The Indian government is expected to soon decide on imposing non-tariff barriers on solar cell imports by including them in the Approved List of Models and Manufacturers (ALMM). This move could reshape the solar industry by reducing Chinese imports and encouraging domestic production.
Speaking to reporters on Wednesday, Pralhad Joshi, Union Minister for New and Renewable Energy, confirmed that the ministry is actively considering this proposal.
The ALMM is a government-approved list of solar module models and manufacturers eligible to supply to state-supported projects. In April, Mint reported that after applying the ALMM to solar modules earlier this year, the government is now contemplating similar measures for solar cells to promote Indian-made products.
When asked about extending the ALMM to solar cells, the minister said, “It is under consideration, and we will make a decision soon.”
This initiative aims to reduce India’s dependence on Chinese imports, which dominate the global solar market, while boosting the country’s domestic solar equipment manufacturing sector.
Initially introduced in 2021, the ALMM was temporarily suspended until FY24 due to concerns over low module supplies and its potential impact on solar capacity expansion. However, the list was reinstated in April, currently allowing only India-made modules, with an approved solar module capacity of around 54 GW.
In recent years, key government initiatives to promote domestic production include high import duties on solar modules and cells, the ALMM, and production-linked incentive (PLI) schemes aimed at strengthening the solar module ecosystem.
As India targets 500 GW of non-fossil energy capacity by 2030—with 292 GW expected from solar power—the country will require an annual solar cell and module manufacturing capacity of 25-50 GW. Currently, India’s solar cell manufacturing capacity is just over 6 GW.
At the Bharat Electricity, PowerGen, and Indian Utility Week 2024, Joshi highlighted India’s progress in renewable energy, noting that the country’s installed renewable capacity increased from 75.52 GW in March 2014 to 203 GW today, marking a 165% growth in 10 years. He stressed that India’s achievements serve as a model for nations aiming to transition to a low-carbon economy.
The minister reiterated the government’s dedication to expanding renewable energy, improving energy efficiency, and fostering innovation in the energy sector. He also invited global investors and companies to explore opportunities in India’s renewable energy and green hydrogen sectors.
These initiatives align with India’s broader goals of reaching 500 GW of non-fossil power capacity by 2030 and achieving net-zero carbon emissions by 2070.
