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India Eyes to Increase Efficiency Standards for Solar Modules

Written by: Team Angel OneUpdated on: 3 Dec 2025, 7:19 pm IST
India will raise minimum efficiency requirements for solar PV modules under ALMM from 2027, pushing manufacturers toward higher-performance technology and phasing out outdated modules.
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In a significant move to improve the quality and performance of solar installations, the Ministry of New and Renewable Energy (MNRE) has proposed stricter efficiency thresholds for solar photovoltaic (PV) modules enrolled under the Approved List of Models and Manufacturers (ALMM), as per Bloomberg. 

The draft rule, open for public consultation, aims to ensure that only high-efficiency modules qualify for government-backed and large-scale solar projects.  

Key Development: New Efficiency Benchmarks Proposed 

Under the proposal, from January 1, 2027, the minimum efficiency for crystalline-silicon (c-Si) modules used in utility- or grid-scale projects would increase from 20.0% to 21.0%, with a further raise to 21.5% from 1 January 2028.  

For thin-film modules based on cadmium telluride (CdTe), the efficiency threshold would move from 19.0% to 20.0% in 2027 and to 20.5% in 2028.  

Rooftop solar and solar-pumping segments will also see new efficiency requirements. For these applications, c-Si modules should meet a minimum of 20.5% in 2027 and 21.0% in 2028; CdTe modules will need at least 19.5% by 2027 and 20.0% by 2028.  

Off-grid, distributed-renewable-energy (DRE) modules below 200 Wp and other special-application modules will face incremental thresholds too under the draft.  MNRE’s draft clarifies that any module currently listed under ALMM, or those to be listed in the near future, failing to meet the updated benchmarks will be removed from List-I once the new norms take effect.  

Rationale & Broader Context 

The proposed revision reflects advances in global PV technology: modern modules, including those using mono-PERC, TOPCon or HJT cell architectures, already deliver efficiencies well above 21%, making the new norms commercially viable.  

By raising the bar, MNRE aims to filter out low-efficiency or obsolete solar products from government-supported projects, thereby improving the lifetime performance, reliability and energy yield of India’s solar deployments.  

The move comes at a time when solar-module manufacturing capacity in India is rapidly expanding a trend accelerated by supportive policies such as ALMM, production-linked incentives (PLI) and basic customs duty protections on imports. 

The consultation window (ending 27 December 2025) provides stakeholders an opportunity to engage and shape the final version of the norms.  

Read More: Karnataka Installs 14,151 Rooftop Solar Units, Benefitting 22,313 Households under PM Surya Ghar Muft Bijli Yojana 

Conclusion 

MNRE’s proposed upgrade to solar-module efficiency norms marks a strategic push toward higher-quality, future-ready solar deployment in India. The plan could speed up the adoption of advanced PV technologies, phase out outdated modules, and improve the long-term energy yield across utility-scale, rooftop and off-grid applications, reinforcing India’s commitment to sustainable and reliable solar growth. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Dec 3, 2025, 1:49 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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