caalley logo

The alley for Indian Chartered Accountants

Wishing you a very Happy Diwali
&
a Prosperous New Year

Centre reduces fee for solar PV module ALMM registration, expands validity

New Delhi, May 15, 2023

The changes in the ALMM for PV modules would improve the ease of doing business and aid in ramping up local production of solar PV modules, said BS Bhalla, Secretary of MNRE

The Ministry of New and Renewable Energy (MNRE) has implemented a number of reforms to its Approved List of Models and Manufacturers (ALMM) system for solar photovoltaic (PV) modules.

The reforms, which are largely targeted at cutting the cost of solar PV producers, shortening the time between application and enlistment, reducing the compliance load, and enhancing the general convenience of doing business in the ALMM process, include:

  1. Reduction in application fee by 80 per cent.
  2. Significant reduction in inspection fees, with reductions as high as 70 per cent in some circumstances.
  3. Exemption from factory inspection in the case of enlistment of additional models in ALMM that are comparable to those already enlisted by the applicant but have a lower wattage.
  4. Allowing manufacturers to withdraw applications prior to factory inspection and receive a return of 90 per cent of the application fee.
  5. Increase in ALMM enlistment validity from two to four years.
  6. Grant of provisional enlistment in ALMM within seven days of receipt of Bureau of Indian Standards (BIS) registration, with a two-month time restriction for factory enlistment and final enlistment, failing which deemed enlistment.
  7. All future ALMM applications are to be accompanied by a scanned copy of the application, and processing of ALMM applications will begin without the need for hard copies, which can be submitted later.
  8. Introduction of the following end-use category-specific minimum module efficiency limits for ALMM enlistment:
    1. 20 per cent for utility/grid-scale power plants
    2. 19.50 per cent for solar and rooftop pumping
    3. 19 per cent for solar lighting

Meanwhile, BS Bhalla, Secretary, MNRE, stated that the changes in the ALMM for PV modules would improve the ease of doing business and aid in ramping up local production of solar PV modules to meet present and future demand.

"The PLI Scheme has resulted in not only boosting the domestic manufacturing capacity of solar modules but also vertical integration of the value chain in India. We have already declared the bid trajectory of inviting bids of 50 GW of renewables each year for the next 5 years. This includes 40 GW of Solar energy capacity," said Bhalla.

"The bid trajectory is aimed at providing a fillip to the RE manufacturing industry in the country by indicating the demand that would be created. The easing of the ALMM charges and regulations is a step in the direction of enhancing the Ease of Doing Business, lessening the compliance burden, and reducing the charges incurred in various processes of listing under ALMM,” he added.

What exactly are solar PV modules?

Solar PV modules are created by joining photovoltaic (PV) cells or solar cells. They are made from semiconductor materials such as crystalline silicon.

Solar modules transform the light energy captured from the sun into electric energy. The generated electric energy is then used for lighting residential and commercial establishments.

[The Business Standard]

Don't miss an update!
Subscribe to our newsletter