Ministry of New and Renewable Energy Tightens Solar Panel Regulations

The Ministry of New and Renewable Energy (MNRE) has announced stricter regulations for manufacturers of solar photovoltaic (PV) modules. It has announced amendments to the Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirement for Compulsory Registration) Order, 2019. These amendments aim to enhance transparency, data collection, and domestic content verification in the solar industry. An Office Memorandum highlighting these amendment was issued on August 7, 2024.

Key Changes in the Order for Compulsory Registration

Factory Inspections

The deadline for finalizing enlistment after a provisional application will remain two months from application receipt. However, provisional enlistment will now be automatically finalized if the National Institute of Solar Energy (NISE) does not submit its inspection report within the timeframe, provided NISE has completed the inspection.

If delays are caused by the manufacturer, provisional enlistment will be revoked.

Prior to this amendment all cases where factory inspection and final enlistment were not completed within two months of application receipt were deemed to be finally enlisted.

Production Data Reporting

A new portal operated by NISE will collect production, sales, and export data from manufacturers.

Existing ALMM enlisted manufacturers have to submit data for their facilities from April 2023 onwards. This data must be furnished by September 6, 2024. Defaulting manufacturers will be liable to be delisted from the Approved List of Models and Manufacturers (ALMM).

All future applications for enlistment, renewal, or model addition will require a certificate confirming data submission for this period from April 2023 on the portal. Applications without this certificate will be rejected.

Domestic Content Requirement (DCR) Verification

Another NISE portal will be used to track domestically manufactured solar cells and modules. This portal will become the sole mechanism for DCR verification. Modules failing verification through this system may face penalties.

Existing manufacturers have one month, i.e. up to September 6, 2024, to register their facilities and begin data entry.

Similar to production data reporting, future ALMM applications will require a certificate confirming data entry on this DCR portal. Applications without this certificate will be rejected.

In case any solar PV module which has been claimed by the manufacturer to be DCR compliant, fails in DCR verification through this portal, the concerned manufacturer may have to face actions / penalties for violation of DCR provisions.

These changes are expected to improve transparency within the solar industry by ensuring accurate data collection and verification of domestic content compliance. This will benefit both manufacturers and consumers by fostering trust and ensuring quality standards.

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