India Set To Bring Back ALMM Requirement By April 2024

MNRE Firm On ALMM Imposition, But Provides Exemption To Projects On Use Of Imported Solar Modules

India Set To Bring Back ALMM Requirement By April 2024

MNRE and Power Ministry, headed by RK Singh (in the picture), will bring back the ALMM as scheduled. (Photo Credit: Press Information Bureau, Government of India)

  • MNRE plans to re-impose ALMM with effect from April 1, 2024, after providing an exemption of 1 year 
  • It will be applicable for all solar projects sponsored or subsidized by the government 
  • Exemption will be provided to projects at an advanced stage of construction with module orders placed before March 31, 2024 

India is expected to see a surge of solar installation activity this year after the government announced it will exempt projects at an advanced stage of construction from sticking to the Approved List of Models and Manufacturers (ALMM) List 1. 

Such projects will be granted relief provided the developers have placed their module orders before March 31, 2024. Additionally, such projects should have the irrevocable letter of credit (LC) opened before the deadline of March 31, 2024, subject to verification. 

Through ALMM, India aims to support domestic solar PV manufacturing since it includes only locally produced modules to be used for solar energy projects backed by the government. 

ALMM will be back to being imposed on solar projects sponsored or subsidized by the government, including the PM KUSUM and solar PV rooftop schemes. These will apply to all projects from which the government or its agencies will procure power for their own consumption or for distribution to the people via discoms, explained the Ministry of New and Renewable Energy (MNRE). 

It further clarified that the ALMM will not apply to projects set up under open access or as captive by private parties. “In other words, ALMM will not be applicable for people who set up their own capacity,” reads the ministry’s notice. 

The ministry’s clarification puts an end to rumors of the government extending the ALMM deadline by another year. MNRE boss RK Singh had announced an exemption of 1 year from using solar modules listed in the ALMM for government projects to boost solar installations (see India Provides Relief From ALMM Obligation). 

Supported by the global drop in module prices, India’s imports of Chinese modules in Q4/2023 was a total 9 GW, making up 62% of the country’s annual import volume of 14.5 GW, according to InfoLink Consulting. Analysts believe this surge is due to developers stockpiling before the ALMM is back in force, which should increase given the MNRE’s exemption (see China Exported 208 GW Solar Modules Globally In 2023). 

About The Author

Anu Bhambhani

Senior News Editor: Anu Bhambhani is the Senior News Editor of TaiyangNews. --Email : [email protected] --

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