Policy Update Summary
The Ministry of New and Renewable Energy (MNRE) has finalized its regulatory stance on the Approved List of Models and Manufacturers (ALMM) List-II, cementing June 1, 2026, as the hard implementation deadline for solar cell compliance. In a move designed to accelerate value-chain indigenization and support the Atmanirbhar Bharat initiative, the Ministry has officially ruled against a blanket extension. All solar PV projects commissioned on or after June 1, 2026, must utilize solar PV modules enlisted in ALMM List-I and solar PV cells from ALMM List-II. This directive signals a strategic shift from a deployment-first mindset to one prioritizing domestic industrial development, forcing developers to pivot toward Domestic Content Requirement (DCR) compliance despite industry pressure regarding supply chain constraints.
The June 1, 2026 Mandate and the “No Blanket Extension” Ruling
Per the MNRE Office Memorandum dated May 25, 2026, the government has confirmed that no general extension will be granted beyond the June deadline. The regulatory distinction remains absolute:
- Pre-June 1, 2026: Projects commissioned before this date are exempt from the solar cell (List-II) requirement.
- Post-June 1, 2026: Mandatory compliance with both List-I (modules) and List-II (cells) is required for net-metering, open access, and government-funded projects.
The Ministry’s decision was informed by a Department of Expenditure (Ministry of Finance) memorandum dated April 29, 2026, which addressed the West Asia situation. The Ministry has classified this geopolitical disruption as a Force Majeure event. Consequently, rather than a blanket policy change, relief will be restricted to “case-to-case” extensions of not less than two months and not more than four months, depending on specific project-level impacts. This approach explicitly clarifies that List-II pertains strictly to solar cells, correcting industry misconceptions that the mandate extended to solar inverters.
MNRE Advisory to DISCOMs: Expediting Commissioning
Acknowledging the risk that administrative friction could penalize compliant developers, the MNRE issued an urgent advisory to DISCOMs, State Nodal Agencies (SNAs), and Chief Electrical Inspectors to the Government (CEIGs). The Ministry highlighted that procedural delays in inspections and the issuance of commissioning certificates could unfairly trigger non-compliance for projects physically installed before the deadline.
Core instructions to these authorities include:
- Expedited Inspections: Prioritizing and accelerating technical inspections for projects nearing completion.
- Immediate Certification: Streamlining the issuance of commissioning certificates for installations completed or expected to be grounded before May 31, 2026.
- Administrative Bottleneck Mitigation: Ensuring that utility-level delays do not result in developers being forced to retroactively comply with List-II requirements for projects already at the site.
Case-to-Case Relief: Specific Exemption Criteria
To protect existing investments and safeguard investor confidence, the MNRE has established a framework for time extensions. Relief is categorized into two tiers, requiring rigorous documentary proof to be submitted via the National Institute of Solar Energy (NISE) portal (https://solarcrportal.nise.res.in/) by June 30, 2026.
Compliance Relief Categories and Documentation Requirements
| Category | Eligibility Criteria | Required Supporting Documents |
| Category I | 100% of solar PV modules required for the project have been installed at the site before June 1, 2026, but the project is not yet commissioned. | Approval/certification from the Electrical Inspectorate certifying DC side installations and module installation. |
| Category II | “Effective Steps” taken for grounding the project prior to June 1, 2026, including module arrival or installation. | Self-attested land registry (min. 75% possession); Financial Closure docs (Sanction letters/CA certificates); In-principle connectivity grant; Approved Electrical Drawings (obtained prior to May 1, 2026); and GST invoices/Waybills for module arrival. |
Solar Manufacturing Milestones and Capacity Data
India’s solar manufacturing landscape is undergoing a massive expansion, though a significant “certification gap” persists between module and cell capacity.
- Manufacturing Capacity: As of December 2025, cumulative module capacity reached 210 GW, with 173.1 GW currently enlisted under ALMM List-I.
- Solar Cell Bottleneck: Cumulative cell manufacturing capacity stands at 27 GW, with 26.5 GW enlisted under ALMM List-II. Crucially, ALMM-certified cell capacity currently accounts for only 15.3% of ALMM-certified module capacity, posing a near-term supply risk for DCR-mandated projects.
- Technological Distribution: Approximately 70% of module capacity utilizes TOPCon technology, while monocrystalline technology dominates cell production at over 57%.
- Geographic Concentration: Gujarat remains the manufacturing hub, controlling 45% of both module and cell production capacity. Tamil Nadu (16% cells) and Karnataka (13% cells) follow in cell manufacturing.
Impact on PM Surya Ghar: Muft Bijli Yojana and Residential Consumers
The directive introduces critical nuances for residential rooftop solar under the PM Surya Ghar: Muft Bijli Yojana. A strategic distinction has been made for the “Give It Up” campaign:
- Timeline Extension: Residential net-metering consumers who voluntarily forego government subsidies will be governed by existing scheme guidelines until March 31, 2027, provided applications are processed through the National Portal.
- Service Charge Allocation: Under O.M. No. 318/17/2024-GCRT, a “Service Charge” component of ₹657 crores (1% of the total CFA) has been earmarked. This fund supports the National Programme Implementation Agency (NPIA) and State Implementation Agencies (SIAs) in deploying IT infrastructure and manpower to reach the target of 1 crore rooftop installations.
Strategic Implementation Framework
The MNRE’s refusal to grant a blanket extension underscores its commitment to establishing a self-reliant solar ecosystem. By instituting an Expert Committee to review project-specific claims, the Ministry is balancing industrial indigenization with the pragmatic protection of capital investments already on the ground.
For corporate compliance and regulatory auditing, stakeholders should refer to the following official directives:
- O.M. No. 283/63/2025-GRID SOLAR: Regarding the ALMM List-II June 1 deadline and extension framework.
- O.M. No. 318/17/2024-GCRT: Outlining the operational guidelines for service charges and implementation support.
- NISE Portal for Relief Claims: https://solarcrportal.nise.res.in/ (Submission deadline: June 30, 2026).
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