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?
Three simple cases:
- Commissioned before 1 June 2026: exempt. No action.
- Commissioning on or after 1 June 2026: you must comply, with List-I modules built from List-II cells.
- In-flight, racing to commission: you may qualify for a case-by-case time extension or exemption, but you have to apply.
The relief route matters, because plenty of genuine projects were caught mid-build. MNRE has set up a dedicated portal at solardcrportal.nise.res.in (run by the National Institute of Solar Energy), and applications must be submitted by 30 June 2026. Physical applications are not accepted. Broadly, eligible projects are ones where modules are already installed but commissioning is pending, or where “effective steps” were taken before the cutoff: things like substantial land possession, financial closure, in-principle connectivity, approved electrical drawings, and modules delivered or installed past defined thresholds. You'll need supporting proof such as invoices, e-way bills, connectivity approvals and geo-tagged site photographs.
There's also a simpler route specifically for rooftop projects (clarified in mid-June 2026): a rooftop system that had all its modules installed on site before 1 June 2026 but couldn't be commissioned by the DISCOM in time can claim exemption via the NISE portal using GIS-tagged photos, invoices, daily installation reports and self-certification. In the interim, the DISCOM can allow commissioning with List-I modules. Approved projects receive a unique ALMM List-II Exemption Certificate with a revised commissioning deadline. (Projects of 10 MW or less are decided at the state level; larger ones by a central expert committee.)
If you have a project in this position, the single most important thing is not to miss the 30 June 2026 window.
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 you're mid-project, check the NISE relief route before 30 June 2026. Don't assume you've missed the boat, and don't assume you'll automatically qualify. Apply.
- 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?
Possibly, via a case-by-case exemption. Applications go through the NISE portal (solardcrportal.nise.res.in) by 30 June 2026, with documentary proof of effective steps such as land possession, financial closure, connectivity and module delivery or installation. Rooftop projects with modules already installed have a simplified route using geo-tagged photos and invoices. Approved projects get an ALMM List-II Exemption Certificate with a revised deadline.
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.