India is planning a major policy shift in its solar manufacturing sector, aimed at strengthening domestic production across the entire value chain. The government is looking to expand the Approved List of Models and Manufacturers (ALMM) framework to include solar wafers, taking a step toward building a complete end-to-end local manufacturing ecosystem.
While the move has been welcomed, industry experts have raised some serious concerns. The biggest challenge lies in India’s current wafer manufacturing capacity, which remains extremely limited. By the end of 2025, the country’s wafer production capacity stood at around 2 GW, compared to nearly 210 GW for solar modules and about 27 GW for solar cells. This significant gap in capacity is seen as a major hurdle.
New ALMM Rule
Under the proposed changes, a new “List III” will be introduced specifically for wafer manufacturers. The government aims to implement this rule fully by June 2028. Once enforced, solar projects may be required to source wafers, cells, and modules only from manufacturers listed under ALMM.
One of the key goals of this policy is to reduce reliance on imports and boost domestic production. However, achieving this will not be easy. Wafer manufacturing requires high investment, advanced technology, and considerable time. Experts warn that if capacity is not scaled up quickly, it could lead to supply chain disruptions and delays in project execution.
Additionally, the new rules could impact the project bidding process. Developers may face increased pressure if they are required to procure components only from ALMM-listed suppliers within strict timelines.
Overall, this initiative is seen as a significant step toward making India’s solar industry more self-reliant and robust. However, its success will largely depend on how quickly manufacturing capacity expands, how much investment flows into the sector, and how effectively the industry prepares for these changes.