MNRE’s ALMM Relief for Net Metering and Captive Projects

The Ministry of New and Renewable Energy (MNRE) has released a new clarification outlining exemptions under the Approved List of Models and Manufacturers (ALMM) for various solar power project categories, focusing on net metering models and captive solar installations. This update addresses queries about the applicability of ALMM requirements, particularly with the upcoming enforcement of ALMM-II for solar cells starting June 2026, alongside existing rules for DCR solar PV modules.

ALMM Exemptions for Projects Commissioned Before June 2026

The MNRE has confirmed that solar projects commissioned before June 1, 2026, under net-billing, virtual net metering, and group net metering will be treated equivalently to conventional net metering schemes for ALMM compliance. According to the ministry’s memorandum, “Net-billing, virtual net metering, and group net metering are considered on par with net-metering for ALMM applicability.” The ministry further elaborated that virtual net metering and group net metering are variations of net metering, catering to groups of consumers or single consumers with multiple service connections, while net-billing combines elements of net and gross metering. This ensures that developers using DCR solar panels in these projects can continue to operate with flexibility until the specified deadline.

Support for Distributed Solar Systems

This clarification provides significant operational flexibility for developers and consumers deploying distributed solar energy systems, particularly in urban settings or for group consumers. By aligning net-billing, virtual net metering, and group net metering with traditional net metering, the MNRE facilitates the adoption of DCR solar panels in diverse solar installations, ensuring compliance with quality standards while easing implementation for smaller-scale or community-based projects.

Stricter Rules for Behind-the-Meter Captive Solar Systems

However, the MNRE has maintained a firm stance on behind-the-meter solar systems used for captive consumption by government bodies or public sector enterprises. The ministry referenced its earlier clarification from October 7, 2022, stating that exemptions outlined in prior memoranda (dated January 13, 2022, and March 28, 2022) do not apply to such systems. Specifically, behind-the-meter solar power plants for captive use by government entities or public sector enterprises are not exempt from ALMM requirements. This ensures that these installations adhere to stringent quality standards, including the use of approved DCR solar panels and components.

Balancing Quality and Flexibility

The MNRE’s latest clarification underscores its commitment to maintaining high equipment quality standards under the ALMM framework while providing operational ease for specific consumer categories within net metering models. By distinguishing between net metering variations and captive solar systems for government entities, the ministry aims to promote the use of reliable DCR solar panels while supporting the growth of distributed solar energy systems across India. This move is expected to streamline compliance for developers and enhance the reliability of solar installations nationwide.