Non-integrated solar module makers have asked NITI Aayog to push India's compulsory domestic cell sourcing deadline to December 20271. The Economic Times reported the request on 1 November1.
The ask comes through the Renewable Energy Manufacturers Association of India, or REMAi, which was earlier called the All India Solar Manufacturers Association1. Its members make modules but not cells, and carry 160 GW of nameplate capacity, the report said1.
What List-II requires and when
The renewable energy ministry's Approved List of Models and Manufacturers List-II has applied since 1 June 20261. It requires projects covered by the mandate to use cells from approved domestic manufacturers1.
The requirement was notified in December 20241. For major projects, the compliance date was extended from June to December 20261. In May, the ministry ruled out a blanket extension of the 1 June start. It allowed developers to seek case-specific relief instead1. In July, it extended the exemption for net-metering and open-access projects until December1.
For a developer, the cell is now a document as well as a component. A module built on cells that are not on List-II does not meet the sourcing condition for projects covered by the mandate1. The May decision gives individual projects a route to relief, but not the market as a whole1.
The Economic Times report did not say whether NITI Aayog or the ministry had responded to the association's request1.
The gap is in TOPCon cells
REMAi's case rests on a mismatch between the modules its members can make and the cells they can buy at home. It counts 95 GW of producible TOPCon module capacity against 15.8 GW of enlisted TOPCon cell capacity1. It also says under 2% of that module capacity is available in the open market. Integrated groups use their cells in-house1.
The headline number for enlisted cell capacity is much larger. The ministry added 7,063 MW to List-II in the update reported on 30 October, taking total enlisted capacity to 44.9 GW2. That figure covers all cell technologies, while the association's 15.8 GW refers to TOPCon alone1.
New capacity is coming, but not all at once. Vikram Solar expects first cells from its 9 GW N-type TOPCon plant in Tamil Nadu in December 20263. The full capacity will be commissioned in phases3. The company said it will seek List-II enlistment for cells from the plant "in due course"3.
Estimates of the wider gap vary by source. Solex Energy chairman Chetan Shah said India had about 262 GW of module capacity and about 37 GW of cell capacity as of June 20264. He said ingot-wafer capacity was about 2 GW and polysilicon capacity was nil4. Most of India's installed solar manufacturing capacity is older MONO PERC technology, with some units not operating, he said4.
The mandate lands on a fast-growing market. India's installed solar capacity reached 171.05 GW AC by September 20265.
Prices, delivery and China
Mercom India reported on 27 October that the price gap between modules meeting domestic content rules and those that do not has widened6. It said the gap is raising rooftop installation costs and lengthening payback periods6.
India Ratings and Research said China's proposed export controls on solar manufacturing technology could affect ALMM-II timelines7. It said the controls could also hit the demand-supply balance for DCR cells, meaning cells that meet the domestic content requirement. That would influence pricing and profitability7. "The proposal, if implemented, could slow down capacity addition for backward integration," said Bhanu Patni, a director at the ratings agency7.
China's commerce ministry has proposed controls on 12 photovoltaic technologies8. These include partial restrictions on cell technologies and complete bans on equipment for wafers and polysilicon8. The proposal is open for industry consultation8. China controls more than 75% of the global solar supply chain, according to Ind-Ra7. Solex's Shah put the share at 75% to 90%4.
Some executives do not expect an immediate squeeze. Premier Energies chief business officer Vinay Rustagi said he does not expect restrictions on existing business. He sees "no kind of short-term impact on the sector even going forward two to three years"8. He said the effect would come when newer technologies are commercialised8.
What to watch
The first question is whether the December compliance date holds1. The second is how fast TOPCon cells are added to List-II, where total enlisted cell capacity across technologies stood at 44.9 GW on 30 October2. The third is upstream. The ministry has extended ALMM to ingots and wafers, with a February 2028 deadline8.