India’s clean energy journey is often discussed through the lens of ambitious renewable energy targets, record-breaking solar installations, and climate commitments. While these achievements are important, an equally significant transformation is taking place behind the scenes—one that has the potential to redefine India’s industrial future. The Approved List of Models and Manufacturers (ALMM) mandate is emerging as a critical catalyst in this transformation.
At first glance, ALMM may appear to be a regulatory requirement aimed at promoting domestically manufactured solar products. However, its impact extends far beyond the renewable energy sector. It represents a strategic shift in India’s approach to industrial development, supply chain security, and global manufacturing competitiveness.
For many years, India successfully established itself as one of the world’s fastest-growing solar markets. Yet, much of this growth depended on imported solar cells and modules. While this enabled rapid deployment, it also exposed the sector to supply chain disruptions, price volatility, and geopolitical uncertainties. More importantly, a substantial share of the value created by India’s energy transition was flowing outside the country.
The importance of this transition becomes clearer when we look at the numbers. Until recently, more than 80% of India’s solar cell requirements were met through imports, primarily from China. While this helped accelerate project deployment, it also exposed developers to freight cost fluctuations, supply shortages, and global market volatility. As India advances toward its target of 500 GW of non-fossil fuel capacity by 2030, reducing this dependence has become a strategic necessity rather than merely an industrial objective.
The ALMM framework seeks to change this equation. By mandating the use of products from approved domestic manufacturers for government-backed and public-sector projects, India has created a more predictable demand environment that encourages long-term investment in manufacturing.
The results are already visible. India’s solar manufacturing sector has transformed dramatically over the last five years. Solar module manufacturing capacity has expanded from less than 15 GW in 2020 to nearly 210 GW by the end of 2025, while domestic solar cell capacity has reached around 27 GW, driven by policy interventions such as the PLI scheme, ALMM framework, and growing private-sector investments.
However, capacity expansion alone does not guarantee manufacturing leadership. Despite the rapid growth in modules, India continues to face a significant gap in upstream manufacturing, particularly in wafers, ingots, and polysilicon, resulting in continued dependence on imports. Cell manufacturing capacity also remains far below module capacity, creating supply-chain bottlenecks as domestic content requirements become more stringent.
The next phase of India’s solar manufacturing journey will therefore be defined not just by adding more gigawatts of capacity, but by achieving deeper vertical integration, technological competitiveness, and supply-chain resilience. As global competition intensifies and domestic capacity continues to outpace demand, manufacturers will increasingly need to focus on efficiency, innovation, and scale rather than capacity expansion alone.
Solar manufacturing is no longer just about producing modules; it encompasses advanced materials, precision engineering, automation, electronics, energy storage integration, and research-driven innovation. Countries that establish strong positions in these value chains stand to gain economically for decades.
The ALMM mandate has provided Indian manufacturers with the confidence to invest in scale. Scale matters because it directly influences production costs, operational efficiency, and global competitiveness. Large manufacturing facilities enable companies to optimize processes, invest in automation, and improve product quality while reducing costs. These are essential ingredients if India aims to become a global manufacturing hub rather than merely serving domestic demand.
Equally important is the technology transition taking place across the industry. New investments are not focused on legacy technologies but on next-generation solutions such as TOPCon and Heterojunction (HJT) cells, which offer higher efficiencies and improved energy yields.
The technology shift is happening at remarkable speed. Just a few years ago, multicrystalline modules dominated the Indian market. Today, manufacturers are rapidly transitioning toward high-efficiency TOPCon and HJT technologies, with module efficiencies exceeding 23%. This evolution demonstrates that Indian manufacturers are not simply catching up with global trends but are actively positioning themselves for the next phase of solar innovation.
Another crucial advantage of the ALMM framework is its contribution to supply chain resilience. The disruptions experienced during the pandemic and subsequent geopolitical tensions highlighted the risks associated with excessive dependence on a limited number of sourcing destinations. Energy security today is closely linked with manufacturing security. A country that relies heavily on imports for critical energy infrastructure remains vulnerable to external shocks.
By encouraging domestic production, ALMM strengthens India’s ability to build a more resilient and self-reliant clean energy ecosystem. The strategic significance of this transformation is reflected in India’s broader industrial policy framework. The Government of India has committed nearly INR 24,000 crore under the PLI scheme for high-efficiency solar PV manufacturing. These incentives are designed to support domestic capabilities across the solar value chain and attract significant private-sector investment, helping India establish a globally competitive manufacturing base.
The economic benefits extend far beyond manufacturing facilities themselves. Every new solar manufacturing plant creates opportunities across logistics, engineering services, equipment manufacturing, construction, testing, research and development, and workforce training.
Industry estimates suggest that each gigawatt of manufacturing capacity can create thousands of direct and indirect employment opportunities. As investments continue to flow into states such as Gujarat, Tamil Nadu, Andhra Pradesh, and Odisha, renewable energy manufacturing is emerging as a major contributor to regional industrial development and job creation.
However, sustaining this momentum will require continued focus on strengthening the entire value chain. While module and cell manufacturing capacities have expanded rapidly, India still depends on imports for critical upstream components such as polysilicon, ingots, and wafers. Building competitiveness at every stage of the value chain will be essential if the country wishes to compete effectively with established global manufacturing leaders.
The objective should not be permanent protection but long-term competitiveness. Policies such as ALMM are most effective when they create a foundation upon which industries can innovate, achieve scale, improve efficiencies, and eventually compete globally on their own merits. Encouragingly, the Indian solar industry appears to be moving in that direction.
The timing could not be more important. India installed nearly 25 GW of solar capacity in 2024 alone and is expected to add hundreds of gigawatts over the coming decade to meet its energy transition goals. The question is no longer whether India will deploy solar at scale; the question is how much of that value creation will remain within the country.
The ALMM framework is helping answer that question by aligning energy transition goals with industrial development objectives. If supported by continued investments in upstream manufacturing, innovation, and technology leadership, ALMM could play a defining role in transforming India from one of the world’s largest solar markets into one of the world’s leading solar manufacturing nations.
Looking ahead, the true success of ALMM will not be measured solely by the number of approved manufacturers or gigawatts of capacity installed. Its real achievement will be reflected in India’s ability to establish itself as a trusted global manufacturing destination for clean energy technologies.
The renewable energy transition is not only about generating green power. It is also about creating industries, jobs, technologies, and economic opportunities. In that context, ALMM is proving to be much more than a compliance mechanism—it is becoming an important building block in India’s broader industrial growth story.
As India advances toward its clean energy ambitions, policies that strengthen domestic manufacturing capabilities will play a decisive role in ensuring that the country’s energy transition also becomes a driver of industrial competitiveness, economic resilience, and long-term sustainable growth.
Dushyant Kumar, PV Quality Manager, AXITEC Energy India
The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.
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