Archive · 9 Aug 2025
India Amends Solar Policy to Boost Domestic Manufacturing
India is working hard to make solar power a big deal!
The country has almost reached its goal of having the ability to make 100 GW worth of solar panels, and there is also plans for using a lot of wind and non-fossil fuel sources.
The government has a rule called ALMM that encourages companies to make solar panels in India.
Recently, the government changed this rule, giving some companies more time to use solar cells made in India.
But, some companies, especially those that sell solar power to other businesses, are not getting the same break.
There are questions about whether there will be enough trained workers to make all these solar panels, and some people think there might be too many panels being made.
India is approaching 100 GW of solar module manufacturing capacity.
ALMM, a government mechanism, encourages the use of India-made solar modules.
Amendments to ALMM relax cell-usage timelines for government projects.
Private solar projects supplying power to commercial clients do not have the same exemptions.
Concerns exist regarding a potential lack of skilled labor and a possible oversupply of manufacturing capacity.
- Who
- The Ministry of New and Renewable Energy.
- What
- Amendments to the ALMM policy for solar energy in India.
- When
- The amendments were brought in last week and will impact projects commissioned after June 1, 2026.
- Where
- India.
- Why
- To boost domestic solar module manufacturing and regulate cell usage.
Private Sector Concerns
Government Perspective
Exemptions and Fairness
Private Sector Concerns
Private companies supplying power to commercial and industrial clients are not given the same flexibility in sourcing cells as government projects.
Government Perspective
Government projects are prioritized, and given longer timeframes to switch to India-made cells.
- Solar Module Capacity
- 91 GW
- Module Manufacturing Growth
- Increased 13 times since 2021
- ALMM
- Approved List of Modules and Manufacturers
- ALCM
- Approved List of Cell Manufacturers
- Cell Manufacturing Capacity
- 27 GW