Premier Energies Ltd. and Waaree Energies Ltd. shares declined in early trade on Monday after the government extended the deadline for mandatory domestic solar cell sourcing for certain solar power projects until Dec. 31, 2026.
Premier Energies shares fell as much as 6.1% to Rs 1,063, while Waaree Energies declined as much as 3.8% to Rs 2,733.
The extension delays the implementation of the domestic sourcing requirement for eligible projects and is expected to ease installation costs stemming from limited domestic solar cell availability. It also gives manufacturers more time to align with the government's localisation framework.
The Ministry of New and Renewable Energy issued an office memorandum extending the deadline by seven months from the earlier May 31, 2026 cut-off to Dec. 31, 2026.
The domestic sourcing rule came into effect on June 1 and requires net-metering and open-access solar power projects to use solar cells manufactured in India.
The latest decision marks a change from the Centre's earlier position. In May, the government had said it would not grant a blanket exemption and would instead consider relief only for projects that had already completed milestones such as land acquisition, financial closure and grid connectivity.
The additional time is intended to help solar module manufacturers transition to the Approved List of Models and Manufacturers (ALMM-II) framework while domestic solar cell manufacturing capacity expands.
India has a large number of solar module manufacturers, but domestic solar cell manufacturing capacity remains limited. The extension is expected to help safeguard investments made by module manufacturers as the local supply chain continues to develop.
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