Solar industry will change in two years and now only 'Made in India' solar cells will be used

The central government has taken a major step toward becoming self-reliant in the solar energy sector. After June 2026, only solar modules or solar cells produced in India will be used in any (government or private) solar project to be set up in the country. For this, the government has made necessary provisions by making mandatory amendments to the Approved Modules and Manufacturers of Solar Photovoltaic Order (ALMM-2019).

The Ministry of New and Renewable Energy has said that this amendment will prove to be an important step for the Indian solar energy sector and towards adopting clean energy. This is the much-awaited list of solar TV cell manufacturing companies under the ALMM framework. Only the companies included in this list will supply solar modules and cells after June 2026.

The government said that the solar energy equipment for government-supported projects, net metering projects, and open-access renewable energy projects will have to be bought only from the companies included in this list. The government was not releasing this list till now because the number of companies manufacturing solar cells in the country was very low and it was not known whether they would be able to meet the demand of domestic projects or not.

However, after a detailed investigation process conducted by the government and examining the productivity and quality of those companies, it is believed that the domestic industry will be able to fulfill the demand. The government has also been told that India is ready to establish a global-level solar supply chain. This will also strengthen India's energy security and reduce dependence on imports.

According to government data, in the first half of the year 2024, India has imported solar modules with 13,200 MW capacity. This is 338 percent more than last year. While during the same period, the import of solar cells has increased by 155 percent. In the year 2023-24, India imported solar cells worth Rs 51,460 crore, and about 90 percent of it came from China.

Despite imposing additional import duty, the solar cells imported from China are not stopping their import. The total capacity of solar power projects undertaken in India is 94 thousand MW. The set target is to increase this to three lakh MW by the year 2030. It means two lakh MW will have to be added.

Economic research agency GTRI says that India may have to import solar cells worth $ 30 billion by the year 2030. However, the amendment in ALMM can change the situation now. If any solar energy project is set up in the country in the future, only India-made cells and modules will be installed in it.