The implementation of mandatory domestic sourcing requirements under the second phase of the Approved List of Models and Manufacturers (ALMM-II) from June 1 has triggered concerns among solar module manufacturers and vendors regarding the availability and pricing of solar cells. Representatives from the solar sector have engaged with officials from the Ministry of New and Renewable Energy (MNRE) both before and after the rollout of the new regulations. The discussions focused on addressing supply constraints and mitigating the potential impact on project execution and manufacturing costs.
Capacity Gap Emerges Between Module and Cell Manufacturing
A key concern highlighted by non-integrated module manufacturers and ancillary equipment suppliers is the significant mismatch between India’s solar module manufacturing capacity and domestic solar cell production capability. India currently has an estimated solar module manufacturing capacity of approximately 225 GW, including around 193 GW registered under ALMM-I. In contrast, the country’s domestic solar cell manufacturing capacity stands at only about 30 GW, creating concerns about the industry’s ability to meet rising demand under the new sourcing requirements. Industry stakeholders argue that this imbalance could lead to supply shortages and increased procurement costs, particularly for manufacturers that do not produce solar cells in-house.
Manufacturers Expect Capacity Expansion to Ease Concerns
Despite these concerns, solar cell manufacturers remain optimistic about the market outlook. Industry players have stated that current production levels are adequate to meet near-term demand and that several new manufacturing facilities are expected to become operational in phases through December 2026. These capacity additions are anticipated to significantly strengthen domestic cell availability and support the growing requirements of India’s rapidly expanding solar sector. Industry experts believe that projects requiring domestically sourced content are unlikely to face major supply disruptions during calendar year 2026.
Government Maintains Policy Stability While Offering Limited Relief
Several industry representatives sought a broader extension of the ALMM-II implementation timeline to allow manufacturers more time to adapt to the domestic sourcing requirements. However, the Ministry of New and Renewable Energy opted against granting a blanket postponement. Instead, the ministry provided conditional exemptions for select projects while reaffirming its commitment to policy stability and long-term growth of India’s domestic solar manufacturing ecosystem. The government’s approach reflects its broader objective of strengthening supply chain resilience and advancing the country’s vision of achieving greater self-reliance in renewable energy manufacturing.
High-Efficiency Solar Cells Remain a Key Challenge
Another concern raised by industry stakeholders relates to the availability of high-efficiency solar cells, which account for a substantial portion of market demand. The Rajasthan Solar Association noted that not all existing domestic cell manufacturing capacity is geared toward producing high-efficiency cells. As a result, certain project developers and module manufacturers may continue to face procurement challenges even as overall production capacity expands. This highlights the need for continued investment in advanced solar cell technologies to support India’s evolving renewable energy market.
Domestic Solar Cell Capacity Expected to Triple
According to estimates from the Indian Solar Manufacturers Association (ISMA), demand for domestically manufactured solar cells is expected to remain in the range of 22–25 GW during calendar year 2026. At the same time, the association projects that India’s solar cell manufacturing capacity could expand dramatically to nearly 103 GW by the end of 2026, more than tripling current capacity levels. If these expansion plans materialize as expected, the domestic industry could significantly reduce supply bottlenecks while strengthening India’s position as a major global solar manufacturing hub.
Balancing Localization Goals with Industry Growth
As India accelerates its renewable energy transition, the implementation of domestic sourcing norms marks an important step toward building a robust and self-reliant solar manufacturing ecosystem. However, industry stakeholders emphasize that ensuring adequate availability of high-quality solar cells, maintaining competitive pricing, and supporting capacity expansion will be critical to sustaining growth across the solar value chain. As reported by moneycontrol.com, with substantial investments underway and new manufacturing facilities expected to come online over the coming months, the sector remains optimistic that domestic production will gradually align with the country’s ambitious solar deployment targets.

1,true,6,Contact Email,21,false,1,First Name,21,false,1,Last Name,2


518, Crystal Paradise, Dattaji Salvi Marg, Off. Veera Desai, Opp. Skoda Showroom, Mumbai-53 Maharashtra, India
Phone : 022 46067132 
Email: chemindigest@gmail.com
Website: www.chemindigest.com

source