MNRE’s Approved List of Solar Manufacturers

After a delay of one year, the Ministry of New and Renewable Energy (MNRE) has finally put into effect the Approved List of Models and Manufacturers (ALMM) for solar photovoltaic modules. The initiative, outlined in the Approved Models and Manufacturers of Solar Photovoltaic Modules Order, 2019, mandates that manufacturers of solar modules undergo voluntary inspections conducted by the National Institute of Solar Energy, an affiliate of the MNRE. Inclusion on this list certifies a company as a legitimate manufacturer of solar panels rather than a mere importer or assembler.

The implementation of the ALMM carries several benefits. Firstly, only models and manufacturers included on the list are eligible for use in government projects and schemes, thereby bolstering the credibility of the solar industry. Secondly, it aims to reduce India’s dependency on imports, particularly from China, which currently controls 80% of the global supply of solar modules. This move is expected to stimulate local manufacturing, thus generating employment opportunities and fostering economic growth.

India’s solar manufacturing capacity stands at approximately 50 GW for modules and 6 GW for solar cells. Despite this, the country has imported around 11.17 billion USD worth of solar cells and modules over the past five years, with China accounting for a significant portion of these imports. Reasons for this import dependence include insufficient domestic manufacturing capacity and the high costs associated with domestically produced solar PV panels.

To address these challenges and promote domestic manufacturing, the government has introduced several initiatives. These include the Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules, the Domestic Content Requirement (DCR) under certain MNRE schemes, and the imposition of customs duties on solar modules and cells. With a customs duty of 40% on solar modules and 25% on solar cells implemented since 2022, the government aims to create a conducive environment for the growth of the domestic solar industry while reducing reliance on imports