Made-in-India Rule Enforced for Solar Projects

New Delhi: A major change in India’s solar sector has come into force. From now on, solar projects connected through net-metering and open-access arrangements can use only domestically manufactured solar cells. The government says the move will strengthen India’s solar manufacturing ecosystem and reduce dependence on imports, particularly from China.

But for consumers, developers and hundreds of smaller manufacturers, the transition may not be painless.

The immediate impact is likely to be higher installation costs, tighter supply and increased pressure on companies that depend on imported solar cells.

To understand the new rule, it helps to know how a solar panel is made.

The manufacturing chain starts with polysilicon, which is converted into ingots and wafers. These wafers are then used to manufacture solar cells — the component that converts sunlight into electricity. Multiple cells are assembled into a solar module, or the panel that consumers see on rooftops.

India already required developers to use domestically manufactured solar modules. From June 1, the rule goes a step further.

Now, the cells inside those panels must also come from government-approved Indian manufacturers under the Approved List of Models and Manufacturers (ALMM) List-II framework.