Mandatory domestic sourcing rule extended to solar cells 

The government on Monday issued an order to include solar cells under the ambit of Approved List of Models and Manufacturers (ALMM) effective from June 1, 2026, a measure aimed to boost domestic manufacturing of solar cells and reduce dependency on Chinese imports.

ALMM is a list of the models and manufacturers from which solar project developers are required to buy equipment from. Currently, ALMM has been imposed for solar modules. However, in the past few years, implementation of ALMM for solar modules has faced several challenges primarily due to the reluctance from the industry.

The new rule extends the norm to a more primary level of manufacturing of solar equipment, which would mean increased domestic value addition. 

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“With installed capacity of solar PV cells in the country expected to increase substantially in next year, it has been proposed to issue List-II of solar PV cells under ALMM, which shall be effective from 1st June 2026,” the ministry of new and renewable energy said in its order.

It noted that starting June 1, 2026 onwards, only such solar PV modules will remain in ALMM List-1 (for solar PV modules) which are using solar PV cells from ALMM List-II (for solar PV cells) and solar PV module manufacturers who fail to comply to this condition, will be liable to be delisted from ALMM List-1.

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However, after May 31, 2026, the ministry will come out with a separate ALMM list for solar PV modules which are enlisted in ALMM but do not use solar PV cells from the list for solar PV cells. The list would be applicable for exempted projects.

The ministry of new and renewable energy had earlier released draft amendments to  the ALMM order for implementation of ALMM for Solar PV cells proposing to issue List-II of solar PV cells under the list,

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