Will On-Grid Solar Cost More After 1 June 2026? ALMM List-II Explained

If you planned a rooftop net-metering plant, a PM Surya Ghar installation, or an open-access solar project on farm land, one question matters in mid-2026: will on-grid solar cost more after 1 June 2026 because of ALMM?

Short answer: projects commissioned from 1 June 2026 onward face stricter rules — solar modules must be on ALMM List-I and solar cells on ALMM List-II. That pushes the supply chain toward domestic manufacturing, and market reports show higher module prices than cheap import-based options. It is not always “impossible” to install, but budgeting, vendor choice, and timing matter more than before.

This guide explains the policy in plain language, what MNRE said about extensions, and what you should do before signing a quotation. Figures from trade and rating-agency reports are indicative — always verify on official portal at mnre.gov.in and with your state DISCOM.

What is ALMM — List-I vs List-II?

ALMM is the Ministry of New and Renewable Energy (MNRE) Approved List of Models and Manufacturers. Only listed products qualify for many government-linked and grid-connected solar programmes.

Before List-II, some manufacturers could use imported cells, assemble modules in India, and still sell under domestic branding. List-II closes that gap for covered projects: cells must come from ALMM List-II approved domestic makers.

Policy goal: strengthen Make in India solar manufacturing and reduce import dependency. Trade-off: shorter-term supply tightness and higher prices until capacity scales.

Who must follow ALMM List-II from 1 June 2026?

Per MNRE communications reported in industry press (May 2026):

• Net-metering projects (rooftop / farm connections feeding the grid)
• Open-access renewable energy projects
• Projects commissioned on or after 1 June 2026

Projects commissioned before 1 June 2026 may fall under earlier rules — confirm with your developer and DISCOM.

Practical scope is wider than paperwork: many DISCOMs already insist on ALMM-listed equipment for net-metering approval, even when subsidy is state-level. Treat ALMM compliance as the default for on-grid installs in 2026.

For large farm-level plants, also read our PM-KUSUM solar farming guide and agrivoltaics / PM-KUSUM 2.0 update.

Will projects become more expensive?

Honest answer: likely yes in the near term, but the amount varies by project size and state.

Module price trend (industry reports)

Trade media citing market analysts (e.g. Moneycontrol, May 2026) reported:

• Domestic module prices around Rs 25–27 per watt in recent months
• Earlier range often cited around Rs 21–22 per watt
• Reason: tighter domestic cell supply as List-II nears

On a 5 kW rooftop system, a few rupees per watt adds tens of thousands of rupees to EPC cost. On MW-scale open access, the impact is much larger.

Tariff impact (analyst estimates)

CareEdge Ratings, reported in Energetica India and similar outlets, estimated that ALMM on cells could push solar tariffs up by about 40–50 paise per unit until domestic cell supply scales. Other commentary mentions Rs 0.40–0.50 per unit for affected utility-scale pipelines.

These are forecasts, not government-fixed prices. Your DISCOM’s net-metering tariff, bankable PPA, or open-access rate may move differently.

Why cost pressure is real (even if you still get subsidy)

1. Limited List-II cell capacity in the short run — lead times of 8–16 weeks on large orders have been cited for major domestic producers.
2. No cheap imported cells for compliant modules on covered projects.
3. Developers pass through higher module cost into EPC quotations.
4. PM Surya Ghar and state schemes still require ALMM-listed hardware — subsidy does not cancel the need to buy compliant, often pricier, kits.

Did MNRE extend the deadline?

No blanket extension.

In May 2026, MNRE clarified (reported by Mercom India, TaiyangNews, SolarQuarter, and others):

• The 1 June 2026 List-II date stands
• Stakeholder requests for a universal delay were not accepted
• Case-by-case relief is possible for projects with real progress before the cutoff

Two exemption categories (summary)

Category I — Modules installed, not commissioned

• 100% of required modules installed on site before 1 June 2026
• Project not commissioned by that date
• Proof: Electrical Inspectorate approval/certification for DC-side installation including modules

Category II — Effective steps, project grounded

• Material progress before 1 June 2026, e.g.:
  • ≥75% land possession
  • Financial closure (loan sanction / agreement)
  • In-principle connectivity approval
  • Electrical drawings approved (some orders mention approval before 1 May 2026)
  • Either 100% modules arrived at site before notification, or >50% modules installed (geo-tagged dated photos, invoices)

How to apply: Submit claims with documents on the NISE (National Institute of Solar Energy) portal by 30 June 2026. An expert committee may review; field inspection is possible.

Some reports also mention 2–4 month contractual extensions for projects hit by West Asia supply disruptions, subject to case review — not automatic.

Step-by-step: what farmers and rural entrepreneurs should do now

1. Decide your project type

2. Demand ALMM proof on the quotation

• Module model on ALMM List-I
• Cell source on ALMM List-II (manufacturer letter or module datasheet)
• BIS certification where applicable
• Installation date vs commissioning date — compliance often ties to commissioning

3. Compare two scenarios in writing

• Install and commission before 1 June 2026 (if still feasible — supply and DISCOM timelines are tight)
• Install after June with fully compliant domestic stack — budget the Rs 25–27/W class module quotes, not old import-era prices

4. Check subsidy eligibility

Central schemes (e.g. PM Surya Ghar) and many state top-ups require ALMM-listed equipment. Non-listed kits can mean subsidy rejection — far costlier than paying a modest ALMM premium.

See our complete government subsidy schemes list for stacking rules.

5. Use official sources only

• MNRE ALMM lists: mnre.gov.in
• PM solar schemes: pmkusum.mnre.gov.in, state nodal agencies
• NISE portal for exemption claims (if you qualify)

Common mistakes to avoid

1. Buying non-ALMM modules because the dealer offered a “discount”
2. Confusing installation date with commissioning — exemption rules focus on specific milestones
3. Assuming a blanket extension because WhatsApp forwards said so
4. Skipping geo-tagged site photos if you might need Category II relief
5. Ignoring DISCOM net-metering rules — even without central subsidy, ALMM is becoming standard

Bottom line: is June 2026 a hard deadline?

Yes for policy intent. On-grid projects commissioned from 1 June 2026 should plan for ALMM List-I modules + List-II cells. Costs may run higher than 2024–25 import-heavy quotes — industry data points to roughly Rs 4–6 per watt more on modules and ~40–50 paise/kWh tariff pressure in analyst models.

No for every half-finished site: if you already installed all modules or took documented effective steps, apply on the NISE portal by 30 June 2026.

When in doubt, get a second quotation from an ALMM-compliant vendor and confirm with your DISCOM before paying advance.

Disclaimer: ALMM lists, exemption rules, and prices change. Figures from CareEdge, Mercom, Moneycontrol, MNRE press coverage, and industry commentary are indicative. Verify on mnre.gov.in, NISE, and your state DISCOM before investing. Ask Kisan is not a government agency or legal advisor.

Last verified: June 2026 (based on MNRE May 2026 orders as reported in trade press).