MNRE Clarifies ALMM Applicability

Regarding the exemption from using solar cells listed in ALMM List-II for Net-Metering and Open Access Renewable Energy (RE) power projects commissioned before June 1st, 2026, the MNRE has clarified that Net-Billing, Virtual Net Metering, and Group Net Metering will be treated on par with Net-Metering. The Ministry explained that Virtual Net Metering and Group Net Metering are essentially models of Net-Metering that cater to groups of consumers or consumers with multiple service connections, while Net-Billing is a hybrid of Net-Metering and Gross Metering. Therefore, the existing ALMM exemptions applicable to Net-Metering will also extend to these related schemes.

In response to the query about ALMM exemptions for behind-the-meter solar power plants used for captive consumption, the MNRE clarified that the exemption granted to behind-the-meter solar power plants solely used for captive consumption by a consumer or group of consumers does not apply to behind-the-meter connections for captive consumption of government entities or public sector enterprises.

The Ministry highlighted that government projects were brought under the ALMM mandate from the outset (via an Office Memorandum dated January 2nd, 2019), and subsequently, Open Access and Net-Metering projects were included through amendments in January and March 2022. The clarification issued on October 7th, 2022, which provided an exemption for certain behind-the-meter captive consumption, was specifically for non-governmental consumers or groups of consumers. Therefore, government entities and public sector enterprises undertaking behind-the-meter captive consumption projects are still required to adhere to the ALMM guidelines for both solar PV modules and solar PV cells.

These clarifications from the MNRE provide greater clarity on the applicability of the ALMM order across various solar power deployment models.

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