At the end of last year, the center ordered developers to use only specific solar panels at local level. Since these panels stand more, developers offer higher in the solar auctions that followed, a total of 12 GW capacity. Since such models are rare and solar expansion is an urgent need, the rule has been abandoned for projects awarded in December-red-redness, as the Discoms refuse to buy energy at a higher price, four people said with this matter.
In the heartburn center there is an Indian list of models and manufacturers (Almm) in India, a list of manufacturers of solar panels and models that ensure that only high quality products are used in solar projects in India. However, local production and technology in solar panels must still catch up with a flourishing demand and create a shortage that has forced the government a temporary revision of the mandate. All projects entered 1 June 2026 or later will have to use models in the Almm list.
Tariff trap
A powerful renewable energy company that has been affected, said that despite the exception, developers have already enrolled more expensive domestic cells in their offers and quoted higher tariffs. “Now that they have been provided with relaxation and cells produced at local level, it is unlikely that discomings would sign agreements on the sale of power on the basis of higher tariffs,” said Executive Director on condition of anonymity. He said that the government and regulatory bodies would have to come up with a solution, either through a change of law or by re -abolition of tenders and re -issuing tenders.
Developers compete in solar offers issued by government agencies, factor the probable costs, and expect to receive their costs from distribution companies that buy power from them. This means that projects can stop when the developer who has won the offer cannot find the buyer. According to industrial analysts, resignation with Discomy could leave the projects stuck.
“Discoms always has the opportunity to not sign an energy sale agreement for these projects. They may rather wait for projects that are later offered with lower tariffs. These offers may be necessary unless tariffs are agreed,” the official said with the distribution company under anonymity.
Development comes at a time when the agencies for government and renewable energy are already trying to clear pending agreements on the sale and purchase of energy unsigned energy. In June, Mint announced that the center would speak to the parties to push through the adoption of uniform tariffs for renewable energy, because about 30 Giga Watt (GW) worth PPA is unsigned.
Stuck
“Overall, about 40 GW projects, including 12 GW, which were offered in the first six months of this year, be stuck from now on,” said the second developer, emphasizing a wider challenge to get civil services to commit to new energy agreements.
The main developers who are affected are Adani Green Energy and Avaad. In March, Adani Renewable Energy Holding Twelve, Adani Green, Project Citation 600 MW £3.41 for kilowatt -hour (kwh) while Avaada Energy won 210 MW quotes £3,42 for kWh. Both offers were issued by the state of NHPC Ltd.
Questions sent to Adani Green, Avaad and the Ministry of Trade Union and renewable energy remained unanswered.
The SMK Research reported in the August report that the implementation of AlMM for solar articles could create a lack of domestic content modules. This deficiency could delay 20-25 GW of green energy projects in the next two to three years and increase project tariffs £0.5 per unit, he said. A separate JMK report stated that a recent reduction in tax from goods and services (GST) to renewable energy equipment from 12% to 5% can lead developers of 50 GW projects to look for tariff revisions on the basis of the provisions of the “Amendment to the Act”.
CAGEY DISCOMS
According to the Careedge evaluation, from December 9, 2024, the authorities granted a rendering energy capacity of 12 GW until the end of July 2025, including hybrid and continuous hours (RTC) and Companies and Transmitable Reloacle Energy (FDRE). While the proportion of ordinary vanilla solar capacity in 2025 decreased in the middle of a wider shift towards the storage procedure, the solar capacity continues to be an important part in hybrid and complex project structures.
“Given the relaxation in the mandate of domestic cells until August 2025, the offer of offerings from December 2024 to August 2025 is likely to face a delay in the PPA/PSA signature by signing Discoms. The law could also be demanding.”
Reduction
Careedge assessment estimates that the use of cheaper, unlimited solar modules could reduce capital costs of these projects by approximately that £0.45 crore on megawatt. The average cost of setting these projects is estimated around £6 crore on MW.
“Revision of Almm-II usability for selection procedures could place capacities assigned by relatively higher tariffs during the period of December 2024-July 2025 in a state of uncertainty,” said Jatin Arya, director of Careedge Rating. He added that developers could face “negotiations on tariff, potential abolition of final ophtpers or regulatory obstacles in ensuring consent for tariffs of offer”.
Arya said that if these offers appear before the regulatory bodies for the revision of tariffs, the situation could become more complicated, as developers can claim to have already commissioned with domestic suppliers and reversal could lead to material losses.
(Tagstotranslate) renewable energy
