The Ministry of New and Renewable Energy’s (MNRE) decision not to grant a blanket extension of the Approved List of Models and Manufacturers (ALMM) List-II deadline beyond June 1, 2026, has reinforced regulatory certainty for India’s solar manufacturing ecosystem.

However, it has also raised concerns among developers and engineering, procurement, and construction (EPC) contractors who fear near-term project delays and cost pressures.

Under the mandate, net-metered and green energy open-access projects commissioned on or after June 1, 2026, must use modules made with cells listed under ALMM-II.

MNRE said it had received representations both for and against an extension, but after review, concluded that a general postponement was not required. Instead, projects where substantial investments have already been made may be considered for relief on a case-by-case basis.

Impact on EPC Contractors and Developers

While the decision is expected to support domestic cell manufacturing and improve policy certainty for manufacturers, developers, and EPC contractors worry that the transition may be difficult to manage without broader relief.

Their concerns are centered on the availability of ALMM-compliant solar cells, potential increases in module prices, execution delays in rooftop, commercial, and industrial (C&I), and open-access projects, and working capital pressure on EPC companies and MSMEs.

The Rajasthan Solar Association (RSA) has intensified industry discussions on the already implementedALMM List-II, urging policymakers to adopt a balanced, industry-ready transition framework for India’s solar sector.

RSA highlighted that India currently has around 30.8 GW of approved domestic solar cell manufacturing capacity, which remains significantly lower than the country’s rapidly expanding module manufacturing ecosystem. The association said this gap could create a major supply-demand mismatch as the mandate takes effect.

The association warned that a sudden transition could lead to limited availability of compliant domestic solar cells and higher module prices under the domestic content requirement (DCR) mandate. This could lead to delays in rooftop, C&I, and open-access projects, working capital pressure on EPC companies and MSMEs, and supply chain disruptions across ancillary industries.

RSA also noted that India’s manufacturing ecosystem remains heavily dependent on mono PERC technology, while market demand is increasingly shifting toward TOPCon technology. This, it said, adds another layer of complexity to the transition.

Echoing similar sentiments, Ajay Yadav, President of the Renewable Energy Association of Rajasthan (REAR), said, “EPC contractors and developers are just not ready for this. This is premature from MNRE and shows a lack of planning. The ones who are going to suffer the most are the small players who cater to residential and C&I projects.”

Yadav noted that the exemption clauses are also unclear and require extensive paperwork and inspections, which are practically not feasible. It will add to the clutter and chaos. “Just take the example of inspection by electrical inspectors, which is just not a practical option. There is no traceability to confirm the exact volume of cells used in the modules that have been procured from the ALMM List II.”

There is also no mention of the developers who had already placed their orders and made the payments. “It seems that the mandate has been issued only to make the manufacturers happy,” he said.

Calling for a minimum three-month postponement of the mandate, Yadav noted that module prices have already started going up by ₹1.5 (~$0.0156)/W-₹2 (~$0.0209)/W, and they could go further up.

Boost for Solar Manufacturing Ecosystem

While developers and EPC contractors assess the implications of the mandate, manufacturers are pleased with the MNRE’s decision.

The total enlisted capacity under ALMM List II now stands at 30.509 MW, and the cumulative module manufacturing capacity under ALMM reached 193.14 GW by the end of April.

Ganesh Moorthi, Chief Technology Officer at Luminous Power Technologies, said, “The implementation of the DCR mandate from June 1 marks a significant step towards strengthening India’s solar manufacturing ecosystem. The move is expected to accelerate investment across the solar value chain, improve supply chain resilience, and create long-term opportunities for domestic manufacturers. It will also encourage healthy competition while driving greater focus on R&D, technology innovation, and quality enhancement across the industry.”

Manufacturers were particularly happy about policy continuity, even though they spoke of the possibility of short-term cell shortages.

Avinash Hiranandani, Vice Chairman and Managing Director at RenewSys, said, “It’s a good move. We are ready for it. This shows the government’s focus on continuity in regulatory matters, a key factor in advancing the solar industry. I agree there is a shortage of TOPCon cells to some extent, but we have an ample supply of mono PERC cells which can be used.”

“Also, one should consider the fact that it takes huge investments to put a cell line and ramp up production, so if the deadline had been deferred, then it would have been a big setback for the manufacturers,” he said.

Way Forward

To ensure smoother implementation, RSA recommended a phased, calibrated rollout of the ALMM-II mandate, transitional support for ongoing projects, reassessment of timelines based on manufacturing readiness, and improved alignment between policy execution and technology scalability.

Yadav said that MNRE should have a portal, like the one for the PM Surya Ghar program, to track modules and cells and serve as a database for verification. “Otherwise, there is no practical way to verify compliance through on-site verification and paperwork. There are many loopholes in the order that smart players can exploit.”

MNRE’s decision to go ahead with ALMM-II points to a widening divide within the solar industry. While manufacturers welcome policy stability, developers and EPC contractors want a more flexible transition to protect ongoing projects, avoid cost escalations, and maintain momentum in renewable energy deployment.