The Indian government has reinstated the so-called Approved List of Models and Manufacturers (ALMM) mandate from April 1, 2024. This move creates a non-tariff barrier for Chinese products.
India’s Ministry of New and Renewable Energy (MNRE) has reintroduced the system ALMM mandate from April 1, 2024. Only solar products and manufacturers on the MNRE-approved ALMM are eligible for government-backed projects. The policy was introduced by the MNRE to protect the domestic industry from dumping of Chinese products.
The ALMM mandate gives domestic manufacturers the opportunity to serve a significant market by creating a non-tariff barrier for Chinese products. The ALMM includes solar panel models and manufacturers that comply with the Bureau of Indian Standards (BIS).
“The mandatory use of ALMM modules will ensure the exclusion of Chinese modules, providing a substantial boost to Indian module manufacturers,” said Tanmoy Duari, CEO of AXITEC Energy India. “This not only expands the market for Indian manufacturers but also protects them from competition with Chinese counterparts, thereby promoting indigenous solar manufacturing and innovation.”
Goldi Solar is one of the PV manufacturers listed on the ALMM stock exchange. It plans to invest in 6 GW of module production and 5 GW of cell production by 2026.
“ALMM is a leveling mechanism that provides a remarkable advantage to domestic manufacturers and promotes an enabling environment for Indian players,” said Ishver Dholakiya, Managing Director and Founder, Goldi Solar. “This presents a golden opportunity for local manufacturers, especially in two key sectors: rooftop solar and utility-scale projects.”
While exports have traditionally been a focus for major Indian PV manufacturers, the ALMM necessitates a shift towards serving the needs of the Indian market. This is because the ALMM encourages the use of domestically produced solar panels in projects.
Anurag Garg, the CEO of Jakson Solar’s module business, said domestic module manufacturing capacity was underutilized last year, even with an installed capacity of 20 GW. Now he sees no problems with the availability of modules.
Solar panel manufacturers in India are largely dependent on China for solar cells and various other components such as glass, frames, backsheets and encapsulants.
“[This] This is a step in the right direction to ensure government support and boost domestic production, ensuring minimum dependence on imports,” Garg said.
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