No Change in ALMM Policy; Centre Provides Extended Relief Window for Select Solar Projects up to December 2026

📌 Summary:

• The Ministry of New and Renewable Energy (MNRE) clarified that there is no change in the Government's policy on implementing ALMM List-II for solar PV cells, and no blanket extension will be granted for solar power projects

• A limited exemption window has been provided: Net-metering projects and Open Access renewable energy projects may commission with exemption from ALMM List-II (for solar PV cells) until 31 December 2026

• This dispensation for that limited segment was earlier available only till 31 May 2026 — the new order extends it by seven months

• Rationale 1 — smooth transition: the decision follows detailed deliberations with solar industry stakeholders to ease the shift to ALMM List-II for these two project categories

• Rationale 2 — protecting existing investment: it helps standalone solar PV module manufacturers by creating additional demand for inventories already built up

• Rationale 3 — supply ramp-up time: it gives module makers sufficient time to increase sourcing from ALMM List-II enlisted domestic solar cell manufacturers, as List-II cell capacity continues to rise steadily

• Underlying objective: making India Atmanirbhar in solar PV manufacturing and a major player in the global solar value chain, reducing import dependence on cells

• Issued via MNRE O.M. No. 283/53/2026-GRID SOLAR dated 18.07.2026

🎯 UPSC Relevance: GS3 — Environment (renewable energy transition, India's non-fossil capacity targets) and Indian Economy (industrial policy, domestic manufacturing, PLI-linked value chain localisation, trade-off between deployment speed and self-reliance).

📝 Prelims Facts:

• ALMM = Approved List of Models and Manufacturers; List-I covers solar PV modules and List-II covers solar PV cells

• ALMM applies to government-supported, government-assisted and net-metering/open-access projects, and to schemes such as PM-KUSUM and PM Surya Ghar

• ALMM List-II for solar PV cells became effective from 1 June 2026

• MNRE is the nodal ministry for renewable energy; SECI (Solar Energy Corporation of India) is its implementing/trading arm

• India's target under its NDC is 500 GW of non-fossil-fuel installed capacity by 2030

🔑 Key Term: Open Access (Power) — a regulatory provision under the Electricity Act, 2003 allowing a large consumer (generally above 1 MW) to buy electricity directly from a generator or the market using the transmission/distribution network, rather than from the local discom; net-metering, by contrast, lets a consumer export surplus rooftop solar power to the grid and offset it against consumption.