The most prominent topic that seemed to be hovering over India's entire solar industry during the past few months was whether there would be yet another deferment of the ALMM List-II compliance.

On 18 July 2026, clarity came through.

By means of an Office Memorandum, the Ministry of New and Renewable Energy (MNRE) clarified an important point relating to the implementation of ALMM List-II in some of the renewable energy projects. The clarification provided by the MNRE wasn't a significant policy change nor an outright exemption. Instead, it provided a narrow exemption period for Open Access and Net Metering projects while reiterating the ALMM plan of the government. In case you have plans for setting up a solar project, understanding this update can help you plan your project with greater confidence.

A Quick Refresher: What Is ALMM?

The list of Models and Manufacturers of Approved Quality (ALMM) is a quality assurance system developed by the MNRE to enhance the quality and reliability of solar projects in India. Apart from keeping up with the performance criteria, it also serves the government in its larger goal of developing the manufacturing capabilities within the country, being less dependent on the import of products and achieving supply chain security.

The ALMM system is comprised of two lists:

• ALMM List-I includes the solar PV modules which are produced by approved companies.
• ALMM List-II includes solar PV cells and represents the second step of the domestic production process in India.

It is vital to know that the 18 July 2026 notification concerns only ALMM List-II (solar cells). The requirements for solar modules stay the same where applicable.

What Did MNRE Announce on 18 July 2026?

The Office Memorandum provides a limited exemption window during which eligible projects in the renewable energy sector will get exemption from following ALMM List-II regulations.

As per the update:

• Solar projects that have been commissioned up to 31st December 2026 and fall under Open Access and Net Metering categories can continue without having to follow ALMM List-II (Solar Cells).
• This exemption shall be provided only to those projects that qualify according to the specified criteria.
• Projects that would be commissioned after 1st January 2027 shall be obliged to follow the regulations of ALMM List-II.

This announcement will allow the projects which are at an advanced stage of implementation to continue on their planned schedule.

This Is Not a Blanket Exemption

Perhaps the most crucial point about the July 18 declaration is what has not changed.

It did not take much time for rumours to start flying around the entire industry on how ALMM implementation had been delayed in all cases. The Ministry has unequivocally made it clear that it is not true.

The exemption pertains solely to eligible Open Access and Net Metering projects commissioned before 31 December 2026. After this deadline, all relevant projects shall be governed by ALMM List-II.

In simpler terms, an exemption period has been carved out by the government rather than altering the entire implementation timeline.

Understanding the Difference Between ALMM List-I and List-II

The 18th July news has also drawn attention to a key point which is generally overlooked by most project developers.

List I of the ALMM is about solar modules and List II of the ALMM is about solar photovoltaic cells. Though these two forms fall under the purview of the ALMM, their roles in the manufacturing process differ.

It offers only an exemption period for the solar cell requirement of List II and no changes have been made to the compliance requirement for solar modules of List I.

This is critical for developers/EPC companies while procuring since they have to select appropriate modules and at the same time consider future compliance requirements of the cells.

Why Was This Illumination Needed?

The solar industry has grown rapidly in the last few years, especially in the commercial and industrial sectors. By the time the implementation of the ALMM List-II was approaching, many projects were already in stages of financing, engineering, procurement, and construction.

However, without further explanation, there was an uncertainty in equipment procurement and commissioning.

The July 18th exposition will give certainty to all eligible projects that are already on the pipeline and allow them to continue within the set timeframe and give time for manufacturers, developers, and EPC companies to adapt to India’s domestic solar cell manufacturing environment.

Who Benefits From This Update?

This brings increased certainty in several sectors of the solar industry.

C&I consumers embarking upon Open Access and Net Metering projects have a better idea regarding what the compliance process will involve for projects scheduled to be commissioned by the year 2026.

For solar project developers and EPC companies, it becomes easier to pursue their procurement processes according to a definite regulatory regime rather than speculation. The project investors and owners would also gain through increased clarity during their planning of finance and commissioning plans.

The window period for this exemption may be quite short but still brings clarity for ongoing projects.

What Should Businesses and Developers Do Now?

The existing window of exemption must be seen as an opportunity for making the process of implementation easier rather than an excuse for delaying planning.

Companies whose projects are meant to be commissioned prior to 31 December 2026 must look at their procurement timelines, make sure that the equipment is available, and plan their construction activities in accordance with the above.

In turn, companies developing projects scheduled to start after this date should start working on the development of the ALMM List-II-compliant sourcing strategy right away rather than when they start their procurement process.

An early procurement approach can save a lot of time and money.

What Does This Mean for India's Solar Industry?

The July 18 illumination offers temporary certainty while not altering the vision that India holds for solar manufacturing at home.

Instead of undoing the ALMM policy, the government has provided a clearly stated transition time period for projects that are eligible while reaffirming its dedication to quality assurance and manufacturing at home.

For the industry, the message is simple: Make the best of the exemption period, but keep getting ready for ALMM List II compliance from January 2027.

How Rayax Energy Helps Businesses Navigate Regulatory Changes

Nowadays, solar project development requires a lot more than proper engineering, which is why regulatory planning needs to be done right from the start.

At Rayax Energy, we provide companies with comprehensive compliance planning services in order to comply with changing MNRE regulations, equipment procurement, proper equipment selection, and successful EPC completion. This includes assessment of eligibility of projects and equipment as well as scheduling and commissioning of the solar power plant.

With our regulatory expertise combined with technical knowledge, we can help our clients build successful solar projects.

Final Thoughts

With regard to the MNRE's simplification of 18 July 2026 regarding the Open Access and Net Metering exemption window, there is now clarity for developers, EPC companies and businesses engaged in the implementation of eligible projects under such schemes until 31 December 2026. However, this will not change India's plans with regards to ALMM implementation.

With respect to the mandatory compliance with ALMM List-II starting from 1 January 2027, businesses must make use of this time frame to develop robust procurement strategies and plan the schedules for their projects.

In conclusion, the notification offers short-term certainty for project execution while keeping India's long-term ALMM compliance roadmap firmly on track.