The Rajasthan Solar Association (RSA) has called on the government and policymakers to adopt a calibrated and implementation-focused transition framework for the upcoming ALMM List-II policy for solar cells, which is scheduled to come into effect from June 1, 2026. While expressing strong support for domestic manufacturing growth, and long-term energy security, the association cautioned that the current solar manufacturing ecosystem may not yet be fully prepared for an immediate shift to mandatory domestic solar cell sourcing.
Industry Faces Critical Transition Phase
According to industry assessments and stakeholder consultations conducted by RSA, the Indian solar sector is entering a highly sensitive transition period where policy ambition and ecosystem readiness are progressing at different speeds. India has already crossed nearly 33.78 GW of approved domestic solar cell manufacturing capacity. However, this remains significantly lower than the rapidly expanding 220+ GW solar module manufacturing ecosystem, creating a structural gap between module demand and the availability of compliant domestic solar cells. The Association noted that the mismatch could create supply constraints and increase project costs across the renewable energy sector.
Rising Costs and Supply Chain Challenges
Industry estimates suggest that Domestic Content Requirement (DCR) module prices have already witnessed a sharp increase due to limited domestic solar cell availability. Moreover, the industry expects additional pricing pressure after the implementation of ALMM List-II. RSA also highlighted concerns that nearly 60% of ancillary industries connected to the solar value chain could face temporary disruptions during the transition phase. These include EVA sheet manufacturers, solar glass producers, junction box manufacturers, ribbon suppliers, and several other component manufacturers. According to the association, demand contraction and operational uncertainty within these supporting industries could impact the broader renewable energy manufacturing ecosystem.
Technology Shift Adds Further Complexity
The asociation further pointed out that India’s current manufacturing ecosystem continues to rely heavily on Mono PERC technology, while project developers and investors are increasingly shifting toward TOPCon technology for higher efficiency solar modules. This technology transition is creating additional challenges for manufacturers attempting to align investments, production capabilities, and market demand simultaneously. Additionally, RSA noted that establishing solar cell manufacturing capacity remains a highly time-intensive process. Typically, manufacturers require nearly six months for plant installation, followed by another six months for stabilization and efficiency optimization before reaching commercial-scale operations.
RSA Calls for Practical Timelines and Policy Stability
Nitin Agrawal, CEO of Rajasthan Solar Association, said that the Association fully supports India’s long-term vision of strengthening domestic manufacturing and building a self-reliant clean energy ecosystem. However, he emphasised that successful implementation will require practical timelines, ecosystem preparedness, and stable policy support. He added that a balanced and phased transition is essential not only for strengthening domestic manufacturing capabilities, but also for maintaining India’s renewable energy growth momentum, investor confidence, and long-term clean energy leadership.
