The Ministry of New and Renewable Energy announced on Saturday that it has extended the exemption timeline for net-metering and open access renewable energy projects till December 31, 2026 under the ALMM-II framework. According to the ministry's statement, this extension provides a limited window for select solar projects to commission with exemption of ALMM List-II for solar PV cells, extending the previous deadline of May 31, 2026. The ministry clarified that there is no change in ALMM Policy and no blanket extension will be provided for solar power projects, as reported by NDTV Profit.
Premier Energies Ltd. shares fell as much as 6.1% to ₹1,063, while Waaree Energies declined as much as 3.8% to ₹2,733 in early trade on Monday following the government's announcement. The extension delays the implementation of the domestic sourcing requirement for eligible projects and is expected to ease installation costs stemming from limited domestic solar cell availability. The domestic sourcing rule came into effect on June 1 and requires net-metering and open-access solar power projects to use solar cells manufactured in India. The latest decision marks a change from the Centre's earlier position, as in May, the government had said it would not grant a blanket exemption and would instead consider relief only for projects that had already completed milestones such as land acquisition, financial closure and grid connectivity.
The extension is designed to provide protection for standalone solar PV module manufacturers who have already made investments in inventories. As reported by the MNRE, this move will help manufacturers by creating additional demand through the exemption period. The ministry stated that the extension will provide sufficient time for manufacturers to effectively increase their sourcing of solar cells from ALMM List-II enlisted solar cell manufacturers, as the solar cell capacity in ALMM List-II continues to rise steadily. The additional time is intended to help solar module manufacturers transition to the Approved List of Models and Manufacturers (ALMM-II) framework while domestic solar cell manufacturing capacity expands. India has a large number of solar module manufacturers, but domestic solar cell manufacturing capacity remains limited, making this extension crucial for safeguarding investments in the local supply chain.
