Overview
- A new rule that took effect Monday, June 1 requires solar projects using net‑metering and open‑access to install panels whose solar cells are manufactured by Indian firms listed on ALMM List‑II.
- The mandate covers rooftop systems including beneficiaries of the PM Surya Ghar subsidy and commercial or industrial open‑access projects, while many utility‑scale projects awarded before August 31, 2025 are exempted.
- India has built about 200 GW of module assembly capacity but makes only around 25–30 GW of cells each year, and historically more than 90% of cells were imported, creating a large short‑term supply gap.
- Industry estimates say rooftop installation costs could rise by roughly ₹3,000 per kW (about ₹15,000 for a typical 5 kW system) and that smaller standalone module assemblers may struggle to secure domestic cells, raising the risk of consolidation.
- Supporters say the policy gives certainty to attract billions in factory investment, and the near‑term things to watch are new cell plant announcements, changes in cell prices, and stricter compliance checks for subsidy programs.