The Ministry of New and Renewable Energy has extended the deadline for using imported solar cells in open access and net metering projects until December 2026. This seven-month extension provides relief to commercial and industrial solar developers facing supply constraints while maintaining the long-term focus on local manufacturing mandates.
The Ministry of New and Renewable Energy has issued an order extending the exemption for using imported solar cells in open access and net metering projects. Developers now have until December 2026 to complete projects using non-ALMM (Approved List of Models and Manufacturers) cells, effectively providing a seven-month grace period after the initial exemption expired on May 31.
Strategic Impact on Renewable Projects
This policy update is significant for the commercial and industrial (C&I) solar segment, which has become a major driver of capacity addition in India. In the fiscal year 2026 alone, this segment contributed 15 GW out of the 44.61 GW of solar capacity added across the country. By allowing the use of imported cells for these specific project categories, the government aims to prevent project delays that could have stemmed from immediate supply shortages or logistical challenges associated with transitioning to domestic-only sourcing.
Balancing Manufacturing and Development
While the mandate to use locally produced solar cells under the ALMM-II list remains the core long-term policy, this extension serves as a transition measure. The government's decision acknowledges the current state of the domestic manufacturing supply chain. As of the end of March 2026, India reached a significant milestone with 172 GW of solar module manufacturing capacity. However, balancing the rapid growth of installed capacity with the availability of locally produced cells remains a key challenge.
By providing this window, the ministry intends to protect capital investments made by module manufacturers who hold existing inventories, while simultaneously ensuring that developers have a predictable timeframe to align their procurement strategies with domestic suppliers. The move effectively supersedes earlier, more limited case-by-case exemptions, creating a uniform standard for all open access and net metering projects through the end of 2026.
Investor Monitorables
The shift in deadlines suggests a cautious approach by regulators to avoid disrupting the momentum of India’s solar capacity expansion. Investors should track the pace of domestic cell production ramp-ups as the December 2026 deadline approaches. The ultimate benefit to domestic manufacturers versus the cost burden on project developers will depend on how quickly local suppliers can stabilize both the pricing and availability of high-efficiency solar cells that meet the ALMM-II quality standards.