10 Things To Know About the Karnataka High Court Case Against ALCM – Saur Energy

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The implementation of the Approved List of Models and Manufacturers (ALMM) List-II for solar cells from June 1, 2026, has landed before the Karnataka High Court, with multiple renewable energy industry associations challenging the Ministry of New and Renewable Energy’s (MNRE) decision.
The petition, filed by the Karnataka Renewable Energy Systems Manufacturers Association (KRESMA), Kerala Renewable Energy Entrepreneurs and Promoters Association (KREEPA), and Tamil Nadu Solar Energy Developers Association (TNSEDA), does not seek the scrapping of ALMM itself. Instead, it questions whether India is ready for mandatory sourcing of solar cells exclusively from ALMM-listed manufacturers.
Here are 10 key things to know about the case:
The petitioners have explicitly stated that they are not opposed to the ALMM framework. Their challenge is limited to the implementation of ALMM List-II for solar cells from June 1, 2026, arguing that domestic supply is not yet sufficient.
The associations have asked the court to direct MNRE to defer enforcement of ALMM List-II until domestic manufacturing capacity can adequately meet national demand for solar cells.
According to the petition, India currently has around 30.5 GW of ALMM-listed solar cell manufacturing capacity against an annual demand estimated at 45-50 GW. The petition argues that this mismatch makes immediate enforcement impractical.
The petition claims that while overall listed capacity appears significant, commercially available TOPCon cell capacity—the technology increasingly preferred for utility-scale projects—is concentrated among only a few manufacturers and remains insufficient for market demand.
Petitioners argue that imported solar cells currently available at around ₹5.36 per watt are being replaced by domestic ALMM-listed cells priced at around ₹12 per watt, potentially increasing project costs significantly.
A major argument in the petition is that MNRE repeatedly deferred ALMM List-II implementation between 2019 and 2025, citing insufficient domestic manufacturing capacity. The associations contend that the ministry’s own previous assessments acknowledged supply constraints.
The petition specifically challenges MNRE’s May 25, 2026 Office Memorandum, which rejected a blanket extension and instead offered project-specific relief through a case-by-case evaluation process.
The associations argue that the extension mechanism lacks transparency because applications are to be reviewed by an Expert Committee whose composition, evaluation criteria and decision-making framework have not been publicly disclosed.
The petition points to a Finance Ministry memorandum that treated the West Asia geopolitical situation as a force majeure event and allowed extensions of certain contractual obligations. Petitioners argue that similar flexibility should have been considered for ALMM compliance timelines.
The case comes at a critical point for India’s solar manufacturing industry. While large integrated manufacturers have broadly welcomed the rollout of ALMM List-II, developers, EPC contractors and several module manufacturers argue that the transition is occurring before sufficient domestic cell capacity has been established. The court’s eventual decision could influence how India balances localization goals with project execution realities during the next phase of solar sector growth.
The petition is among the most comprehensive legal challenges yet mounted against the implementation timeline of ALMM List-II and is likely to be closely watched by developers, manufacturers and policymakers alike as India pushes toward greater self-reliance in solar manufacturing.
Ramesh Shivanna, Director of Sadbhavana Ventures from Bengaluru told Saur Energy that the case was primarily filed on the ground that the industry is now reeling under the deficit of domestic solar cells which neither matches quality and price of imported solar cells. “We are demanding a deferrement of the order. The ongoing higher prices of DCR cells have made the issue complex.”
Till now no hearing before the HC has been undertaken but the associations are hopeful of an intervention from the judiciary in this case. 
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