The Indian government will soon decide to impose non-tariff barriers on solar cell imports by including them in the Approved List of Models and Manufacturers (ALMM), a move that could reshape the sector by curbing Chinese imports and promoting domestic production.
Speaking to reporters, Pralhad Joshi, Union Minister for New and Renewable Energy, said on Wednesday that the ministry is actively considering the proposal.
He ALMM is a government-approved list of solar module models and manufacturers that are eligible to supply state-backed projects. In April, Mint He said that after applying the ALMM to solar modules earlier this year, the Centre is now considering similar measures for solar cells to support Indian-made alternatives.
Asked about extending the ALMM to solar cells, the minister said: “That is in the works and is being considered, and we will take a well-considered decision very soon.”
The move is aimed at reducing dependence on Chinese imports, which dominate the global solar market, and strengthening India’s domestic solar equipment industry.
The ALMM, introduced in 2021, had been put on hold till FY2024 due to low module supply and concerns over its potential to slow solar capacity additions. However, the list was reinstated in April this year. Currently, only Indian-made and locally manufactured modules are eligible for the ALMM, which has an approved solar module capacity of around 54 GW.
Key measures taken in recent years to boost domestic production include a high import duty on solar cells and modules, the ALMM and production-linked incentive (PLI) schemes designed to boost the solar module ecosystem.
As India aims to achieve 500 GW of non-fossil energy capacity by 2030, of which 292 GW is expected to come from solar energy—The country will need an annual manufacturing capacity of cells and modules of between 25 and 50 GW. Currently, India’s solar cell manufacturing capacity is just over 6 GW.
“Our installed renewable energy capacity has increased from 75.52 GW in March 2014 to 203 GW today. That is a 165% increase in 10 years. India’s progress serves as a model for other countries looking to transition to a low-carbon economy,” Joshi said at an industry event on Wednesday.
The minister highlighted the government’s commitment to expanding the use of renewable energy, improving energy efficiency and driving innovation across the energy value chain. He also invited global investors and companies in the renewable energy and green hydrogen sectors to explore the opportunities offered by India’s “evolving energy landscape.”
These efforts align with India’s broader goal of achieving 500 GW of installed non-fossil power generation capacity by 2030 and achieving net-zero carbon emissions by 2070.
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