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January 13, 2022The ALMM list is the approved list of model and module suppliers to solar projects. In order to be a part of this list, there must be a compulsory inspection of a company’s products and manufacturing sites. According to recent news, the Chinese firms including Trina, Jinko, and Longi have been excluded from this list, ie. they won’t be able to export their solar products to India due to travel restrictions imposed in China as a result of which inspectors cannot visit the country for an inspection.
As a result of which solar tariffs are expected to rise in the near future in India. This leaves us with the question of India’s dependence on China for future development. India is the biggest importer of Chinese solar products. Though India has no dearth of manpower and technology, the country still lags behind in building extensive manufacturing capacities to support demand. On one hand, we will have stalled solar projects, and on the other, there exists the age-old issue of unemployment. Moreover, the government also intends to impose a basic Customs duty of 40% on solar panel imports very soon.
The MNRE published a list of approved models and manufacturers for solar cells and PV modules complying with the BIS norms. The list was published by April 2020 after which, only the models and manufacturers included in these lists will be eligible for use in government and government-assisted projects, and schemes and programs, to be implemented across the country. The purpose of these lists is to ensure higher power generation and the long life of solar projects. Since solar power installations are set up for a period of 25 years, the solar cells and panels used in these projects should be of good quality carrying long warranties. In western countries, testing is usually done by independent testing labs. In India, it will be now done by government officials.
This step should boost the quality of solar projects in India and also support the ‘Make in India‘ movement. Though prices are expected to be steep for the near future, it is a good opportunity for Indian solar manufacturing companies to make the most out of this situation. Adani Green Energy Ltd (AGEL) is alone targeting 45 GW of renewable energy capacity by 2030 and developing a 2 GW solar manufacturing capacity by 2022-23, per year. On the other hand, Reliance New Energy Solar Ltd. (RNESL) is targeting solar manufacturing of 100 GW by 2030. Though things are moving, it will take some time to be there.