India mulls mandatory local sourcing of ingots and wafers for solar cell makers

New Delhi: The government has proposed mandating the procurement of listed wafers and ingots used in solar cells starting June 2028, expanding solar equipment sourcing norms upstream to boost local manufacturing.

The renewable energy ministry on Wednesday notified the inclusion of approved list of models and manufacturers (ALMM) List-III for solar ingots and wafers, with the rules kicking in from June 1, 2028. Ingots and wafers are used in making solar cells and ultimately solar modules.

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The ALMM framework, which acts like a non-tariff barrier, exists for solar modules and is set to become operable for solar cells from June this year.

According to government data, the cumulative module manufacturing capacity is around 172 GW, and cell manufacturing capacity stands at 27 GW.

The latest move will require all projects, including those under net metering and open access, to source wafers from approved domestic manufacturers, while providing grandfathering provisions for projects already in the pipeline.

India currently imports almost all its wafers and ingots requirements, amid significant capacity additions in modules and cells.

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By bringing these segments under the ALMM framework, the government is seeking to address supply chain vulnerabilities and deepen domestic manufacturing.

"While this presents a strong opportunity to accelerate domestic innovation, reduce import dependence, and enhance long-term energy security, given that this will require careful capacity planning, ecosystem readiness, and significant capacity build-up, pushing the target date back would lead to a more robust manufacturing ecosystem, and not cause any short-term disruptions," Srivatsan Iyer, Global CEO of Hero Future Energies said.