Domestic Supply‑Chain Policies Accelerate India's Solar Rollout

The push to build a fully integrated domestic solar supply chain is paying off in India. Wood Mackenzie reports that 34 GW of DC solar capacity was commissioned in the first six months of 2026, a 38 % increase over the same period last year, putting the country on a trajectory to add more than 50 GW by the end of the year.

The Approved List of Models‑II (ALMM‑II) rule, which came into effect in June 2026, has forced developers to secure approved modules and cells ahead of schedule. This accelerated commissioning, but also exposed gaps in the country’s solar‑cell manufacturing base, leading to expectations of higher project costs in the short term.

A declining interstate transmission fee discount has further spurred early completions. The subsidy for projects commissioned after July 2026 fell from 75 % to 50 %, with a planned full withdrawal after July 2028, prompting many developers to rush installations.

Despite the aggressive early‑year performance, the second half may see a tapering as cell production struggles to keep up with module demand, pushing module prices upward. Nevertheless, the government has offered temporary relief: net‑metering and open‑access projects are exempt from ALMM‑II until 31 December 2026, and the Ministry of New and Renewable Energy has allowed projects near completion to apply for an exemption through 23 July 2026.