MNRE Just Clarified ALMM List-II Rules for Rooftop Solar. What Changed on August 4 and What Did Not.
On August 4, 2026, the Ministry of New and Renewable Energy issued an Office Memorandum that most homeowners and even a fair number of installers have not heard about. It clarifies exactly which rooftop solar projects must comply with the new ALMM List-II cell rule, which are exempt, and until when. If you are planning a rooftop installation, waiting on a net metering connection, or somewhere in the middle of a PM Surya Ghar application right now, this memo directly affects whether your panels qualify. Here is what it actually says.
First, a Quick Explanation of What ALMM List-II Even Is
Before the memo makes sense, the two-list system needs a one-minute explanation.
ALMM List-I covers finished solar panels, which are the modules you see on a rooftop. This list has been around since 2019 and is not new. If a panel model is on List-I, it is an MNRE-approved module.
ALMM List-II covers the solar cells used in those panels. This list is new. It came into force on June 1, 2026, and it says that for most government-linked projects, the cells inside your ALMM List-I module must also come from an approved Indian solar cell manufacturer.
The two lists work together now. A panel on List-I that uses imported Chinese cells is no longer fully compliant for subsidy-eligible projects. MNRE has also created a sub-list called ALMM List-I(a) for panels that pass the quality check for List-I but whose cells do not meet the List-II requirement. Those panels can only be used in exempt projects.
The policy goal is straightforward: India wants its solar panels to be genuinely made in India, not just assembled here from imported cells. As of August 2026, ALMM List-II for cells has 31,758 MW of approved capacity across 14 manufacturers, following eight revisions since it was first published in July 2025.
That is the context. Now, what did the August 4 memo actually say?
What the August 4 Memo Clarified
The August 4 Office Memorandum followed MNRE’s July 18, 2026 notification and responded to multiple stakeholder representations asking for clarity on how the List-II rule applies across different project types. The ministry defined applicability based on project category, bid submission dates, and commissioning timelines, and confirmed that DCR provisions remain unchanged.
Here is how it breaks down by project type.
Net Metering and Open Access Projects
This is the category that covers most residential and commercial rooftop solar installations.
For net-metering and open access solar projects, MNRE has granted an exemption from ALMM List-II cell requirements for projects commissioned on or before December 31, 2026. This exemption applies regardless of when the project began and does not require registration on any portal.
What this means in practice: if you are a homeowner installing solar right now with a net meter, you do not need to worry about ALMM List-II for your cells until the end of this year. Your installer still needs to use ALMM List-I approved modules. The cell rule has a grace period for you specifically.
After December 31, 2026, new net-metered installations will need to use panels with List-II compliant cells.
PM Surya Ghar Applicants Who Forgo the Subsidy
Residential rooftop solar consumers installing systems without availing subsidies under the PM Surya Ghar scheme will remain exempt from ALMM List-II until March 31, 2027, provided they submit their applications through the national portal.
This is a narrow category, but it matters for people who specifically choose to give up the central subsidy, a route sometimes called the “Give It Up” option.
PM Surya Ghar Applicants Claiming the Subsidy
This one has not changed. If you are applying for the central subsidy under PM Surya Ghar, your panels need to be DCR-compliant, which means both the module and the cells must be made in India. The August 4 memo confirmed that DCR provisions remain unchanged. You cannot use List-I(a) panels, which use imported cells, and expect the subsidy to clear. This was true before the memo and is still true now.
Private Behind-the-Meter Captive Projects
For behind-the-meter captive projects, private consumers are exempt from both ALMM List-I and List-II requirements.
If you are a private business installing solar purely for your own consumption and not under any government scheme, you are not bound by either list. You can use non-DCR, non-ALMM panels if that is what your EPC recommends. The trade-off is you lose any scheme eligibility.
Private Behind-the-Meter Captive Projects
For behind-the-meter captive projects, private consumers are exempt from both ALMM List-I and List-II requirements.
If you are a private business installing solar purely for your own consumption and not under any government scheme, you are not bound by either list. You can use non-DCR, non-ALMM panels if that is what your EPC recommends. The trade-off is you lose any scheme eligibility.
Government and PSU Captive Projects
Government and public sector captive projects must use ALMM-listed modules immediately, while listed solar cells will become mandatory after December 31, 2026.
So government buildings have a split timeline: List-I compliance now, List-II compliance from January 2027.
Competitively Bid Projects
For projects awarded through competitive bidding, those with the last date of bid submission on or before August 31, 2025 remain exempt from the requirement to use ALMM-listed solar PV cells. Projects with bid submission deadlines after August 31, 2025 must comply with ALMM List-II.
This primarily affects EPCs and developers bidding on tenders, not individual homeowners..
What Did Not Change
Three things stayed exactly the same after August 4.
ALMM List-I compliance is still mandatory wherever it was before. The net metering exemption covers cells only. Your panels still need to be on the current ALMM List-I to qualify for any net-metered connection or PM Surya Ghar subsidy.
DCR provisions are unchanged. If your project requires Domestic Content Requirement compliance, the August 4 memo did not relax that. The subsidy under PM Surya Ghar still requires DCR-compliant panels.
The June 1, 2026 effective date for non-exempt projects stands. Projects that fall outside the exemption categories have been required to use List-II cells since June 1. The August memo did not push that back for them.
The One Question to Ask Your Installer Before Signing Anything
Before you agree to an installation quote, ask your installer this, word for word:
“Is the exact panel model you are quoting currently on MNRE’s ALMM List-I, and are the cells inside it from an ALMM List-II approved manufacturer?”
Do not accept a brand name as the answer. A manufacturer can have some models on List-I and others that are not. The list is updated frequently, and a model that was listed three months ago may have had its status changed. Check any module at mnre.gov.in/almm by exact model number, not just brand name, before you sign a quote.
If your installer cannot give you the specific model name and the corresponding ALMM reference, that is a problem worth solving before money changes hands.
UTL Solar and the Shift Toward Domestic Cell Manufacturing
As ALMM List-II brings greater focus to the domestic sourcing of solar cells, cell manufacturing capacity is becoming an increasingly important part of India’s solar supply chain.
Fujiyama Power Systems, the company behind UTL Solar, currently operates a 1 GW Mono PERC solar cell manufacturing facility at Dadri, Uttar Pradesh. The company has also approved a 1.2 GW TOPCon solar cell facility at Ratlam, Madhya Pradesh, with commercial operations expected to begin in Q1 FY2027–28.
For customers, the practical takeaway is simple: the relevant compliance requirement depends on the project category and the module being installed. Whether choosing UTL Solar or another manufacturer, buyers should verify the exact panel model, applicable ALMM listing and DCR status before installation—particularly when the project involves government schemes or subsidy eligibility.
Frequently Asked Questions
1. What is ALMM List-II?
ALMM List-II is MNRE’s approved list of Indian solar cell manufacturers. From June 1, 2026, solar panels used in most government-linked and net-metered projects must contain cells sourced from manufacturers on this list. ALMM List-I, which covers finished solar modules, has been in place since 2019. The two lists now work together as a paired compliance requirement.
2. Does the August 4, 2026 MNRE memo affect my PM Surya Ghar subsidy application?
If you are claiming the central subsidy, DCR provisions apply and have not changed. Your panels need to be DCR-compliant, meaning both the module and the cells are made in India. The August 4 memo’s net metering exemption does not remove that requirement for subsidy claimants.
3. I have a net metering project that will be commissioned before December 31, 2026. Do I need ALMM List-II compliant cells?
No. MNRE has exempted net metering and open access projects commissioned by December 31, 2026, from the ALMM List-II cell requirement. You still need ALMM List-I compliant modules. No prior approval or registration is needed to use this exemption.
4. What is the difference between ALMM List-I and ALMM List-I(a)?
ALMM List-I covers modules that meet MNRE’s quality standards and use cells from ALMM List-II approved domestic manufacturers. ALMM List-I(a) covers modules that pass the quality check but whose cells come from non-approved sources, typically imported cells. List-I(a) panels can only be used in projects that fall under the exemption categories.
5. How do I verify that my solar panels are on the correct ALMM list?
Go to mnre.gov.in and search by the exact model number shown on your installation quote or the panel datasheet. Do not search by brand name alone since a single manufacturer may have multiple models with different listing statuses. If the model is not findable, ask your installer for written confirmation of the ALMM reference number before the installation begins.
6. What happens if my installer uses panels that are not ALMM List-I compliant?
For PM Surya Ghar applicants, using non-ALMM panels means the subsidy claim will not clear after commissioning, even if everything else in the application is correct. For net-metered installations, DISCOM approval for the bidirectional meter can also be affected. Confirming compliance before installation is significantly easier than resolving it after the fact.
