What's Happening?
The Indian government has expanded the Advanced List of Models and Manufacturers (ALMM) scheme to include solar ingots and wafers, making domestic manufacturing mandatory for solar projects. This policy change, effective June 1, 2028, aims to reduce import
dependence and strengthen India's solar supply chain. The Ministry of New and Renewable Energy (MNRE) announced that all solar projects, including net-metering and open-access ones, must use domestically made wafers from an approved list. The ALMM scheme, which already covers solar cells and modules, will now ensure further backward integration in the solar supply chain.
Why It's Important?
This policy shift is a significant step towards building a self-reliant solar manufacturing ecosystem in India. By mandating domestic sourcing of solar wafers, the government aims to reduce the sector's vulnerability to supply shocks and trade disruptions. The move is expected to create high-quality manufacturing jobs and enhance the country's energy security. Industry leaders have welcomed the policy, noting that it supports the development of a stable and competitive solar manufacturing base. The initiative aligns with India's broader goals of increasing renewable energy capacity and reducing carbon emissions.
What's Next?
The introduction of ALMM List-III for solar ingots and wafers is expected to drive investment in domestic manufacturing capacity. The MNRE plans to issue the initial list of approved manufacturers once at least three companies with a combined capacity of 15 gigawatts are available. Industry stakeholders anticipate rapid scaling of domestic production capabilities over the next few years. This transition will likely enhance supply chain resilience and support the growth of a globally competitive solar manufacturing ecosystem. Companies are expected to invest significantly in expanding their manufacturing capacities to meet the new requirements.
