India tightens solar sourcing rules

India’s solar buildout is running into a new bottleneck: from June 1, many projects must use domestically approved solar cells, but local supply is still short. (pib.gov.in 1) (pib.gov.in 2) India’s Ministry of New and Renewable Energy said in December 2024 that solar modules used in government-backed schemes, net-metering projects and open-access projects would need cells from ALMM List-II starting June 1, 2026. (pib.gov.in) The ministry later amended the process in July 2025, saying ALMM-listed cells would become mandatory one month after the first cell list was published, while keeping the June 1, 2026 compliance date for projects commissioned from then onward unchanged. (pib.gov.in) ALMM is India’s approved list of solar equipment makers. List-I covers modules, and List-II covers cells, the wafer-thin components inside a panel that convert sunlight into electricity. (mnre.gov.in) That distinction matters because India already pushed projects toward locally approved modules, but many of those modules still relied on imported Chinese cells. The new rule closes that gap by forcing domestic sourcing deeper into the supply chain. (energy.economictimes.indiatimes.com) (mnre.gov.in) Reuters reported on April 21 that the North India Module Manufacturer Association warned the ministry of a severe shortage. Its April 7 letter said India has about 25.6 gigawatts of cell capacity against demand of roughly 50 gigawatts. (energy.economictimes.indiatimes.com) The same letter said more than 90% of India’s solar cell demand is currently met by imports from China. It also said about 55% of domestic cell output uses older technology that is rarely used in new projects. (energy.economictimes.indiatimes.com) Manufacturers asked for a phased rollout after June, arguing that nearly 50 gigawatts of new cell capacity under construction could come online within a year. The ministry did not respond to Reuters’ request for comment. (energy.economictimes.indiatimes.com) The government’s own ALMM page shows the first cell list was issued on July 31, 2025 and updated again on April 13, 2026. That means the approved domestic supply base is growing, but still from a much smaller starting point than module manufacturing. (mnre.gov.in) PV Tech reported on April 14 that the latest ALMM List-II revision expanded approved cell capacity to 27.753 gigawatts from 26.477 gigawatts, and added heterojunction cells for the first time through Reliance Industries. (pv-tech.org) India’s solar market is large enough that even a modest supply mismatch can ripple quickly. The Ministry of New and Renewable Energy says the country added 44.614 gigawatts of solar in fiscal 2026 and had 150.26 gigawatts installed as of March 31, 2026. (mnre.gov.in) So the immediate question is not whether India wants a domestic solar supply chain. It is whether cell factories can scale fast enough for June without slowing the projects the policy is meant to support. (pib.gov.in) (energy.economictimes.indiatimes.com)