ALMM for solar cells to increase tariffs by 40-50 paisa per unit; diminish pace of capacity additions, says industry
Notable because
In September 2024, the government drafted an amendment to implement List II of the Approved List of Models and Manufacturers (ALMM) for solar PV cells, effective April 2026. The ALMM aims to stimulate domestic manufacturing by guaranteeing steady demand from projects selling electricity generated to the government. Once implemented, this ALMM mandate will obligate all solar PV manufacturers listed in ALMM List I to source their PV cells from List II for such projects.
What to look out for in the months ahead
It now appears that this move has the potential to increase tariffs by 40–50 paisa per unit. This increase in solar cell prices could potentially drive up solar tariff discovery costs to exceed INR 3 per unit.
Will the higher tariff discovery, backed by increasing demand, lead to economies of scale and bolster domestic PV cell manufacturing in the country?