Centre Extends Domestic Solar Cell Sourcing Deadline To Dec 31

The Ministry of New and Renewable Energy (MNRE) has deferred the mandatory domestic solar cell sourcing requirement for solar projects until December 31, 2026. This decision provides a seven-month extension for project developers who were previously facing a May 31 deadline. The exemption aims to facilitate a smoother transition for the solar industry as it scales up domestic manufacturing capacity.

The move follows extensive stakeholder deliberations, acknowledging the current supply-demand imbalance in the domestic solar manufacturing sector. While India boasts a significant solar module production capacity of 60-65 GW, its cell manufacturing capacity remains limited to approximately 30 GW. Smaller module manufacturers, lacking integrated cell production, had expressed concerns regarding supply risks and potential cost spikes caused by the original mandate implementation.

The extension is intended to protect existing investments while allowing manufacturers to align with quality standards, including the Approved List of Models and Manufacturers (ALMM-II). Industry experts note that the current overcapacity in modules and fluctuating export opportunities have created a challenging environment. The government's focus remains on balancing the build-out of a robust domestic manufacturing ecosystem with the practical needs of renewable energy projects and affordable electricity under programs like the PM Surya Ghar: Muft Bijli Yojana.