Shares of leading Indian solar energy companies, including Waaree Energies Ltd, Premier Energies Ltd, and Emmvee Photovoltaic Power Ltd, experienced a significant surge of approximately 4% each in Tuesday's trading. The rally followed an announcement from the Ministry of New & Renewable Energy (MNRE) regarding the implementation of the Approved List of Models and Manufacturers (ALMM) policy.
Mandatory Domestic Sourcing for New Solar Projects
The MNRE clarified that there would be no blanket extension for ALMM List II beyond June 1, 2026. This means that all net-metering projects and Open Access Renewable Energy (RE) power projects commissioned on or after this date will be required to source their solar PV modules from ALMM List-I and solar PV cells from ALMM List-II. This strategic move is designed to create a protected and prioritized market for domestic solar manufacturing in India.
Following the ministry's announcement, Waaree Energies shares rose 3.92% to ₹3,102, Premier Energies gained 4.12% to ₹1,024.75, and Emmvee Photovoltaic Power saw a 4.25% increase, reaching ₹302.35.
Boosting India's Solar Manufacturing Capacity
India initially introduced ALMM-I, making domestic modules compulsory for most solar projects, effective April 1, 2024. This policy aimed to leverage the strong growth in domestic module manufacturing capacity seen in the preceding fiscal year. The government later proposed ALMM-II, which mandates the use of domestically produced cells in locally assembled modules, to be implemented from June 2026. This effectively makes Domestic Content Requirement (DCR) modules mandatory across all solar capacities.
Industry analysts, such as JM Financial, noted in an April report that the implementation of ALMM List-II for solar PV cells from June 2026 has already spurred significant expansion of cell manufacturing capacity by module producers within India. The government's broader push includes mandating India-made wafers under the ALMM starting June 1, 2028, further accelerating the creation of domestic manufacturing capabilities across the entire solar value chain.
Policy Stability and Investment Protection
The MNRE emphasized that it engaged extensively with industry representatives, including both solar PV manufacturers and power developers. The ministry reported a broad consensus on the importance of maintaining policy stability to ensure long-term investor confidence in the solar PV manufacturing sector.
While upholding the policy, the MNRE also acknowledged the need to protect actual investments already made by RE power developers. The ministry stated that "Bonafide cases where solar modules have already arrived at the project sites, installation completed but not commissioned, or effective steps have been undertaken by the RE power developers towards grounding the projects, merit some protection of investment already made, on a case-by-case basis." This indicates a balanced approach to policy enforcement and investor safeguarding.