The Indian government is significantly strengthening its domestic solar supply chain by expanding the Approved List of Models and Manufacturers (ALMM) to include solar ingots and wafers. Effective June 1, 2028, the Ministry of New and Renewable Energy (MNRE) will require new project bids to source these essential components from certified domestic producers. This strategic move aims to eliminate heavy reliance on imported materials, particularly from China, while fostering a self-reliant manufacturing ecosystem. Industry experts anticipate the policy will trigger substantial investments, potentially reaching $5.4 billion over the next three years.
The Ministry of New and Renewable Energy (MNRE) has officially broadened the scope of its ALMM framework, adding solar ingots and wafers to the existing requirements for solar modules and solar cells. Under the new directive, any project bids submitted more than seven days after the publication of the initial ALMM List-III for wafers must utilize components from approved manufacturers. This mandate is designed to create a fully integrated domestic production line, ensuring that solar modules, solar cells, and the wafers used to create them are all sourced from vetted local facilities.
The rollout of the specific wafer manufacturer list, known as ALMM List-III, is contingent upon the development of the domestic industry. The MNRE will only issue the list once at least three independent manufacturing plants are operational within India, reaching a cumulative annual capacity of at least 15 GW. Furthermore, companies applying for inclusion in this list must demonstrate that they possess equivalent ingot manufacturing capabilities, ensuring vertical integration within the supply chain.
This policy shift addresses a critical vulnerability in India’s renewable energy sector. Currently, the nation depends almost entirely on imports for its solar wafer supply, leaving projects exposed to international trade disruptions, currency fluctuations, and supply chain bottlenecks. By mandating local sourcing, the government intends to insulate the industry from the dumping of low-cost foreign products and encourage long-term stability.
Industry leaders have hailed the decision as a transformative step for the sector. Vinay Rustagi, chief business officer at Premier Energies, noted that the move could catalyze approximately INR 500 billion ($5.4 billion) in new investments within the next three years. Premier Energies has already signaled its commitment by announcing plans for a 10 GW ingot-wafer production facility to meet the upcoming demand.
The new regulations include specific exemptions to ensure a smooth transition for the market. Projects that were bid out on or before the cut-off date—defined as one week after the first wafer list is released—will not be subject to the new wafer requirements, regardless of when they are eventually commissioned. However, all subsequent tenders must explicitly state the need for ALMM List-III compliance to remain eligible for government-backed initiatives.
Prashant Mathur, CEO of Saatvik Green Energy, described the expansion as a watershed moment for the industry. He emphasized that the policy rewards companies that invested early in end-to-end manufacturing and reinforces India’s ambition to dominate its own energy transition. The move is expected to not only enhance energy security but also generate a significant number of high-skilled manufacturing jobs across the country.