioned projects. By addressing the limited availability of domestic solar cells, developers can source cost-effective modules globally. This measure is expected to lower project costs, shorten consumer payback periods, and increase savings for commercial and industrial consumers by avoiding the higher upfront costs associated with restricted domestic supply.”
He further added, “While this extension is a positive development, it will not fully address the current demand-supply gap in the sector. As a project developer, we recognise the government’s objectives and are willing to collaborate with domestic module manufacturers where possible. Access to advanced solar cell technologies, such as TOPCON R12, remains essential for industry growth and transition.”
Hanish Gupta, Founder and Managing Director, Sunkind India, asserted that extending the ALMM-II exemption until December 2026 is a practical and timely move. “It gives much-needed breathing room to projects that are already under execution and have been held up by approvals, connectivity, DISCOM processes, or other on-ground challenges. The extension is especially useful for rooftop and net metering projects, where shorter execution timelines make timely commissioning more realistic. For new greenfield open access projects, however, the impact is likely to be limited because these typically require longer lead times for land acquisition, approvals, financing, and construction,” he said.
Piyush Goyal, Co-Founder and CEO, Volks Energie, emphasised that the extension is the right call, and for anyone running EPC it reads as sequencing. “List-II on cells stays the destination. Projects commissioning from January 2027 will source domestic cells, and under List-I modules already do. What the ministry has fixed is the pace. The bottleneck was never modules. It sat in cells, and within cells it sat in TOPCon, where domestic capacity is thin against the module base built around it. On the ground it showed up as stalled commissioning. Cell availability was tight, certification queues were lengthening, and net-metering and open-access projects had few options. A window to December lets those move while List-II capacity catches up.”
He further added, “For standalone module makers, it puts pre-deadline stock back into use. For cell manufacturers scaling lines that take close to two years to stabilise, it keeps the demand signal steady. The direction holds. What changes is that the transition is now buildable.”
Impact on Project Timelines and Cost
From a cost perspective, this decision should bring some short-term stability. It eases immediate supply-side pressure and gives domestic cell manufacturers a little more time to scale up production, remarked Gupta.
Shrikant Soni, DGM – Business Development, Kalpa Power, said, “The six-month ALMM extension is a welcome and pragmatic step for the Net Metering and Open Access segment, but it should be seen as a transition period rather than a complete solution. From a cost standpoint, we expect the extension to lower overall EPC costs for eligible projects by approximately INR 7,000-8,000 per kWp, depending on configuration and procurement strategy.”
He further added, “That said, the underlying gap remains significant. India has close to 193 GW of ALMM-listed module capacity against roughly 30 GW of domestic cell manufacturing capacity. While manufacturers are ramping up, closing this gap will take sustained effort and time. The industry fully supports the Government's vision of strengthening domestic manufacturing, but the transition would benefit from greater predictability.”
Shrikant Soni, DGM – Business Development, Kalpa Power, said, “The six-month ALMM extension is a welcome and pragmatic step for the Net Metering and Open Access segment, but it should be seen as a transition period rather than a complete solution. From a cost standpoint, we expect the extension to lower overall EPC costs for eligible projects by approximately INR 7,000-8,000 per kWp, depending on configuration and procurement strategy.”
He further added, “That said, the underlying gap remains significant. India has close to 193 GW of ALMM-listed module capacity against roughly 30 GW of domestic cell manufacturing capacity. While manufacturers are ramping up, closing this gap will take sustained effort and time. The industry fully supports the Government's vision of strengthening domestic manufacturing, but the transition would benefit from greater predictability.”
Is the Extension Period Enough for Smoother Transition?
Ashok Kumar Singh remarked that ideally, a longer extension of around 18 months would have been more beneficial. However, given the government's strong focus on promoting domestic manufacturing under the 'Make in India' initiative, a six-month extension is a reasonable compromise.
Gupta opined that while the six-month extension will help improve the availability of domestically manufactured cells, it may not be enough to fully close the demand-supply gap. “Bringing manufacturing capacity online is one part of the challenge; running it consistently at scale is another. That said, we expect the domestic ecosystem to be in a much stronger position by the end of the year,” he said.
“Domestic operational solar cell manufacturing capacity is currently around 18 GW, rather than the 30 GW often cited. By December 2026, I expect operational cell manufacturing capacity to increase to around 30-35 GW, which should broadly align with India's annual domestic demand of 30-40 GW for DCR-linked and government-backed projects. Looking ahead, by the end of the next financial year, domestic cell manufacturing capacity could reach 60-70 GW, which would be more than sufficient to meet the country's DCR requirements,” said Ashok Kumar Singh.
Gupta opined that while the six-month extension will help improve the availability of domestically manufactured cells, it may not be enough to fully close the demand-supply gap. “Bringing manufacturing capacity online is one part of the challenge; running it consistently at scale is another. That said, we expect the domestic ecosystem to be in a much stronger position by the end of the year,” he said.
“Domestic operational solar cell manufacturing capacity is currently around 18 GW, rather than the 30 GW often cited. By December 2026, I expect operational cell manufacturing capacity to increase to around 30-35 GW, which should broadly align with India's annual domestic demand of 30-40 GW for DCR-linked and government-backed projects. Looking ahead, by the end of the next financial year, domestic cell manufacturing capacity could reach 60-70 GW, which would be more than sufficient to meet the country's DCR requirements,” said Ashok Kumar Singh.
The Way Ahead
While net metering projects like rooftop solar projects under PM Surya Ghar Yojna or PM KUSUM projects have relatively shorter installation timeframes, open access projects require a longer timeframe. Thus, a longer-term policy visibility will boost developer confidence.
“Since open access projects typically take 6-8 months from concept to commissioning, a clear roadmap with at least 12 months of visibility, backed by a phased transition mechanism, would help developers, manufacturers, and consumers plan investments with confidence — and ultimately accelerate both renewable adoption and India's solar manufacturing ecosystem,” remarked Soni.
Thakkar added, “To support effective implementation, we encourage a proactive consultative approach among industry bodies, module manufacturers, and developers to ensure transparency and reduce ambiguity. The MNRE’s continued commitment to advancing renewable energy, particularly solar and battery energy storage systems (BESS), is commendable. This regulatory clarity will enable investors and companies to accelerate the adoption of renewable energy solutions.”
Talking about a smoother transition to ALMM-II, Simarpreet Singh remarked, “The early and transparent visibility of List-II capacity against demand, faster enlistment of qualified cell manufacturers through streamlined audits, and developers engaging suppliers earlier in the project cycle with realistic lead-time planning will be a transformational next step. ALMM has been a catalyst for quality and self-reliance in India’s solar industry; sequencing List-II with the same pragmatism will keep that momentum intact.”
Gupta added, “Looking ahead, a phased transition backed by regular reviews of domestic manufacturing capacity would help the industry plan with greater confidence. It would also support the growth of India’s manufacturing ecosystem without slowing down the pace of solar deployment.”
“Since open access projects typically take 6-8 months from concept to commissioning, a clear roadmap with at least 12 months of visibility, backed by a phased transition mechanism, would help developers, manufacturers, and consumers plan investments with confidence — and ultimately accelerate both renewable adoption and India's solar manufacturing ecosystem,” remarked Soni.
Thakkar added, “To support effective implementation, we encourage a proactive consultative approach among industry bodies, module manufacturers, and developers to ensure transparency and reduce ambiguity. The MNRE’s continued commitment to advancing renewable energy, particularly solar and battery energy storage systems (BESS), is commendable. This regulatory clarity will enable investors and companies to accelerate the adoption of renewable energy solutions.”
Talking about a smoother transition to ALMM-II, Simarpreet Singh remarked, “The early and transparent visibility of List-II capacity against demand, faster enlistment of qualified cell manufacturers through streamlined audits, and developers engaging suppliers earlier in the project cycle with realistic lead-time planning will be a transformational next step. ALMM has been a catalyst for quality and self-reliance in India’s solar industry; sequencing List-II with the same pragmatism will keep that momentum intact.”
Gupta added, “Looking ahead, a phased transition backed by regular reviews of domestic manufacturing capacity would help the industry plan with greater confidence. It would also support the growth of India’s manufacturing ecosystem without slowing down the pace of solar deployment.”
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