Government Reimposes ALMM Order on Solar PV Modules Effective April 1

The Ministry of New and Renewable Energy (MNRE) announced on Friday its decision to reinstate the Approved List of Models and Manufacturers (ALMM) order for solar photovoltaic (PV) modules starting from April 1, 2024.

The ALMM had been suspended for the entirety of the fiscal year FY24 to alleviate pressure on solar PV manufacturers grappling with limited domestic availability. However, in February 2024, the Ministry temporarily halted the reimposition until further notice.

In its latest directive, the MNRE stated, "Each project that has received solar PV modules at the project site by March 31, 2024, and faces delays in commissioning due to reasons beyond the control of the renewable power developer, will be assessed on a case-by-case basis."

During FY24, projects commissioned by March 31, 2024, were exempted from the requirement of sourcing solar PV modules from ALMM, according to the previous order issued by the Ministry.

The ALMM order had been suspended previously due to concerns raised by developers regarding the limited domestic module manufacturing capacity, inferior quality of domestic modules compared to Chinese tier-I manufacturers, and higher prices of domestic modules.

ALMM regulations are applicable to projects sponsored or subsidized by the government, including those procuring power for self-consumption or distribution through Discoms. The list also encompasses solar PV rooftop and PM KUSUM projects, which receive subsidies. However, projects set up under open access or as captive by private entities are exempt from ALMM regulations. In essence, ALMM does not apply to individuals or entities establishing their own capacity.

HBL