What Happened
- The Ministry of New and Renewable Energy (MNRE) has extended the Approved List of Models and Manufacturers (ALMM) framework to include solar ingots and wafers, with the mandate taking effect from June 1, 2028.
- This is ALMM List-III (ingots and wafers), expanding mandatory domestic sourcing beyond List-I (solar modules) and List-II (solar cells) to the upstream silicon processing stages of the solar value chain.
- The new requirement will apply to all RE projects, including net metering and open access, with limited transitional exemptions for projects where bids were submitted before a defined cut-off date.
- The order also tightens List-I: from June 2028, modules can only retain ALMM List-I status if they are manufactured using ALMM-listed cells and wafers — creating a cascading domestic content requirement up the supply chain.
- India's current wafer and ingot production capacity is negligible despite having 64+ GW of module capacity and 12-15 GW of cell capacity, making this a demand-creation signal to trigger upstream investment.
Static Topic Bridges
ALMM Framework and Domestic Content Requirement (DCR)
The Approved List of Models and Manufacturers (ALMM) is a quality-and-origin certification mechanism maintained by MNRE. Solar modules and cells must be listed on the ALMM to be used in government-funded or grid-connected renewable energy projects. ALMM was introduced to ensure performance quality and, implicitly, to favour domestically manufactured equipment. It works alongside — but is distinct from — the Domestic Content Requirement (DCR): DCR is a specific mandate for certain schemes (PM-KUSUM, PM Surya Ghar, CPSU Phase-II) that legally requires use of Indian-made solar cells and modules. ALMM is broader — it applies to all RE projects. India's DCR history includes a WTO dispute (DS456, initiated by the US in 2013) where the WTO Appellate Body ruled India's Jawaharlal Nehru National Solar Mission DCR was inconsistent with GATT national treatment obligations; India subsequently restructured its approach using ALMM as a non-discriminatory quality filter.
- ALMM List-I: Solar modules (mandatory for all grid-connected RE projects since 2021)
- ALMM List-II: Solar cells (mandatory; drives cell manufacturing investment)
- ALMM List-III (new): Solar wafers and ingots (effective June 1, 2028)
- DCR (separate): Mandatory for PM-KUSUM (B&C), PM Surya Ghar, CPSU Phase-II — requires Indian cells AND modules; DCR provisions unaffected by this ALMM expansion
- WTO DS456: US challenged India's JNNSM DCR; Appellate Body ruled against India in 2016
Connection to this news: The ALMM List-III extension is a deliberate supply chain deepening policy — using the same demand-creation logic that built India's module and cell industry to now catalyse a wafer/ingot industry from near zero capacity.
India's Solar Manufacturing Value Chain
The solar photovoltaic (PV) manufacturing value chain runs from polysilicon → ingots → wafers → cells → modules. India has developed strong module (64+ GW capacity) and cell (12-15 GW) manufacturing capacity over the past five years, largely driven by PLI (Production Linked Incentive) scheme for solar PV modules (outlay: Rs 24,000 crore under Tranche-I and II), ALMM requirements, and Basic Customs Duty on imported modules (40%) and cells (25%) introduced in 2022. However, the upstream stages — ingot slicing and wafer manufacturing — remain almost entirely absent in India, with virtually all wafer supply imported from China. China dominates 90%+ of global wafer and polysilicon production. India's solar capacity addition target is 500 GW by 2030, requiring massive upstream supply chain investment to avoid Chinese import dependency.
- India module manufacturing capacity: 64+ GW (as of early 2026)
- India cell manufacturing capacity: ~12-15 GW
- India wafer/ingot manufacturing capacity: Negligible (near zero)
- Basic Customs Duty: 40% on imported modules, 25% on imported cells (from April 2022)
- PLI scheme for solar PV: Rs 24,000 crore; targeted 65 GW of integrated manufacturing
- 500 GW RE target by 2030: Requires 30-35 GW/year of new solar addition
- China's global wafer share: ~90%+ of production
Connection to this news: ALMM List-III creates the demand certainty needed for investors to commit the significant capital ($500 million+ per GW of wafer capacity) required to build an industry from scratch — provided the prerequisite of 15 GW capacity from at least three independent manufacturers is met before the list is notified.
PM Surya Ghar and Solar Expansion Context
PM Surya Ghar: Muft Bijli Yojana was launched in February 2024 with an outlay of Rs 75,021 crore, targeting installation of rooftop solar systems in 1 crore (10 million) households, providing up to 300 units of free electricity per month. The scheme requires DCR-compliant modules (domestically manufactured cells and panels). Combined with PM-KUSUM (Kisan Urja Suraksha evam Utthaan Mahabhiyan — for solar pumps and feeder-level solar for farmers) and CPSU Phase-II (Central Public Sector Undertaking scheme for government solar installations), India's domestic solar manufacturing demand pipeline is substantial. The expansion of ALMM to wafers tightens this pipeline further up the supply chain.
- PM Surya Ghar: Launched February 2024; Rs 75,021 crore; 1 crore households target; 300 units free/month
- PM-KUSUM: Solar pumps + grid-connected solar for farmers; Components A, B, C; Rs 34,422 crore outlay
- CPSU Phase-II: 12 GW government solar capacity using DCR modules
- DCR maintained: ALMM List-III does NOT relax DCR for PM-KUSUM, PM Surya Ghar, CPSU Phase-II
- Prerequisite for ALMM List-III notification: At least 3 independent wafer manufacturers with combined 15 GW/year capacity
Connection to this news: The 2028 deadline gives the industry a clear, time-bound investment horizon — but the prerequisite of three independent manufacturers with 15 GW capacity means the government needs to actively drive upstream investment through PLI or other incentives before the mandate kicks in.
Key Facts & Data
- ALMM List-III: Solar ingots and wafers; effective June 1, 2028
- Notifying body: MNRE
- Prerequisite for notification: ≥3 independent wafer manufacturers, ≥15 GW/year combined capacity
- Current India wafer/ingot capacity: ~0 GW (negligible)
- India module capacity: 64+ GW; cell capacity: ~12-15 GW
- Existing ALMM: List-I (modules, since 2021), List-II (cells)
- Basic Customs Duty: 40% on imported modules, 25% on cells (since April 2022)
- China's global wafer market share: ~90%+
- Applicability: All RE projects (net metering, open access, utility scale)
- DCR schemes unaffected: PM-KUSUM (B&C), PM Surya Ghar, CPSU Phase-II retain DCR requirements