SECI Announces Winners of 6 GWh Peak Power Supply Auction

IREDA’s Q1 Revenue Up 15% on Higher Loan Interest Accruals

ABRen Secures $1.6 Billion from MUFG to Fund Sprng Energy Acquisition

Coal India Seeks ₹7 Billion Term Loan for 750 MWh Battery Storage Project

GMIDC Tenders 150 MW Floating Solar Plus 150 MWh Battery Storage Project

GAIL Invites Bids to Augment 5 MW Solar Project in Rajasthan

PFC Consulting Awards Project to Evacuate 14 GW of Renewables in Gujarat

PFC Consulting Tenders Transmission Project for 400 kV Substation in Rajasthan

Grid India Issues New Procedure for Secure Operation of National Grid

Madhya Pradesh Lays Out Banking SOP for Green Energy Open Access Consumers

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2026/08/amazon_polly_103078.mp3?version=1787116886">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>Developers are accelerating project commissioning ahead of the December 31, 2026, Approved List of Models and Manufacturers (ALMM) List-II <a href="https://www.mercomindia.com/mnre-clarifies-almm-list-ii-rules-for-solar-cell-compliance" target="_blank" rel="noopener">exemption</a> deadline, tightening module supply and pushing up project costs.
Industry executives say the rush to procure in the coming months could tighten TOPCon module availability and place additional pressure on already constrained domestic cell supply.
As the industry shifts toward domestic sourcing of solar cells and modules under ALMM List-II, it faces a significant mismatch between module and cell manufacturing capacity. Under ALMM, 215.5 GW of <a href="https://www.mercomindia.com/solar-module-capacity-under-almm-grows-to-215-5-gw" target="_blank" rel="noopener">module</a> capacity is listed, compared with only 31.76 GW of <a href="https://www.mercomindia.com/solar-cell-capacity-under-almm-list-ii-grows-to-31-76-gw" target="_blank" rel="noopener">cell</a> capacity, heightening concerns about near-term supply disruptions.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/ALMM12-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-103098 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/ALMM12-2.png" alt="" width="546" height="562" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/ALMM12-2.png 546w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/ALMM12-2-291x300.png 291w" sizes="auto, (max-width: 546px) 100vw, 546px" /></a>
Project Activity Accelerates 
Developers and engineering, procurement, and construction (EPC) companies are witnessing a revival in project activity that had slowed amid uncertainty over the implementation of ALMM List-II.
Mayur Misra, Director and CEO of <a href="https://corrit.com/" target="_blank" rel="noopener">Corrit Energy and Infra</a>, said leads for new solar projects fell by 40-50% after ALMM List-II came into effect, but the exemption until December 31, 2026 has restored demand to earlier levels.
Developers say that they are seeing a sharp rise in leads for smaller projects of up to 1 MW, many of which are being pushed through on accelerated execution timelines.
Rahul Patil, Manager, Business Development at <a href="https://www.bubhandari.com/" target="_blank" rel="noopener">B.U Bhandari Energ</a>y, said he expects commissioning volumes through December 31 to be 20% to 30% higher than a normal cycle.
According to Nishant Sood, Managing Director at <a href="https://www.candi.solar/in" target="_blank" rel="noopener">Candi Solar</a>, the acceleration is particularly visible in commercial and industrial (C&amp;I) rooftop projects.
He also noted that the five-month exemption period is too short for a new open access project to move from initiation to commissioning due to longer development and approval cycles.
Sood added that projects already at an advanced stage can be fast-tracked to reduce the cost and compliance risks associated with ALMM List-II.
Manufacturers also acknowledge that the ALMM List-II deadline has changed procurement timelines, although they largely view the current increase in activity as demand being advanced rather than entirely new demand.
Vinay Thadani, Director and CEO of <a href="https://thegrewsolar.com/" target="_blank" rel="noopener">Grew Solar</a>, said ALMM List-II enforcement has accelerated procurement, particularly among developers of C&amp;I rooftop, open access and other utility-scale projects seeking to secure compliant modules ahead of the deadline.
Supply Pressure Emerging
Developers expect the shortened procurement cycle to tighten module availability, with supply constraints likely to peak as more projects move into execution during October to December 2026.
Sandesh Naik, Chief Financial Officer at AB Energia Solutions, said the immediate constraint is likely to be for TOPCon modules, given their increasing adoption across new utility-scale projects.
Patil said inverter availability is also tightening, and logistics schedules are becoming less predictable.
He added that Mono PERC modules are more readily available than TOPCon, but inventories are being quickly absorbed as developers finalize orders.
With about five months still available for project commissioning, Patil said ALMM-listed module availability remains adequate for near-term requirements.
Thadani said lead times, previously four to six weeks, could stretch to eight to twelve weeks during peak procurement.
He also acknowledged that limited domestic solar cell capacity remains a major constraint.
Module Prices Expected to Rise
Developers say module prices have already been under upward pressure since the exemption deadline was extended.
Sood expects Mono PERC module prices to rise by approximately ₹0.5 (~$0.005)/Wp to ₹1 (~$0.0104)/Wp and TOPCon prices by ₹0.75 (~$0.0078)/Wp to ₹1.5 (~$0.015)/Wp, with pricing and availability pressures becoming more pronounced during October-December 2026.
Patil said that Mono PERC prices are likely to rise by 4% to 6%, while TOPCon prices could increase by 6% to 10%, depending on the manufacturer and order size.
Developers expect the most acute supply-demand pressure during October to December 2026, potentially extending even after.
Naik said the bigger risk could be the premium developers are willing to pay for assured delivery rather than the headline module price. He added that, with projects approaching a hard commissioning deadline, developers may prioritize availability over lower prices.
Acknowledging the upward pressure on module prices, Tanmoy Duari, CEO at <a href="https://axitecsolar.com/en" target="_blank" rel="noopener">Axitec Energy</a>, said periods of strong demand can create temporary pricing pressure, but it is difficult to attribute price movements solely to the ALMM-II timeline or predict quarter-specific constraints accurately.
Thadani expects supply constraints to become more pronounced during the latter part of FY 2027 (Jan-March 2027) and the early months of FY 2028 (April-June 2027) if the current pace of project execution continues.
Developers Advance Procurement
The tighter commissioning window and concerns over supply constraints are prompting developers to place orders earlier than usual.
According to Patil, developers are placing orders four to six weeks earlier, diversifying sourcing across multiple ALMM-approved cell manufacturers and locking in framework agreements to secure manufacturing capacity.
Naik said even projects with land, grid connectivity, and major approvals already in place could face a four-to-eight week delay if module procurement is not secured early.
While TOPCon remains the preferred choice for efficiency and long-term yield, more developers are now willing to accept ALMM-listed Mono PERC modules where timelines are tight, favoring predictable availability and shorter lead times over higher-efficiency technology.
Project Costs to Rise
Higher module prices, expedited logistics, and accelerated construction could raise overall project costs.
Sood expects project costs to rise by approximately 5% compared to the January to March 2026 period while Naik expects a smaller impact for projects in advanced stages.
For projects running behind schedule, developers say costs could rise further due to expedited logistics, additional construction resources, and financing costs.
Patil said projects that secured module supply two to three months ago is likely to see minimal impact, while those purchasing closer to the deadline could see EPC cost increases of 3% to 7%.
In states where storage integration is mandated, the combination of ALMM List-II compliance and storage requirements could place further pressure on projects already operating on narrow margins.
Sood explained that solar projects have traditionally benefited from discounts to grid tariffs, aided in some markets by favorable banking provisions. Battery storage system costs, combined with a likely premium of ₹7 (~$0.07)/Wp- ₹8 (~$0.08)/Wp for domestic cells, could reduce customer savings and extend payback periods.
He said the combination of higher capital costs, longer procurement timelines, and lower customer savings could delay investment decisions among C&amp;I consumers, particularly those with tighter return thresholds or shorter payback expectations.
Even a 2% to 4% increase in total project costs could materially affect equity internal rates of return and debt service coverage ratios.
Demand Could Taper After Deadline
Developers expect some of the module demand currently being deferred into the exemption window to weaken once the window expires.
Misra said demand is likely to fall by 40% to 50% immediately after the exemption ends.
However, Patil expects a secondary demand wave from PM Surya Ghar projects that remain exempt from ALMM List-II compliance until March 31, 2027.
Sood said that higher costs associated with DCR modules could increase project capital expenditure and lengthen payback periods, disincentivizing price-sensitive C&amp;I consumers. However, he felt long-term C&amp;I solar demand to remain driven by high retail electricity tariffs, sustainability commitments, and the need for competitively priced power.
Module manufacturers, meanwhile, do not expect overall module demand to weaken in the foreseeable future.
Thadani said module demand is expected to remain strong, supported by utility-scale projects, rooftop solar, open-access developments, and rising clean energy adoption among C&amp;I consumers.
The exemption has created a temporary window of accelerated procurement rather than resolving the underlying supply imbalance. How smoothly the market transitions beyond December will depend on the pace at which domestic cell capacity ramps up, developers secure compliant equipment, and project economics adjust to the higher cost of domestically sourced components.

Solar Module Prices Set to Rise as Procurement Rush Builds Ahead of ALMM-II Deadline

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2026/07/amazon_polly_101977.mp3?version=1785299825">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>With the U.S. beginning to enforce the Foreign Entity of Concern (FEOC) rules and global buyers accelerating China+1 sourcing strategies, Indian solar module manufacturers are positioning themselves to capture new export opportunities and expand their international manufacturing footprint.
Manufacturers with transparent supply chains, robust quality systems, and FEOC-compliant sourcing strategies are expected to be the biggest beneficiaries.
Starting April 2026, U.S. companies <a href="https://www.mercomindia.com/us-tightens-tax-credit-rules-to-curb-chinas-clean-energy-role" target="_blank" rel="noopener">seeking</a> federal incentives such as production and investment tax credits for solar and battery storage projects must demonstrate that their supply chains do not receive material assistance from prohibited foreign entities. These include entities linked to China, Russia, Iran, and North Korea.
U.S. companies must also establish that such foreign entities do not exercise effective control over projects claiming the incentives.
The new rules come at a time when India’s module manufacturing is expanding faster than domestic demand, creating a strong incentive for manufacturers to diversify into export markets. If not immediately, Indian companies can also consider exporting solar cells to the U.S., although current manufacturing capacity hovers around 30 GW, which is inadequate to meet domestic demand. But several companies are setting up new production lines and have announced capacity expansions, and supply could outstrip demand in the second half of next year.
According to industry executives, the COVID-19 pandemic fundamentally changed how global buyers view supply chain risk.
Abhishek Kaushal, Chief Business Officer at <a href="https://insolationenergy.in/" target="_blank" rel="noopener">Insolation Energy</a>, said the pandemic exposed the risks of excessive dependence on a single country for global supply chains. Since then, several countries, including the U.S., have been working towards China+1 strategies.
Kaushal said the antidumping and countervailing duty investigations involving Indian solar products might have created short-term trade friction with the U.S. However, FEOC restrictions could ultimately encourage U.S. developers to diversify procurement away from China-linked supply chains while preserving access to federal tax credits.
Manufacturers believe the expanding FEOC compliance framework is reshaping global procurement strategies and creating a significant, but highly selective export opportunity for Indian suppliers.
Kalpesh Kalthia, Chairman and Managing Director at <a href="https://kosolenergie.com/" target="_blank" rel="noopener">Kosol Energie</a>, said the rules could create a sharp divide among manufacturers. Companies that continue to rely heavily on upstream components sourced from regions that are not compliant with FEOC regulations may face trade barriers and tariff exposure.
He added that manufacturers capable of providing complete and auditable supply chain traceability down to the raw-material level are likely to fare the best.
As a result, competitive advantage is likely to shift from manufacturing capacity alone to supply chain transparency and regulatory compliance.
Tanmoy Duari, Chief Executive Officer at <a href="https://axitecsolar.com/en" target="_blank" rel="noopener">AXITEC Energy India </a>believes that companies seeking to supply the U.S. market in the near term must establish transparent sourcing systems, strengthen supply chain traceability, and work with suppliers to comply with applicable regulations.
During its fourth-quarter earnings call, <a href="https://www.waaree.com/" target="_blank" rel="noopener">Waaree Energies</a> noted that the FEOC rules can help non-Chinese supply chains gain traction in the U.S. The Maharashtra-based company said the regulations could encourage non-Chinese manufacturers to build capacity and establish robust supply chains serving the U.S. market. This could include manufacturing in India for direct exports or supplying components for further processing in the U.S.
Waaree noted that Europe, too, has expressed its intention to reduce its dependence on Chinese sourcing, which could place non-Chinese supply chains on a sustained growth trajectory.
Integrated Manufacturers Biggest Winners
The FEOC framework is also expected to reshape competitive dynamics within India&#8217;s manufacturing industry.
Duari said manufacturers with integrated cell and module production are likely to have an advantage because vertical integration provides greater control over supply chains, traceability, product quality, and regulatory compliance.
Pure-play module manufacturers could remain competitive if they have access to FEOC-compliant solar cell suppliers, he added.
However, not all manufacturers are sold on the sustainability of the vertical integration route. Kalthia believes that vertical integration could also become a compliance liability under strict FEOC rules.
He added that an integrated manufacturer could be excluded from the U.S. market if an upstream wafer or polysilicon supplier were flagged for non-compliance.
Kalthia said that manufacturers must be able to segregate non-FEOC cells and wafers for U.S.-bound projects while using alternative sourcing channels for domestic or less-restrictive export markets.
Production in the U.S.
The FEOC rules could also accelerate Indian investment in U.S.-based manufacturing and strategic partnerships.
Kaushal said the U.S. is seeking to reduce its dependence on direct imports while continuing to attract foreign manufacturing investment. Several international manufacturers are therefore moving their production chains closer to the U.S. market.
Manufacturers said the trend is also supported by policy incentives and broader efforts to strengthen local supply chains.
However, Duari noted that imports would likely continue to play an important role in meeting market requirements, particularly in the medium term, keeping global manufacturing hubs such as India relevant to the U.S. supply chain.
Manufacturers agreed that the U.S. module assembly capacity might be expanding, but the market cannot achieve complete import independence in the near term.
Industry insiders also feel that compliance with international guidelines like FEOC comes with their own challenges.
Kalthia said the U.S. has built substantial downstream module assembly capacity but continues to face bottlenecks in domestic cell and wafer production. Compliance would require a strategic combination of domestic and imported components.
Recognizing that future U.S. procurement strategies are likely to combine domestic and overseas manufacturing, Kosol Energie is also evaluating opportunities to establish a manufacturing presence in the U.S. The Gujarat-based company is also looking to enter into strategic partnerships with existing domestic manufacturers.
Indian manufacturers are already responding by investing further upstream. Waaree Energies, for example, has announced an investment of ₹39 billion (~$405.28 million) for a 2,500-ton-per-day photovoltaic glass manufacturing facility. The proposed capacity could support the production of approximately 16-17 GW of solar modules annually.
The company said that glass accounts for approximately 23% of module cost and 75% of module weight, which will significantly strengthen its cost competitiveness and supply chain independence. It has commenced construction of its 10-gigawatt ingot-wafer facility in Nagpur, with a CAPEX of ₹62 billion (~$642.48 million).
Export Volumes Difficult to Forecast
Despite the opportunity, manufacturers remain cautious about forecasting export volumes because U.S. trade and industrial policy continues to evolve rapidly.
According to data from the Department of Commerce, India <a href="https://www.mercomindia.com/indias-solar-imports-rise-14-qoq-in-q1-2026-exports-continue-to-decline" target="_blank" rel="noopener">exported</a> solar cells and modules worth over $77.7 million (~₹7.1 billion) in Q1 2026, a 70.9% YoY decline from $267.6 million (~₹23.2 billion).
The sharp decline also illustrates how policy uncertainty can influence export demand despite strong underlying market potential.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/feoc1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-101978 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/feoc1.png" alt="" width="982" height="627" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/feoc1.png 982w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/feoc1-300x192.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/feoc1-768x490.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/feoc1-650x415.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/feoc1-624x398.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/feoc1-600x383.png 600w" sizes="auto, (max-width: 982px) 100vw, 982px" /></a>
The U.S. accounted for 90.5% of India’s solar exports during the quarter, highlighting continued concentration risk in export demand. The UAE, China, and Thailand accounted for 4.6%, 2.4%, and 0.6% of exports.
Kosol Energie said it has secured contracts and has the capacity to support substantial export volumes. However, it is concerned about the potential impact of the broad tariffs under ongoing Section 232 investigations, which could result in additional duties or quotas on imported polysilicon and downstream solar components.
Despite these uncertainties, manufacturers expect compliant modules supplied to the U.S. market to command a premium over modules sold domestically.
Kaushal said U.S. exports have historically generated profit margins 40% to 60% higher than domestic sales, although the gap has narrowed over time.
Manufacturers noted that the attractiveness of the U.S. market extends well beyond pricing premiums. Long-term policy certainty, access to global customers, foreign-exchange diversification, and stronger acceptance by international financial institutions are also important considerations.
Meanwhile, compliance costs, certification standards, logistics, supply chain traceability, and market-specific regulatory obligations are among the factors that shape U.S. export pricing, according to Duari.
Strengthening Sourcing Strategies
Indian manufacturers now face the dual challenge of meeting rising domestic demand under the Approved List of Models and Manufacturers List-II mandate while positioning themselves for higher-value export opportunities under the evolving FEOC framework.
Kaushal said manufacturers could pursue four broad sourcing strategies for high-value U.S. orders: reserving captive cell production for exports, sourcing non-FEOC cells from compliant countries, accelerating backward integration, and deploying blockchain-based or molecular traceability systems.
Industry executives said manufacturers are already working to expand domestic cell production through private investment and government-supported manufacturing programs. Many believe these investments will not only support exports but also strengthen India&#8217;s long-term manufacturing competitiveness.
Unlike previous trade measures, FEOC is not simply a tariff or import restriction. Instead, it shifts competition toward supply chain transparency and traceability. Manufacturers that can demonstrate compliance across the entire value chain, from polysilicon and wafers to cells and modules, are likely to gain a competitive advantage, while those relying on opaque or non-compliant sourcing may find access to the U.S. market increasingly difficult.

Could US FEOC Rules Create New Export Opportunities for Indian Solar Manufacturers?

axitec-energy

Get the most relevant India solar and clean energy news.

RECENT POSTS