- Why in news
- On 18 July 2026 the Ministry of New and Renewable Energy extended, till 31 December 2026, a limited exemption from ALMM List-II (solar PV cells) for net-metering and open access solar projects. The earlier deadline was 31 May 2026.
- What it is
- ALMM is a list of approved models and manufacturers of solar products kept by MNRE. Projects under government-linked schemes must use listed makers. List-I covers solar PV modules and List-II covers solar PV cells. It is meant to build domestic manufacturing and keep quality up.
- New deadline
- Net-metering and open access solar projects can commission without ALMM List-II (cells) till 31 December 2026.
- Earlier deadline
- The earlier dispensation for this segment ran only till 31 May 2026.
- Policy stance
- The policy on List-II is unchanged and there is no blanket extension for solar power projects.
- Who gains
- Standalone module makers get protection for inventories already built, through added demand, and time to shift to cells from List-II makers.
- Who runs ALMM
- ALMM is issued by the Ministry of New and Renewable Energy.
Don’t confuse with ALMM List-I vs List-II: List-I covers solar PV modules. List-II covers solar PV cells, the input used to make modules.
Don’t confuse with Net-metering vs open access: Net-metering lets a consumer export surplus rooftop power to the grid and offset the bill. Open access lets a consumer buy power from a third-party generator through the grid.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Keeps pressure on domestic cell manufacturing and cuts import dependence, in line with Atmanirbhar goals.
- Gives a phased transition that protects module makers' inventories.
Problems
- Domestic cell capacity is still short of demand, so strict rules can raise project costs.
- Repeated extensions can weaken investment signals for cell makers.
Way forward
- Expand cell capacity, for example through PLI support, and then enforce List-II firmly.
- Announce clear timelines so developers and manufacturers can plan.
Put in your answer
Self-reliance in solar: The Government says it is committed to making India self-reliant in solar PV manufacturing and a major player in the global value chain.
Stakeholder consultation: The decision followed detailed deliberations with industry stakeholders to ensure a smooth transition.
- 2015Mains GS3 · Q9Reasons for falling solar equipment costs and tariffs; thermal implications.
- 2020Mains GS3 · Q16Benefits of solar electricity over conventional generation; government initiatives.
- 2025Mains GS3 · Q12PLI scheme rationale, achievements, and ways to improve it.
- 2016Prelims Q36Net metering context: promoting household solar energy production and use.
- 2014Prelims Q7Photovoltaic vs solar thermal technologies and India's manufacturing base.
- 2025Prelims Q70PM Surya Ghar scheme targets, training, and skilling statements.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Lasting solar manufacturing policy with a changed deadline. Economy is 13% of Prelims questions, but this is a narrow rule update.
Worth revising until Prelims 2028: most news questions come within two years of the event.