ALMM Phase-II Mandate Takes Effect: Why Solar Panel Prices Are Rising in India (and the Dec 31 Exemption Window)

India’s solar revolution is undergoing its biggest domestic manufacturing overhaul in over a decade. While earlier iterations of the Approved List of Models and Manufacturers (ALMM List-I) only required the final solar panel (module) to be assembled in India, manufacturers were largely assembling imported silicon solar cells—primarily from China and Southeast Asia.

With the implementation of ALMM List-II, the Ministry of New and Renewable Energy (MNRE) now demands that both the solar cell and the module be manufactured in India for all government-sponsored schemes, including the mega ₹75,000-crore PM Surya Ghar Muft Bijli Yojana. The outcome? A tight domestic supply chain, temporary component premiums, and widespread changes in consumer pricing.

How ALMM List-II Impacts Solar Panel Pricing in 2026

India currently has over 55 GW of solar module manufacturing capacity, but domestic solar cell capacity remains constrained around 12 to 16 GW. This acute mismatch has triggered an immediate price surge for DCR (Domestic Content Requirement) certified modules:

The December 31, 2026 Exemption Window: How It Protects Consumers

Recognizing that an overnight ban on non-domestic cells would halt rooftop solar deployment, MNRE introduced a temporary relief window. For residential consumers who applied under PM Surya Ghar and private commercial open-access projects, existing module stocks with certified List-I status can be commissioned until December 31, 2026 without forfeiting subsidy eligibility.

However, projects commissioned after January 1, 2027 will face rigid DCR compliance checks, where module barcodes that fail the indigenous cell traceability test will result in automatic subsidy cancellation.

What Should Solar Buyers Do Right Now?

If you are receiving quotes from EPC contractors or local solar dealers, follow these three defensive steps:

Frequently Asked Questions