Delayed Solar Projects may get Limited Relief Ahead of Jun 1 Sourcing Deadline
New Delhi: The government is considering to grant limited relief to solar projects delayed by factors beyond developers' control though the Centre is unlikely to offer a blanket deferment of mandatory local sourcing rules for photovoltaic cells set to take effect June 1, said people familiar with the matter.
For projects that couldn't commence on schedule due to reasons beyond the developers' control such as delay in transmission network, discussions are on if they can be allowed to apply for an extension with evidence, one of the persons said.
This exemption may be considered only for a limited period, another person said.
Per the norms, solar project developers need to use solar photovoltaic cells from among models and manufacturers enlisted in ALMM List-II, with a cut-off date of May 31 for commissioning. The list works like a non-tariff barrier and has been successful so far for solar modules.
"There have been extensive consultations between the manufacturers and the developers, and generally the consensus which emerged was that wherever solar modules have been installed but commissioning was delayed, those could be grandfathered," a person said.
Some developers, especially in the commercial and industrial segment, have raised concerns over the limited capacity vis-a-vis their demand in the run up to the implementation and related cost increase.
However, the government believes there is "enough supply", the person said.
As of April, more than 30 GW cell capacity across 17 plants stands enlisted under List-II.
As per the Indian Solar Manufacturers Association (ISMA), 73 GW more capacity is under construction or planned, taking aggregate projected capacity to about 103 GW by December.
Of the 103 GW projected for year-end, an estimated 50 GW is already under active construction. Cumulative committed investment in domestic cell manufacturing now exceeds ₹50,000 crore, according to ISMA.
Price discovery in segments governed by domestic content requirements appears to be tracking the capacity ramp up.
Total domestic content requirement led cell demand from PM Surya Ghar Muft Bijli Yojana, PM-KUSUM, commercial and industrial segment's rooftop and open access projects, central public sector undertakings and utility-scale projects is estimated at around 16 GW in 2026, rising to 31 GW in 2027, 44 GW in 2028 and 54 GW in 2029, as per ISMA.
For projects that couldn't commence on schedule due to reasons beyond the developers' control such as delay in transmission network, discussions are on if they can be allowed to apply for an extension with evidence, one of the persons said.
This exemption may be considered only for a limited period, another person said.
Per the norms, solar project developers need to use solar photovoltaic cells from among models and manufacturers enlisted in ALMM List-II, with a cut-off date of May 31 for commissioning. The list works like a non-tariff barrier and has been successful so far for solar modules.
"There have been extensive consultations between the manufacturers and the developers, and generally the consensus which emerged was that wherever solar modules have been installed but commissioning was delayed, those could be grandfathered," a person said.
Some developers, especially in the commercial and industrial segment, have raised concerns over the limited capacity vis-a-vis their demand in the run up to the implementation and related cost increase.
However, the government believes there is "enough supply", the person said.
As of April, more than 30 GW cell capacity across 17 plants stands enlisted under List-II.
As per the Indian Solar Manufacturers Association (ISMA), 73 GW more capacity is under construction or planned, taking aggregate projected capacity to about 103 GW by December.
Of the 103 GW projected for year-end, an estimated 50 GW is already under active construction. Cumulative committed investment in domestic cell manufacturing now exceeds ₹50,000 crore, according to ISMA.
Price discovery in segments governed by domestic content requirements appears to be tracking the capacity ramp up.
Total domestic content requirement led cell demand from PM Surya Ghar Muft Bijli Yojana, PM-KUSUM, commercial and industrial segment's rooftop and open access projects, central public sector undertakings and utility-scale projects is estimated at around 16 GW in 2026, rising to 31 GW in 2027, 44 GW in 2028 and 54 GW in 2029, as per ISMA.
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