No Change in ALMM Policy; Centre Provides Extended Relief Window for Select Solar Projects up to December 2026

Why in news

The Ministry of New and Renewable Energy (M/o N&RE) has extended a limited exemption from the Approved List of Models & Manufacturers (ALMM) List-II for Net-metering and Open Access Renewable Energy (RE) projects until December 31, 2026.

Exam relevance

GS3, GS2 · Economy, Environment & Ecology, Governance · Prelims · Mains

Key facts

1. The Ministry of New and Renewable Energy (M/o N&RE) has decided there will be no change in the Government of India's policy regarding the implementation of ALMM List-II for solar PV cells.
2. No blanket extension in the applicability of ALMM List-II for solar power projects will be provided.
3. A limited exemption window has been extended for Net-metering projects and Open Access RE power projects.
4. These specific projects can now commission with an exemption from ALMM List-II (for solar PV cells) until December 31, 2026.
5. Previously, this dispensation for Net-metering and Open Access renewable power projects was available until May 31, 2026.
6. This extension aims to help standalone solar PV module manufacturers by protecting their investments in inventories through additional demand creation.
7. It also provides sufficient time for manufacturers to increase their sourcing of solar cells from ALMM List-II enlisted solar cell manufacturers, as the solar cell capacity in ALMM List-II continues to rise.

Prelims pointers

• ALMM List-II pertains to solar PV cells.
• The Ministry of New and Renewable Energy (M/o N&RE) is responsible for the ALMM policy.
• The exemption from ALMM List-II has been extended for Net-metering projects and Open Access RE power projects.
• The new deadline for this exemption is December 31, 2026.
• The previous deadline for this specific exemption was May 31, 2026.
• There is no blanket extension for the applicability of ALMM List-II for all solar power projects.

Mains practice question

Critically analyze the implications of the government's decision to extend the ALMM List-II exemption for specific solar projects. How does this policy balance the objectives of promoting domestic manufacturing, ensuring quality, and facilitating renewable energy deployment in India?

Static linkage

The Approved List of Models & Manufacturers (ALMM) is a list of eligible models and manufacturers of solar PV cells and modules complying with the standards and specifications issued by the Ministry of New and Renewable Energy. It aims to ensure quality and promote domestic manufacturing in the solar sector. Net-metering and Open Access are mechanisms for consumers to utilize renewable energy sources, often involving grid connectivity.

Significance

This decision provides crucial relief to specific segments of the solar industry, particularly Net-metering and Open Access projects, by extending the exemption from ALMM List-II. It supports standalone solar PV module manufacturers by safeguarding their existing investments and offering a transition period to adapt to ALMM compliance for solar cell sourcing. The move balances the government's objective of promoting domestic manufacturing and quality control through ALMM with the practical implementation challenges faced by the industry, thereby facilitating the continued growth of renewable energy projects.