ALMM Is Back - MNRE Streamlines PV Modules Procurement

The Ministry of New and Renewable Energy has reinstated the Approved List of Models & Manufacturers (ALMM) for solar modules, effective from April 1, 2024.  After putting the ALMM order on hold for the entire fiscal year of 2023-24, this decision was made to offer respite to domestic solar PV manufacturers facing challenges due to limited availability.

About ALMM 

Approved List of Modules & Manufacturers (ALMM) by the Ministry of New and Renewable Energy (MNRE) is a list of solar module manufacturers and their products that meet certain criteria set by MNRE for government-sponsored solar projects and Subsidies aimed at promoting solar in India.These solar PV modules have been tested and approved for quality, reliability, and performance by recognized testing agencies or laboratories. 

Temporary Suspension & Now Reinstatement

In February 2024, the Ministry temporarily suspended the reinstatement of the ALMM order until further notice. The ALMM order was suspended after developers voiced concerns regarding its implementation, citing insufficient domestic Solar PV module manufacturing capacity, inferior quality when compared to those from Chinese tier-1 manufacturers, alongside higher pricing for domestic solar PV modules.

However, as developers extensively utilized the exemption granted last year to import modules until March of this year. As of December 2023, India's combined capacity for manufacturing solar PV modules had reached 64.5 GW, while the manufacturing capacity for solar cells stood at 5.8 GW, as reported by Mercom India Research. So, the government has ultimately concluded that the current inventory and forthcoming capacity expansions within the country will adequately meet domestic demand.

Scope and Application of ALMM

The ALMM is relevant to projects that receive sponsorship or subsidies from the government. It extends to government entities or their agencies procuring electricity for internal consumption or distribution through DISCOMs to the public. Additionally, the ALMM encompasses subsidized initiatives such as solar PV rooftop and PM KUSUM projects.

The exemption previously granted to open access/captive projects and non-subsidized rooftop solar projects has been removed. This implies that starting April 1, the ALMM will now also apply to developers engaged in open access projects and even unsubsidized rooftop solar projects and these projects will need to comply with DCR requirements.

Check  the ALMM order  - Click Here

Exemptions and Relaxations For Project Developers

The relaxation in ALMM criteria hasn't been explicitly outlined. However, it's noted that for projects where solar PV modules have been delivered to the project site by March 31, 2024, but couldn't be commissioned by that date due to circumstances beyond the project developer's control, the ministry will review such cases individually.

Conclusion

the reinstatement of the Approved List of Models & Manufacturers (ALMM) by the Ministry of New and Renewable Energy (MNRE) marks a significant step towards ensuring the quality and reliability of solar modules in India's renewable energy landscape. After a temporary suspension, MNRE's decision to reintroduce the ALMM from April 1, 2024, underscores its commitment to supporting domestic solar PV manufacturers while maintaining high standards in the industry.

With the ALMM in place, government-sponsored solar projects and initiatives will benefit from the assurance of tested and approved modules, promoting sustainable energy practices nationwide. Moreover, the removal of exemptions for certain projects signals a more inclusive approach, ensuring that all developers adhere to the ALMM requirements. As India continues to expand its solar capacity, the ALMM serves as a cornerstone for fostering a resilient and vibrant solar energy sector.

Read Also : Check Latest ALMM List Here