JAIPUR: Following a new order from the central government, Rajasthan’s solar energy sector is set to undergo a major transformation. All new projects will now be mandated to use only domestically produced solar cells. This means solar companies will no longer be able to source materials from outside, leading to changes in procurement and supply chain processes. This step has been taken to promote domestic production.
The policy, which comes into effect from June 2026 for solar cells, is part of a broader push under the Approved List of Models and Manufacturers (ALMM) framework aimed at strengthening India’s domestic renewable manufacturing ecosystem. Industry stakeholders say the change will have immediate and long-term implications for project developers, manufacturers, and investors operating in the state’s rapidly expanding solar sector.
Rajasthan, one of India’s leading solar power hubs, is particularly exposed to the transition due to its large pipeline of utility-scale solar projects. The new rules require developers to ensure that modules used in government-linked projects are built using locally produced solar cells, reducing dependence on imported components and pushing companies to align with domestic suppliers.
Officials and industry representatives note that while the policy is designed to boost self-reliance in clean energy manufacturing, the short-term impact could include supply chain disruptions, higher procurement costs, and adjustment pressures for developers who have traditionally relied on imported cells to meet demand and pricing competitiveness.
The solar manufacturing ecosystem in India is still scaling up, with capacity gaps in certain segments such as advanced cell production. Industry experts suggest that Rajasthan-based developers may face challenges in securing timely supply as domestic manufacturers ramp up production to meet the new regulatory requirements.
The Centre has been gradually tightening localisation norms across the solar value chain, extending beyond modules to include upstream components. According to policy notifications, the government aims to reduce import dependency and strengthen domestic capabilities in line with India’s long-term renewable energy targets, which include achieving 500 GW of non-fossil fuel capacity by 2030.
Industry leaders say the next few months are critical. Developers are currently changing their project schedules, budgets, and supplier agreements to follow the new rules. To ensure they have enough materials, some companies are rushing to invest in local, Indian-made products.
Despite concerns, policymakers maintain that the shift is necessary to build a resilient and self-sufficient solar industry. Rajasthan, with its vast solar potential and established project base, is expected to play a central role in this transition, even as it navigates short-term operational challenges.
