Recently, India’s Ministry of New and Renewable Energy (MNRE) released a new proposal planning to establish a separate Approved List of Models and Manufacturers (ALMM) for off-grid solar solutions and adjust related efficiency standards. This policy not only concerns the fate of India’s domestic photovoltaic industry but may also profoundly impact the competitive landscape of the global off-grid solar market.
The ALMM, a core mechanism established by the Indian government to regulate the photovoltaic market and promote local manufacturing, has required projects funded by the government and public funds to use components from the ALMM list since its implementation on April 1, 2024. Essentially, this policy has created a trade barrier for Indian domestic manufacturers.
MNRE’s adjustment focuses on off-grid solar applications, reducing the minimum efficiency requirement for solar lights using crystalline silicon components from 19% to 18% and adding two new ALMM categories for off-grid scenarios: Category III (DRE) for off-grid applications with a single component peak power of less than 200 watts, including solar lights, street lights, and fans, but excluding solar-powered agricultural pumps and rooftop solar systems, with a minimum efficiency of 18% set by MNRE; and Category IV for all other off-grid applications, with a recommended efficiency standard of 19% for silicon-based components and 18% for cadmium telluride thin-film components. Notably, this decision was made after repeated requests from industry stakeholders.
The new ALMM regulations undoubtedly provide a boost to Indian domestic manufacturers. For example, companies like Waaree Renewable Technologies and Tata Power Solar can gain an advantage over foreign solar components due to policy protection, thereby expanding their share in the off-grid market. However, over-reliance on protection may lead to lagging technological iteration and missed opportunities to compete with the next generation of high-efficiency technologies.
For Chinese photovoltaic enterprises, after the implementation of the new regulations, the remaining import channels (such as through joint ventures or OEM models) may further narrow. However, some companies have already adjusted their strategies: leading manufacturers like Longi, JinkoSolar, GCL, and Trina Solar are exploring cooperation with Indian domestic enterprises to circumvent trade barriers through technology licensing or joint research and development.
The introduction of the ALMM framework aims to support Indian domestic solar component manufacturers by ensuring that only listed companies’ products are used in government and government-funded projects, with the original intention of reducing the cost of off-grid devices and promoting their popularity in remote areas of India. However, it remains uncertain whether this decision will truly benefit the off-grid market. On the surface, the lowering of efficiency thresholds does provide more options for off-grid device manufacturers. However, components only account for about 30% of the total cost of off-grid systems, with the remaining 70% coming from supporting equipment such as inverters, energy storage batteries, and mounts. If the localization of these supporting equipment is insufficient or prices remain high, the benefits of reduced component costs may be diluted, limiting the actual benefits for end-users.
