MNRE Clarifies ALMM Implementation for Solar PV Cells

The first version of the ALMM List-II for solar PV cells was published on July 31, 2025, which set the “Cut-off date” for various exemptions as August 31, 2025.

Applicability and Exemptions for Solar Cell ALMM (List-II)

The MNRE clarifies the key conditions governing the use of ALMM List-II:

1. Government and Bidding Projects

Projects covered under ALMM for solar modules (List-I) are generally covered under ALMM for solar cells (List-II), with applicability determined by the bid submission date:

ConditionLast Date of Bid SubmissionALMM List-II (Solar Cells) Requirement
ExemptedOn or before August 31, 2025 (the Cut-off date)Exempted from using solar PV cells from ALMM List-II, regardless of the commissioning date (even if commissioned after June 1, 2026).
MandatoryAfter August 31, 2025Mandatory to use solar PV cells from ALMM List-II, irrespective of the commissioning date.

2. Net-Metering and Open Access Projects

These projects, which are mandated to use ALMM List-I modules, have a different applicability timeline based on the commissioning date:

Commissioning DateALMM List-II (Solar Cells) Requirement
Prior to June 1, 2026 (Effective Date)Exempted from using solar PV cells from ALMM List-II.
On or after June 1, 2026Mandatory to source solar PV cells from ALMM List-II.

3. Ownership Transfer and Already Commissioned Projects

Existing Captive Projects (Ownership Transfer): For projects commissioned before June 1, 2026, and compliant with ALMM List-I modules, the original ALMM List-I compliance remains valid if ownership transfer occurs on or after June 1, 2026. Such projects shall not be mandated to comply with ALMM List-II.

Modifications/Additions: If any modifications or additions in capacity are undertaken post-June 1, 2026, those changes shall be mandated to follow ALMM List-II.

Projects in Section 63 Bidding: Projects participating in a bid (under Section 63 of the Electricity Act) as an already commissioned project with commissioning achieved on or prior to the August 31, 2025 Cut-off date, shall be exempt from the purview of ALMM for solar cells.

Domestic Content Requirement (DCR) Clarification

The MNRE explicitly stated that the ALMM Orders (including the July 28, 2025, modification) do not relax any provisions of the Domestic Content Requirement (DCR) under specific MNRE Schemes.

Schemes like Components B&C of PM-KUSUM, PM Surya Ghar: Muft Bijli Yojana, and CPSU Scheme Phase-II will continue to be governed by their respective Scheme Guidelines, which mandate the use of domestically manufactured solar PV cells and modules.

PM-KUSUM Component-C Exception: The exemption from using domestically manufactured solar PV cells, previously available for projects where the Letter of Award (LoA) was issued on or before March 31, 2024, will remain valid. However, projects with an LoA issued after March 31, 2024, must use domestically manufactured solar PV cells and modules.

Tenders with Bid Submission between December 2024 and July 2025

The MNRE addressed tenders where the last date of bid submission fell between the initial December 9, 2024, order and the modifying order of July 28, 2025 (but prior to the August 31, 2025, Cut-off date).

  1. The MNRE’s July 28, 2025, OM does not automatically relax bid conditions in these tenders.
  2. If the original bid conditions mandated the use of ALMM List-II solar PV cells, those conditions remain valid.
  3. The bid inviting entity is required to clarify this position explicitly to the awardees/bidders, stating that the change in the ALMM Cut-off date does not constitute a relaxation of the original tender conditions.

RECENT UPDATES