What's Happening?
India's solar energy sector is facing a significant challenge due to a delay in the mandate requiring government-backed solar projects to use domestically produced solar cells. The Approved List of Models & Manufacturers (ALMM) List-II mandate, initially
set for June 2026, has been extended to December 2026. This delay highlights the gap between India's solar cell manufacturing capacity and the demand from project developers. While module manufacturing capacity is around 193GW, domestic cell capacity is only about 31GW. The mismatch is more pronounced in advanced solar technologies like TOPCon. The Ministry of New and Renewable Energy's decision aims to provide time for manufacturers to adjust and increase domestic cell sourcing.
Why It's Important?
The delay in the cell mandate underscores the challenges India faces in achieving its solar energy targets. The reliance on imported solar cells, primarily from China, poses risks to India's energy security and self-reliance goals. The extension provides temporary relief to manufacturers but highlights the need for significant investment in domestic cell production. The situation presents operational challenges and financial risks for manufacturers, who may need to modify production lines and manage disruptions. The government's decision reflects a balancing act between supporting domestic manufacturing and meeting solar energy targets, crucial for India's renewable energy ambitions.
