India's Solar Self-Reliance Push to Cost ₹30,000 Crore in 2026
• India's move towards solar self-reliance under the second phase of the Approved List of Models and Manufacturers (ALMM-II) is expected to increase solar installation costs by ₹30,000 crore in
• The policy, effective from June 1, mandates government and government-backed solar projects to use modules made with Indian solar cells, effectively limiting the use of cheaper Chinese imports. According to Vinay Rustagi of Premier Energies, Indian-made modules cost approximately 10 cents more per watt compared to imported ones. With an estimated 30-35 GW of solar capacity to be built using domestic cells this year, the additional cost is projected to be significant.
Impact & Risks
The policy aims to boost India's domestic solar manufacturing ecosystem, creating jobs and reducing reliance on Chinese imports. However, it also raises costs for developers, taxpayers, and consumers. Critics argue that the reliance on imported inputs like polysilicon and wafers will persist, and the higher costs could slow down solar adoption. On the other hand, proponents believe the move enhances strategic resilience and supply-chain security amid geopolitical tensions.
Related News