ALMM List-II Exemption Extended to 31 Dec 2026: Net Metering & Open Access

TL;DR — The 31 December 2026 Deadline for Net-Metering and Open Access Solar

• MNRE's Office Memorandum dated 18 July 2026 extends the exemption from ALMM List-II (domestic solar cell sourcing) for net-metering and open-access renewable energy projects until 31 December 2026. Projects commissioned on or before 31 December 2026 can still use modules built on imported (non-List-II) cells.
• From 1 January 2027, every net-metered rooftop and open-access solar project in India must use ALMM List-I modules manufactured with ALMM List-II domestic cells. MNRE has explicitly ruled out a further blanket extension.
• This is the widely-reported "net-metering extension until December 2026" — but to be precise, net metering itself has no expiry. What was extended is the cell-sourcing exemption. Net-metering eligibility continues unchanged under your state regulations.
• PM Surya Ghar residential applicants via the national portal get an even longer runway — exempt until 31 March 2027. Private behind-the-meter captive projects (no grid export) remain exempt from both ALMM List-I and List-II entirely.
• One critical trap: MNRE clarified in July 2025 that a solar plant charging a BESS that can export to the grid is NOT behind-the-meter — it loses the private-captive exemption and falls under the ALMM rules.
• ALMM List-II cell capacity is still thin (~13 GW of listed cell capacity against ~91 GW of listed module capacity), so post-deadline projects face supply risk and an estimated ₹0.40–0.50 per unit tariff impact from the cell premium.
• For a C&I buyer in North India, the practical instruction is simple: if you want module flexibility, commission before mid-December 2026 (leave buffer for DISCOM inspection backlogs). Sun Wave Technologies, a leading solar EPC company in India, is holding compliant inventory for exactly this window.

What Exactly Did MNRE Extend on 18 July 2026?

The Ministry of New and Renewable Energy issued an Office Memorandum on 18 July 2026 clarifying the transition timeline for ALMM List-II — the Approved List of Models and Manufacturers for solar PV cells, which became mandatory on 1 June 2026.

The sequence of instruments matters, because there has been real confusion in the market:

The MNRE ALMM page states it plainly: "No blanket extension subject to limited window till 31.12.2026 for commissioning Net-Metering and Open Access RE power projects."

Which Projects Are Covered?

The exemption covers two categories that together account for most C&I rooftop and off-site solar procurement in India:

1. Net-metering projects — residential, commercial, and industrial rooftop systems that export surplus to the grid under state net-metering regulations. The Economic Times noted the exemption "mostly covers commercial and industrial segment projects."
2. Open-access renewable energy projects — captive, group-captive, and third-party PPA plants supplying power through the grid.

Both categories must still use ALMM List-I modules (the module-level list has been mandatory since 2021 for government-linked projects and applies here). What is relaxed until 31 December 2026 is only the cell-level requirement: the modules may be built on imported cells.

Which Projects Are Exempt Entirely?

Two categories sit outside the ALMM framework altogether:

• Private behind-the-meter (BTM) captive projects — a factory consuming 100% of generation on-site with zero grid export, commissioned by a private consumer, is exempt from both ALMM List-I and List-II under the October 2022 and December 2024 OMs.
• PM Surya Ghar residential applicants on the national portal are exempt until 31 March 2027 (a longer runway than the C&I deadline).

The trap to avoid: MNRE clarified in July 2025 that solar charging a battery that can export to the grid is not behind-the-meter. If your solar-plus-storage design has any grid-export capability, the BTM exemption does not apply, and the 31 December 2026 cell deadline governs your project.

Why the Extension Happened: The Cell Capacity Gap

The extension exists because India's domestic cell manufacturing capacity has not caught up with module capacity:

• ~91 GW of module capacity is listed on ALMM List-I.
• Only ~13 GW of cell capacity is listed on ALMM List-II.

That gap means a pure domestic-cell mandate would have stranded module lines and delayed C&I and open-access pipelines through late 2026. The five-month window (from the 31 July list publication to year-end) is intended to let cell lines ramp while projects already in motion reach commissioning.

The corollary for buyers: after 1 January 2027, domestic-cell modules will carry a price premium and potential allocation constraints, estimated by market participants at roughly ₹0.40–0.50 per unit of project tariff impact. Projects that can commission in 2026 capture today's pricing and full module choice.

What a Factory Owner Should Do Before the Deadline

Step 1: Classify Your Project Correctly

The deadline only binds you if your project is net-metered or open-access. Confirm which bucket you are in:

• Net-metered rooftop (most C&I rooftop under 500 kW–2 MW depending on state) → deadline applies.
• Open-access / captive / group-captive (most C&I above 1 MW in North India) → deadline applies.
• Pure BTM captive, zero export, private consumer → ALMM does not apply at all.
• Solar + BESS with any grid-export capability → treated as grid-interactive; deadline applies.

Step 2: Work Backwards From Commissioning, Not Signing

The exemption is keyed to commissioning date, not PO date or application date. A realistic H2 2026 timeline for a 500 kW–2 MW industrial rooftop in Delhi-NCR, Haryana, Rajasthan, or UP:

That is roughly 4–7 months end-to-end. A project kicked off in late August 2026 lands in December–January; one kicked off in October is at genuine risk of missing the window. Do not schedule a commissioning date in the last two weeks of December — DISCOM inspection backlogs at year-end are real.

Step 3: Lock Module Supply With the Right Paperwork

Whichever route you take, your documentation decides whether you clear inspection:

• If commissioning before 31 December 2026 with non-List-II cells: retain the module datasheet, bill of material, and MNRE OM reference in your DISCOM file. The August 2026 clarification confirms no prior approval is needed, but inspectors will still check provenance.
• If commissioning after 1 January 2027: specify ALMM List-I modules built on ALMM List-II cells in the PO itself, and get the cell-provenance declaration from the module maker.

Step 4: Don't Confuse This With Your Metering Rights

The extension says nothing about net-metering eligibility — that is governed by your state commission. Rajasthan's net-metering cap is now 1 MW for all consumer categories (RERC Third Amendment, October 2025; see our RERC industrial net-metering guide), Delhi's remains 500 kW, and UP allows up to 2 MW for HT consumers under its policy framework. Separately, the Ministry of Power's draft Electricity (Rights of Consumers) Amendment Rules, 2026 propose letting SERCs levy a net-metering charge on systems above 5 kW and mandate storage above 500 kW — still a draft, but directionally clear. Commissioning under today's rules is the strongest form of grandfathering.

For the metering options themselves, see our comparison of net metering vs gross metering vs net billing and the net-metering application process guide.

How This Interacts With Other 2026 Deadlines

The ALMM window is one of three year-end 2026 dates a C&I energy manager should have on one calendar:

• 31 December 2026 — ALMM List-II exemption ends for net-metering and open-access projects (this article).
• 31 December 2026 — Renewable Consumption Obligation (RCO) shortfall compliance report due for designated consumers (open-access and captive users); see our RCO industrial compliance guide.
• 1 April 2027 — CEA's new BESS safety chapter (Chapter XA) comes into force; see our BESS regulations guide.

A factory planning a 2026-27 solar capex should treat these as one integrated compliance programme, not three separate news items.

Frequently Asked Questions

Was net metering extended until December 2026?

No — this is the most common misreading of the July 2026 news. Net-metering eligibility has no expiry date and continues under your state regulations. What MNRE extended until 31 December 2026 is the exemption from ALMM List-II (domestic cell sourcing) for net-metering and open-access projects. After that date, such projects must use modules built on approved domestic cells.

Does the ALMM List-II exemption apply to industrial rooftop solar?

Yes. The exemption covers all net-metering projects — residential, commercial, and industrial — plus open-access renewable energy projects. Trade reporting on the 18 July 2026 OM noted it "mostly covers commercial and industrial segment projects." The plant must be commissioned on or before 31 December 2026.

Do I need MNRE approval to use the exemption?

No. MNRE's August 2026 clarification confirmed the exemption applies regardless of project initiation date and requires no prior approval. Keep your module provenance documentation (datasheet, BOM, invoice) in the DISCOM file so the commissioning inspection clears without queries.

Is my captive solar plant exempt from ALMM entirely?

Only if it is genuinely behind-the-meter: 100% self-consumption, zero grid export, owned by a private consumer. Such projects are exempt from both ALMM List-I and List-II. But if your plant exports any power — including a solar-plus-BESS system that can export — MNRE's July 2025 clarification says it is not behind-the-meter, and the ALMM rules (including the 31 December 2026 cell deadline) apply.

What happens to projects commissioning after 1 January 2027?

They must use ALMM List-I modules manufactured with ALMM List-II domestic cells. With listed cell capacity at roughly 13 GW against 91 GW of module capacity, expect a price premium (estimated at ₹0.40–0.50 per unit of tariff impact) and tighter allocation through at least the first half of 2027. Residential PM Surya Ghar applicants on the national portal have a longer exemption, until 31 March 2027.

When should I start my project to make the deadline safely?

For a 500 kW–2 MW industrial rooftop, the end-to-end timeline from EPC signing to DISCOM commissioning is typically 4–7 months. Starting by late August or September 2026 gives a comfortable buffer; starting in October or later puts the project at genuine risk. Keyed to commissioning date, not application date — and avoid scheduling final inspection in the last two weeks of December.

Sources

• MNRE — Approved List of Models and Manufacturers (ALMM) page
• Economic Times: Govt extends exemption for net metering, open access renewable energy projects till December (18 July 2026)
• PV-Tech: MNRE extends ALMM List-II exemption for net-metering and open-access solar projects
• Saur Energy: MNRE clarification exempts select solar projects from ALMM-II (August 2026)
• SolarQuarter: MNRE extends ALMM List-II relief (20 July 2026)

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This guide was researched and written by Sun Wave Technologies, a leading solar EPC company in India specialising in commercial and industrial solar. Regulatory details verified against MNRE sources as of August 2026. For a project-specific read on the deadline, contact Sun Wave Technologies.

Disclaimer: ALMM provisions and exemption windows are subject to change by MNRE office memoranda. Verify the current position against the MNRE ALMM page and your DISCOM before procurement decisions.