- The Ministry rejected the solar sector's demand to extend the ALMM List-II deadline beyond June 1, 2026
- Solar projects must use only domestically approved solar cells from June 1, ending imported module flexibility
- Developers such as NTPC Green Energy face higher costs, margin pressures, and project delays due to the ruling
The solar sector will be in focus on Tuesday's trade following a significant policy decision from the Ministry of New and Renewable Energy that saw them reject the solar industry's demand for a blanket expension on the Approve List of Models and Manufacturers (ALMM) List-II implementation deadline of June 1, 2026.
This could be a positive move for domestic solar manufacturers such as Premier Energies, Waaree Energies and Vikram Solar, among others. But it could create significant headwinds for project developers.
From June 1, solar projects will be required to use only domestically approved solar cells, thus ending the period of flexibility that allowed developers to source imported modules. The government will only consider relief for projects that are truly stranded and the conditions set for those projects are stringent.
In order to qualify, a project must have completed land acquisition, achieved financial closure, receive connectivity approvals and have modules already delivered or substantially installed before the deadline.
Why The Industry Wanted An Extension
Developers had pushed back hard, citing fears of a domestic solar cell shortage, higher procurement costs and execution delays. They are particularly fearful for projects that had already placed orders for imported modules before the deadline was firmly established.
What It Means For Domestic Manufacturers
For Premier Energies, Waaree Energies, Emmvee Photovoltaic, Vikram Solar and Saatvik Green Energy, the decision is a structural demand catalyst.
Improved demand visibility, higher capacity utilisation, tighter domestic supply and stronger pricing power are the direct benefits as developers are now compelled to source locally.
What It Means For Developers
The downside falls on solar project developers. NTPC Green Energy, JSW Energy, ACME Solar Holdings and KPI Green Energy face rising execution costs, potential margin pressure on older low-bid projects and continued commissioning delay risks.
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