ALMM Scheme Expanded to Cover Solar Ingots and Wafers - A Structural Shift for India’s Solar MSMEs

On March 18, 2026, the Ministry of New and Renewable Energy (MNRE) expanded the Approved List of Models and Manufacturers (ALMM) framework to include solar ingots and wafers, marking a significant policy shift in India’s renewable energy landscape. Originally designed to promote domestic manufacturing of solar modules and later extended to solar cells, the ALMM mechanism has now been pushed further upstream to cover the foundational components of the solar value chain. This expansion comes at a time when India is aiming to reduce heavy import dependence particularly on China and build a fully integrated domestic solar manufacturing ecosystem.

Under the new framework, MNRE has introduced ALMM List-III, which will include approved domestic manufacturers of solar ingots and wafers. The policy will come into effect from June 1, 2028, after which all government-backed solar projects including net metering and open-access projects will be required to use wafers sourced only from ALMM-listed manufacturers. This effectively means that the entire solar production chain from raw material to final module will now be brought under a regulated domestic sourcing ecosystem.

The official notification and updates regarding this expansion can be accessed through the Ministry of New and Renewable Energy’s official platforms. MSMEs and stakeholders can refer to the MNRE website for notifications, guidelines, and updates: MNRE Official Notifications & Orders. Additionally, broader policy updates and scheme details are available at the national government portal: https://www.india.gov.in, and sector-specific developments are regularly updated on MNRE’s main site: https://mnre.gov.in. These platforms will host the ALMM List-III publication, eligibility criteria, and application procedures once operational.

For MSMEs, this policy is far more than a compliance requirement; it is a direct market creation mechanism. By mandating the use of domestically produced ingots and wafers, the government is effectively guaranteeing demand for local manufacturers. This creates a stable, long-term market for MSMEs operating in upstream solar manufacturing, a segment that was previously dominated by imports. MSMEs entering or expanding into ingot and wafer production will now have policy-backed demand visibility, reducing market risk and encouraging investment.

What makes this especially important is that MSMEs have historically been concentrated in downstream activities such as module assembly or installation. With ALMM now covering upstream components, MSMEs have an opportunity to move up the value chain into higher-value manufacturing segments. This shift can significantly improve margins, technological capability, and global competitiveness for smaller firms. The policy also ensures quality standardisation and traceability, which further strengthens the credibility of MSME manufacturers in both domestic and export markets.

From an operational standpoint, MSMEs can benefit in multiple ways. First, those already involved in solar manufacturing can apply for inclusion in ALMM List-III once the list is opened, provided they meet capacity and technical criteria. Second, MSMEs can participate indirectly by becoming suppliers, service providers, or ancillary units to larger ALMM-listed manufacturers. Third, new MSMEs can enter the sector with greater confidence, knowing that policy support ensures demand continuity post-2028.

To avail benefits under the ALMM framework, MSMEs will need to closely follow MNRE notifications and standard operating procedures. The typical process will involve registering with MNRE, submitting manufacturing and technical details, complying with quality and capacity requirements, and undergoing verification before being listed under ALMM. Updates regarding application windows, documentation, and compliance norms will be released on MNRE’s official portals. MSMEs can also track opportunities and policy support through DPIIT: https://dpiit.gov.in, which plays a key role in industrial facilitation and ease of doing business.

The broader impact of this move on MSMEs is transformational. By enforcing domestic sourcing across the solar value chain, the government is creating a protected yet competitive ecosystem where Indian MSMEs can scale without being undercut by cheaper imports, while encouraging capital investment, technology adoption, and capacity expansion. At the same time, policy-backed demand improves access to financing by reducing risk for lenders and investors. From a sustainability perspective, the expansion strengthens India’s green ecosystem by ensuring that clean energy infrastructure is built on a resilient and self-reliant supply chain. For MSMEs, this means not just participating in the solar market, but integrating into a structured, future-ready green economy where ingots, wafers, cells, and modules are part of a unified domestic value chain. In essence, the expansion of the ALMM scheme is a decisive step toward completing India’s solar manufacturing ecosystem, opening new opportunities for MSMEs to move beyond participation and emerge as key drivers of industrial growth and sustainable development.