The debate surrounding the Approved List of Models and Manufacturers (ALMM) refuses to die down. Still a cause for much uncertainty in the solar segment, the ALMM includes those models and manufacturers that are eligible to supply solar modules to government or CPSU allocated and subsidised projects, as well as open access and net-metering projects. The frequency policy flip flops regarding its implication have led to significant confusion and contention amongst the various stakeholder groups in the solar power industry.
In March 2023, the ALMM implication was put in abeyance for one year for projects commissioned till March 2024, to give the industry adequate time to develop the required domestic supply chain capabilities and for manufacturers to get the required certifications.
On February 9, 2024, the Ministry of New and Renewable Energy (MNRE) decided to reimpose the ALMM for solar PV modules from April 1, 2024, with exemptions for open access and captive power projects in cases where projects were at advanced stages of construction as well as for those assets where orders for solar modules were placed before March 31, 2024.
Then, a week later on February 15, 2024, to the surprise of the entire solar industry, the MNRE did a complete volte-face and put the ALMM in abeyance again till further notice. For domestic manufacturers that had hoped for a continuation of the ALMM from April 2024 onwards to allow them to expand their domestic reach, this latest order could put a small dent in their plans. Fortunately for some, they have managed to establish ties abroad and are exporting modules to various markets in Europe and the US.
However, for developers looking to source imported modules and for foreign manufacturers that hold a large share in the Indian market, this is good news as there is no foreign manufacturer on the ALMM as per the last update in January 2024.
Overall, though, this policy flux impacts long-term visibility for both developers and manufacturers in terms of their supply channels. What is needed, going forward, is either a clear yes or an unequivocal no on ALMM.
