If you're pricing a commercial or industrial solar system right now, or you're part-way through a project, you've probably heard one of two things: that prices are climbing, or that India has “banned Chinese solar panels.” Both are oversimplifications of the same event: a rule that took effect on 1 June 2026.
Here's what actually changed, whether it touches your project, what it does to your cost and timeline, and what a sensible C&I buyer should do about it. This is based on the Ministry of New and Renewable Energy's (MNRE) own order, not on the alarmist version doing the rounds.
What actually changed on 1 June 2026
To understand the rule you need one piece of background: ALMM (the Approved List of Models and Manufacturers) is a registry MNRE maintains of solar equipment approved for use in net-metering, open-access and government-supported projects. It has two parts that matter here:
- List-I governs solar modules (the panels). This has been in force for a while.
- List-II governs solar cells (the components inside the panels). This is the new part, effective 1 June 2026.
Put plainly: for net-metering and open-access solar projects commissioned on or after 1 June 2026, both must now be true: the modules come from ALMM List-I, and the cells inside those modules come from ALMM List-II. The headline shift is that the requirement has moved one layer deeper, from the panel down to the cell. The cells must now be domestically manufactured and government-approved, not just the finished panel.
Source: MNRE Office Memorandum No. 283/63/2025-GRID SOLAR dated 25 May 2026. Verify against the latest MNRE notification before relying on specifics.
“Is this a ban on Chinese panels?” not really
This is where most of the confusion lives, so let's be clear. The mandate is a domestic-content sourcing rule for covered projects, not a blanket ban on all imports or all solar.
- It applies to net-metering and open-access projects commissioned on or after 1 June 2026.
- Projects commissioned before 1 June 2026 are exempt, so nothing changes for an already-running system.
- Residential consumers under the PM Surya Ghar scheme's “Give It Up” route are governed separately under existing guidelines (till 31 March 2027).
So if you already have solar on your roof, this rule doesn't reach back and touch it. What it changes is how new commercial and industrial systems must be sourced going forward.
Does it apply to your project?
Updated August 2026. Two MNRE orders have changed this answer since June. Office Memorandum No. 283/53/2026-GRID SOLAR of 18 July 2026 extended the List-II exemption for net metering and open access projects, and a clarification of 4 August 2026 set out how the rules apply across project categories.
Where your project sits now:
- Commissioned before 1 June 2026: exempt from List-II. No action.
- Net metering or open access, commissioned on or before 31 December 2026: exempt from List-II. No application and no prior approval are required, and the exemption applies whether the project started before or after 18 July 2026. List-I still applies to modules.
- Net metering or open access, commissioned from 1 January 2027: both List-I for modules and List-II for cells apply.
- Captive behind the meter, private consumer or group of consumers: outside the ALMM framework entirely. Neither list applies.
- Captive behind the meter, government entity or public sector enterprise: List-I applies now. List-II is exempt if commissioned on or before 31 December 2026, and applies after that date.
The binding date in every case is the commissioning date, not the installation date. For projects that depend on DISCOM inspection and meter sealing, that distinction decides whether the window is actually available.
MNRE has stated there will be no blanket extension and no change in policy. We plan on the basis that 31 December 2026 holds.
The captive distinction, including why group captive does not qualify as behind the meter, is set out in detail in Captive Solar and ALMM: Why Private Plants Are Exempt and PSU Plants Are Not.
What it means for your cost and timeline
In the short term, expect some upward pressure. A large share of approved domestic cell capacity is held by big, vertically integrated manufacturers, so loose cells on the open market are tight right now. Industry analysts in mid-2026 projected this could push end-consumer tariffs up by roughly 30-40 paise per unit in the near term, and some projects may see commissioning delays while compliant cells are sourced.
Indicative analyst estimate, mid-2026. Verify against the latest market data and MNRE notification.
There's a practical warning buried in that. If a quote suddenly comes in far below the market, ask why. For a system you intend to commission after 1 June 2026, a cheap price built on non-compliant imported cells isn't a bargain. It's a project that may not clear net-metering or open-access compliance. The cheapest quote can quietly become the most expensive one.
Why this isn't all bad news
The near-term squeeze is real, but the medium-term direction is reassuring for a buyer:
- Resilience and quality. A domestic cell-to-module chain means fewer supply shocks and tighter quality oversight than a thin-margin import-and-assemble model.
- Prices should re-stabilise as capacity scales. ICRA's 2025-26 analysis expects domestic solar cell capacity to climb toward around 100 GW by December 2027 (from roughly 18 GW under ALMM today), and module capacity toward about 165 GW by March 2027. In fact ICRA flags a likely overcapacity (annual installation demand of around 45-50 GW against module production capacity of around 60-65 GW), which over time tends to push prices back down, not up.
- The localisation will deepen. A further list, ALMM List-III for ingots and wafers, is slated to take effect from 1 June 2028, so the trend is set, and aligning early is the lower-risk path.
Capacity figures per ICRA's 2025-26 analysis. Verify against the latest available data.
In other words: a bumpy quarter or two, then a stronger and more predictable supply base.
What a C&I buyer should do now
- If your project is net metering or open access, confirm the commissioning date. Projects commissioned on or before 31 December 2026 are exempt from List-II, with no application and no prior approval needed. Work backwards from a realistic commissioning certificate date.
- Get compliance in writing. For any new commissioning, confirm your EPC will supply ALMM List-I modules built from List-II cells, stated explicitly in your contract.
- Ask for the paperwork you'll need. ALMM model details, invoices and certificates are what your net-metering or open-access approval will hinge on.
- Scrutinise cheap quotes. Verify cell-level compliance, not just panel wattage on the cover page.
- Lock sourcing and pricing early while the open-market cell squeeze persists.
How MGetEnergy handles this for you
We source ALMM-compliant modules and cells (List-I modules with List-II cells), so systems we commission on or after 1 June 2026 meet the mandate. We also manage the compliance documentation end-to-end, from net-metering and open-access approvals through to the certificates you'll need on file. If you have a project caught mid-build, we'll help you assess whether it qualifies for the NISE relief window before the 30 June deadline.
And we'll be straight with you about pricing. Rather than hide the mandate's effect, we'll show you exactly what it means for your quote, and how the size of your system changes the maths. If you're weighing capacity, it's worth seeing what a 1 MW plant costs in 2026 and how to think about choosing the right commercial panels under the new sourcing rules.
Get a compliance-checked quote for your project →
Frequently Asked Questions
What is the ALMM List-II / DCR solar mandate that started on 1 June 2026?
It's a Ministry of New and Renewable Energy rule requiring that net-metering and open-access solar projects commissioned on or after 1 June 2026 use solar cells from the Approved List of Models and Manufacturers (ALMM) List-II (i.e. domestically manufactured, government-approved cells), in addition to the existing requirement to use ALMM List-I modules. It is part of the Atmanirbhar Bharat localisation push.
Is this a ban on Chinese solar panels?
No. It's a domestic-content sourcing rule for covered (net-metering and open-access) projects commissioned after the cutoff, not a blanket import ban. Projects commissioned before 1 June 2026 are unaffected.
Does it apply to my existing solar system?
No. Systems commissioned before 1 June 2026 are exempt. The rule applies to projects commissioned on or after that date.
My project is half-built, can I still commission it?
Yes, in most C&I cases. MNRE's order of 18 July 2026 allows net metering and open access projects commissioned on or before 31 December 2026 to be completed without ALMM List-II cells. No application and no prior approval are required, and it applies whether the project began before or after that date. List-I still applies to modules. The case-by-case relief route that operated in mid 2026 has been superseded for these categories.
Will the mandate make my commercial solar more expensive?
In the short term there may be modest upward pressure (analysts in mid-2026 estimated roughly 30-40 paise per unit), because compliant domestic cells are tight on the open market. As domestic capacity scales over 2026-27, prices are expected to stabilise. Confirm current pricing with a fresh, site-specific quote.
How do I know my installer is compliant?
Ask, in writing, that they will supply ALMM List-I modules built from ALMM List-II cells for your commissioning date, and that they will provide the supporting ALMM documentation your net-metering or open-access approval requires.
Is anything else changing in domestic solar sourcing?
Yes. ALMM List-III, covering solar ingots and wafers, is slated to take effect from 1 June 2028, deepening the domestic-content requirement further up the supply chain.
Note on figures: policy details, deadlines and price estimates here reflect MNRE's order dated 25 May 2026 and mid-2026 market analysis, and may change. Verify against the latest MNRE notification and a project-specific quote before acting.