MNRE extends solar cell exemption to December 2026 after Karnataka High Court petition

The Ministry of New and Renewable Energy (MNRE) has extended the compliance exemption for net-metering and open-access renewable energy projects from the Approved List of Models and Manufacturers (ALMM) List-II until December 31, 2026. The decision, announced in an office memorandum on July 18, is expected to provide a significant boost to rooftop solar projects in Karnataka by easing domestic supply shortage concerns.

The federal ministry's decision follows a legal challenge initiated in the state. The Karnataka Renewable Energy Systems Manufacturers Association (KRESMA) filed a petition in the Karnataka High Court a month ago, challenging the enforcement of the ALMM List-II mandate for solar PV cells.

Under the new order, solar projects can now be commissioned without complying with the ALMM List-II requirements. Industry experts noted that the previous mandate had slowed down the progress of rooftop solar installations in Karnataka due to a severe supply-demand mismatch.

In its petition, KRESMA argued that the sourcing restrictions were being enforced despite a lack of competitive, technologically advanced domestic manufacturing capacity. The association pointed out that solar PV cell quality is already regulated under the BIS Act and mandatory BIS standards, making the additional ALMM procurement restrictions unnecessary given the current market conditions.

According to KRESMA, the domestic manufacturing capacity was unable to meet national requirements. Between 2019 and 2024, the enforcement of List-II was repeatedly deferred due to these supply shortages.

Ramesh Shivanna, the founding president of KRESMA, highlighted the financial impact of the mandate on developers. He stated that when the list was finally introduced, the listed domestic manufacturers had a combined capacity of around 30.5 GW, while the annual demand stood between 35 GW and 40 GW.

"The requirement sharply increased costs, with domestically sourced cells costing around Rs 13.50 per watt compared to approximately Rs 5.136 per watt for imports," Shivanna said.

The extension is expected to grant domestic solar PV manufacturers the necessary time to expand their production capacity while allowing renewable energy developers to continue installations without facing prohibitive costs or supply bottlenecks.