MNRE Reduces Efficiency Threshold for Off-Grid Solar Modules Under ALMM

In a major policy shift, the Ministry of New and Renewable Energy (MNRE) has amended the Approved List of Models and Manufacturers (ALMM) Order to lower the minimum efficiency requirements for solar photovoltaic (PV) modules used in off-grid applications.

The decision comes in response to numerous requests and representations received by the ministry from stakeholders across the solar industry.

The amendment introduces a revised Category-III under the ALMM framework, tailored for off-grid solar projects such as solar lamps, street lights, and fans. Modules in this category, typically with capacities below 200 Watt peak, will now require a minimum efficiency of 18.0 percent. This updated threshold applies to both crystalline silicon (c-Si) and Cadmium Telluride (CdTe) thin film technologies and marks a reduction from the earlier benchmark of 19.0 percent for such modules.

Recognising the unique challenges and deployment needs of decentralised solar systems, the government has clarified that these off-grid modules will not be listed under the main ALMM List-I. Instead, a dedicated sublist,ALMM List-I (DRE),has been established to track and regulate these products specifically intended for decentralised renewable energy (DRE) solutions.

The decision is aimed at giving solar manufacturers the flexibility to design more cost-effective and application-specific products without being limited by high efficiency thresholds that are better suited to grid-connected systems. This policy shift is expected to greatly benefit the areas where conventional power infrastructure is lacking or non-existent, thereby accelerating India’s progress toward universal energy access.

The broader ALMM Order structure remains unchanged for other categories. Category-I, which pertains to utility-scale grid-connected projects, continues to mandate minimum module efficiencies of 20.0 percent for c-Si and 19.0 percent for CdTe modules. Category-II, which includes rooftop solar systems and solar water pumping solutions, retains efficiency thresholds of 19.5 percent for c-Si and 18.5 percent for CdTe modules. Category-IV, which encompasses miscellaneous solar applications, continues to require minimum efficiencies of 19.0 percent for c-Si and 18.0 percent for CdTe modules.

Introduced in 2019, the ALMM Order aims to uphold the quality and performance standards of solar modules deployed across India. The latest amendment underscores the government’s continued commitment to fostering inclusive, sustainable energy growth while encouraging innovation and market responsiveness within the renewable energy sector.

By aligning technical regulations with practical deployment needs on the ground, particularly in rural India, the revised norms are expected to unlock new opportunities for solar manufacturers and service providers in the off-grid segment. Officials anticipate that this move will not only expand market access but also contribute meaningfully to India’s broader energy transition and sustainable development goals.