What is the ALMM overhaul planned from 2027?

From January 2027, the Ministry of New and Renewable Energy (MNRE) plans to revise the Approved List of Models and Manufacturers (ALMM) by introducing higher minimum efficiency thresholds for solar PV modules used in utility-scale, rooftop, off-grid, and other applications, with further tightening proposed from 2028 to phase out low-performing technologies.

Why is India increasing solar module efficiency norms under ALMM?

India is increasing ALMM efficiency norms to align with global technology trends, ensure use of commercially available high-efficiency modules, improve project output per panel, reduce land requirements, and enhance export competitiveness of domestic manufacturers while supporting its 500 GW non-fossil energy target by 2030, including a large share from solar.

How much will solar module efficiency thresholds increase from 2027?

Draft proposals indicate that minimum efficiency requirements for modules enlisted in ALMM will increase by about 1 percentage point or more from January 1, 2027, with an additional increase of around 0.5 percentage points from January 1, 2028, across categories such as utility-scale, rooftop, pumping, and off-grid modules.

What technologies are likely to meet the new ALMM efficiency norms?

High-efficiency technologies such as mono PERC, bifacial modules, n-type TOPCon, and heterojunction (HJT) are expected to play a major role in meeting the revised ALMM efficiency benchmarks, as they can deliver efficiencies above the current average levels of around 20–21 percent for crystalline silicon modules.

How will higher efficiency norms impact existing ALMM-listed modules?

Modules already listed in ALMM that do not meet the revised efficiency thresholds after the effective dates are expected to be removed from List-I, pushing manufacturers to upgrade cell and module technologies and modernize production lines to remain compliant with the new standards.

What benefits will higher-efficiency solar modules bring to projects?

Higher-efficiency modules improve energy yield per panel, enhance overall plant performance, reduce land footprint for utility-scale projects, and help lower the levelized cost of electricity by producing more power from the same area and balance-of-system infrastructure.

How does the ALMM overhaul support India’s climate and energy targets?

Strengthening ALMM efficiency norms supports India’s objectives of achieving 500 GW of non-fossil fuel capacity by 2030 and progressing toward long-term net zero goals by ensuring that new solar capacity relies on high-quality, high-yield modules that maximize clean generation and reduce dependence on fossil fuels.

What challenges could manufacturers face due to higher ALMM norms?

Manufacturers may face short-term challenges such as capital investments in new cell technologies, production line upgrades, access to high-quality raw materials, and the need for process optimization and skill development to consistently achieve higher efficiency levels at scale.

Govt Plans Major ALMM Overhaul with Higher Solar 2027

Govt Plans Major ALMM Overhaul with Higher Solar Module Efficiency Norms from 2027

The Indian government has announced plans to revamp the Approved List of Models and Manufacturers (ALMM) to impose higher efficiency norms on solar modules, starting from 2027. This strategic move is aimed at boosting the domestic solar industry, enhancing energy production, and making solar energy a more viable and sustainable source of power for the country’s future energy needs.

As part of India’s commitment to meeting its climate goals and expanding the share of renewable energy in its overall energy mix, the overhaul of ALMM is expected to address growing concerns around the quality, performance, and efficiency of solar panels used in large-scale solar projects. By raising the efficiency standards, the government is looking to improve the competitiveness of Indian-made solar modules both domestically and internationally.

Why the Overhaul?

India has rapidly expanded its solar energy capacity over the last decade, with the aim to achieve 500 GW of non-fossil fuel capacity by 2030, including a large contribution from solar power. However, as the country continues to ramp up its renewable energy capacity, concerns about the quality and reliability of solar modules have surfaced, particularly around the long-term performance and efficiency of panels deployed in large projects.

Currently, the ALMM helps maintain a baseline standard by ensuring that only certified manufacturers and models are eligible for government-backed solar schemes, but it has been criticized for not keeping pace with rapid technological advancements in solar cell and module design. By revising efficiency norms, the government aims to enhance the overall performance of solar power plants, increase energy generation per panel to reduce land requirements, and support technological innovation in the domestic solar manufacturing sector.

What Changes Are Expected?

From 2027, solar module manufacturers will need to meet higher minimum efficiency thresholds to qualify for inclusion in ALMM, with draft proposals suggesting an increase of about 1 percentage point in 2027 and another 0.5 percentage point in 2028 for different module categories. These benchmarks are designed to ensure that ALMM reflects commercially available high-efficiency modules and to gradually remove outdated, low-performing technologies from the domestic market.

Experts expect that high-efficiency mono PERC, bifacial, TOPCon, and heterojunction modules, which can reach efficiencies above 20 percent, will play a larger role in meeting the revised criteria and lowering the levelized cost of electricity by producing more energy from the same area. The government is also expected to work closely with the industry by encouraging R&D investments, supporting manufacturing upgrades, and promoting partnerships that can bring advanced solar technologies into India.

Impact on the Solar Market

Technological boost for domestic manufacturers

Indian manufacturers are likely to benefit from policy signals that favor high-efficiency technologies, which encourage them to modernize production lines and adopt globally competitive cell architectures such as n-type TOPCon and bifacial designs. This shift can raise product quality and reliability across the market, helping domestic players position themselves better in both local and export markets.

Increased competitiveness and cost reduction

Higher efficiency norms can intensify competition between domestic and international manufacturers, driving innovation and potentially putting downward pressure on module prices over time. As more energy is generated per panel and per unit of balance-of-system cost, projects can achieve lower levelized costs of electricity, improving the economics of solar for utilities, businesses, and consumers.

Better energy output and sustainability

With higher-efficiency modules, developers can generate more power from the same land parcel, improving land-use efficiency—a critical factor for large solar parks and land-constrained sites. This supports India’s broader sustainability goals by maximizing clean energy output and reducing pressure to expand into new land areas for solar deployment.

Challenges Ahead

While the overhaul is positive for long-term performance, manufacturers may face significant transition costs as they invest in new technologies, upgrade production equipment, and requalify products to meet the new benchmarks, which could temporarily increase costs. Access to high-purity silicon, advanced glass, and other specialized materials required for high-efficiency modules may also strain supply chains and influence pricing.

Additionally, developers and EPC contractors will need time to adapt designs, procurement strategies, and workforce skills to fully leverage higher-efficiency products in project implementation. An effective transition will likely require coordinated efforts between policymakers, manufacturers, testing agencies, and project developers to avoid bottlenecks or slowdowns in project execution.

Looking Ahead

India’s solar energy sector is entering a transformative phase, with the planned ALMM overhaul representing one of the most significant updates to quality and performance standards since the mechanism was introduced. By tightening efficiency norms from 2027 onward, the government signals a clear preference for high-performance modules that can support a reliable, cost-effective, and sustainable solar build-out.

As technology continues to advance and global demand for renewable energy grows, Indian manufacturers that successfully transition to next-generation module technologies will be better positioned to serve both domestic and international markets. This alignment of industrial policy, energy security, and climate objectives can help India strengthen its role as a leading player in the global clean energy landscape.

Conclusion

The government’s planned overhaul of ALMM with higher efficiency norms marks a critical step toward improving the performance and reliability of solar energy systems in India, while supporting long-term climate and energy security goals. Over the coming years, increased investments in advanced technologies, innovation, and manufacturing capacity are expected to pave the way for a more efficient, competitive, and environmentally responsible solar sector.

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