Coalition of solar manufacturers and developers has filed writ petition with Karnataka High Court,seeking delay on mandate that new solar projects use only domestic solar cells starting June 1, 2026. Petitioners argue price gap between Indian-made cells and imports is too wide. Cells on government’s Approved List of Models and Manufacturers (ALMM List-II) cost about ₹13 per watt,imports around ₹5 per watt .
Ramesh Shivanna, from Karnataka Renewable Energy Systems Manufacturers Association (KRESMA),stressed how unreasonable this price gap is. “₹5 and ₹13 is unreasonable. That is what we are asking [the court to address],” he said. ALMM aims to ensure panels and components come from approved domestic sources, with ALMM-1 listing about 130 module makers,ALMM-2 some 17 solar cell producers .
Filed June 6,petition challenges Ministry of New and Renewable Energy (MNRE) orders enforcing ALMM List-II for projects after June 2026 . Similar petitions have surfaced in other states like Kerala and Tamil Nadu,showing wider industry concern. Petitioners don't oppose ALMM list itself but want at least one-year delay to boost domestic production at competitive prices.
Shivanna noted Finance Ministry classified the conflict in West Asia as force majeure, leading to extensions for cell manufacturers. He argues developers need similar breaks. “The government should regulate the price,” he said,pointing out need for intervention until domestic supply meets demand . A premium of ₹8 per watt on 30 GW annual build could send ₹24,000 crore to few manufacturers,many benefiting from production-linked incentives .
Currently, only six of seventeen companies on ALMM-2 list make high-efficiency solar cells, including Emmvee, Premier Energies Photovoltaic, Mundra Solar PV, Tata Power Renewable Energy,Waaree,and Renewsys. Ongoing dispute shows significant gap in India’s solar strategy. Installed solar capacity has topped 144 GW,growing ~40% annually,but upstream cell manufacturing remains limited, with just 27 GW capacity by end of 2025. According to CareEdge, domestic cells meet only 25-30% of demand,leaving India reliant on imports, mostly from China.
Shivanna said current high-efficiency cell production in India can't meet needs. “When we ask for cell supply,[many] don’t have stock,” he said . It's complicated by fact that while all cell makers also produce modules, many module makers don’t make cells. About 14 companies account for 98% of India’s solar capacity additions.
MNRE has refused blanket extension, citing need for “policy stability” to keep investor confidence in domestic manufacturing. Ministry instead takes case-by-case approach for substantially built projects. On June 8, 2026, MNRE set up four-member Expert Committee to review extension applications.
Many developers,not into cell manufacturing,have based projects around TOPCon tech. But most of domestic capacity is older Mono-PERC cells, less efficient. Shivanna criticized this return to older tech,comparing it to using outdated vehicle that guzzles more fuel. “Being pushed back to the older cell... is like asking someone to use an [Ambassador] giving 4 km a litre when every vehicle today gives 25,” he said.
To share legal challenge costs,associations from Karnataka, Kerala,and Tamil Nadu teamed up. Other states like Rajasthan and Gujarat have filed separate petitions,with similar cases pending in Delhi and Rajasthan High Courts. What's next...?
