India Mandates Domestic Solar Ingots and Wafers Under ALMM by June 2028

The Indian government’s decision to bring solar ingots and wafers under the Approved List of Models and Manufacturers (ALMM) framework marks a decisive shift in the country’s renewable energy industrial policy. By setting a deadline of June 1, 2028, the Ministry of New and Renewable Energy (MNRE) is signaling to the global market that India is no longer content with being a mere assembler of solar modules. This move effectively mandates that for a solar project to be eligible for government-backed schemes or net-metering benefits, it must eventually utilize upstream components manufactured by approved domestic entities. This is a significant escalation from the current ALMM scope, which primarily covers solar modules and, more recently, solar cells.

Industry context reveals that while India has made rapid strides in solar module assembly and cell manufacturing, the upstream segments—specifically the production of polysilicon, ingots, and wafers—remain a critical bottleneck. Currently, Indian manufacturers are heavily reliant on imports for these components, with China controlling over 90% of the global supply for wafers and ingots. This dependency has long been viewed as a strategic vulnerability, particularly as India aims to reach 500 GW of non-fossil fuel capacity by 2030. The extension of ALMM is designed to provide the long-term policy certainty required for domestic conglomerates and specialized manufacturers to commit the massive capital expenditure needed for ingot and wafer production facilities.

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Currently, Indian manufacturers are heavily reliant on imports for these components, with China controlling over 90% of the global supply for wafers and ingots.

The implications for the global supply chain are profound. In the short term, the 2028 deadline provides a four-year window for domestic players to scale up. This timeline is critical, as setting up ingot and wafer manufacturing is significantly more capital-intensive and technologically complex than module assembly. We expect to see a surge in joint ventures and technology transfer agreements between Indian firms and international equipment providers. However, there is a risk of short-term price volatility. If domestic capacity for ingots and wafers does not reach critical mass by mid-2028, project developers may face a supply crunch or higher costs compared to cheaper, non-ALMM compliant imports from Southeast Asia or China.