MNRE Proposes Lower Efficiency Thresholds For Off-Grid Solar Projects: Seeks Stakeholder Feedback

The Ministry of New and Renewable Energy (MNRE) is inviting feedback on a draft amendment to the ALMM Order, which proposes reducing the efficiency requirements for solar PV modules used in off-grid applications. These include solar lamps, solar lights, solar street lights, and solar fans. However, this amendment does not apply to solar-powered agricultural pumps or rooftop solar PV installations. The change is specifically for projects using solar PV modules with an individual capacity of less than 200-watt peak.

The ALMM Order, issued in 2019, outlines the requirements for registering solar module manufacturers and their models. Over the years, several clarifications and amendments have been issued, including the procedural guidelines from March 2019. The most recent changes in May 2023 and March 2024 established minimum efficiency thresholds for different categories of solar PV applications.

Currently, for ALMM enlistment, the required module efficiencies for different applications are: 20% for utility-scale power plants, 19.5% for rooftop and solar pumping, and 19% for solar lighting under crystalline silicon technology. For thin-film Cadmium Telluride modules, the efficiency requirements are slightly lower.

MNRE has received multiple requests from stakeholders to lower the module efficiency threshold for off-grid applications. Based on these representations, it is now proposed to revise the efficiency requirements. The new efficiency levels for enlistment in the ALMM list are as follows:

For utility-scale power plants, the efficiency requirement remains at 20% for crystalline silicon and 19% for thin-film modules. For rooftop and solar pumping, the levels are unchanged at 19.5% and 18.5%, respectively. However, for off-grid applications like solar lamps, solar lights, and solar fans, the proposed efficiency requirement is 18% for both crystalline silicon and thin-film technology. These off-grid modules will not be included in the main ALMM List-I but will be part of a separate ALMM List-I (DRE). For any other applications, the efficiency threshold is 19% for crystalline silicon and 18% for thin-film technology.

MNRE is seeking comments and suggestions on this proposed amendment. Stakeholders and interested parties are encouraged to submit their views by March 1, 2025.