Overview
- The government put the rule into effect on June 1, 2026, forcing net‑metering rooftop systems and open‑access commercial and industrial projects to use solar cells made by manufacturers on the ALMM List‑II.
- India faces a large shortfall of cells because domestic cell capacity is about 25–30 GW a year while annual demand is roughly 50 GW, leaving many modules dependent on imports until new factories come online.
- Industry groups warn the change will raise upfront costs, estimating rooftop systems could become about Rs 3,000 more per kilowatt, or roughly Rs 15,000 extra for a typical 5 kW home installation.
- Smaller standalone module assemblers and ancillary suppliers that rely on imported cells are likely to face tight supplies and pricing pressure, while larger integrated cell‑and‑module firms may gain share; many utility‑scale projects awarded before August 31, 2025, are exempted, easing immediate demand.
- Solar panels are built from wafers into cells and then into modules, and policy backers say tightening cell sourcing is meant to create a full domestic supply chain that attracts investment and reduces long‑term dependence on Chinese imports even as short‑term disruption is expected.