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MNRE Proposes Lower Efficiency Thresholds for Off-Grid Solar Applications

To encourage the adoption of off-grid solar solutions, the Ministry of New and Renewable Energy (MNRE) released a draft amendment to the Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) Order on February 14, 2025. The draft amendment aims to reduce the efficiency standards for certain off-grid applications, such as solar lamps, solar light, solar street lights, and solar fans—particularly those based on modules of capacities less than 200 Watt peak.

Background:
The current ALMM Order aims to encourage quality and reliability by imposing minimum efficiency standards for solar photovoltaic modules. Industry feedback, however, has indicated that such efficiency standards are too stringent for off-grid projects, where smaller capacity modules are more commonly used.

Key Points of the Amendment:
Targeted Applications: The amendment specifically targets off-grid products like solar lamps, solar light, street lights, and fans.
Lower Efficiency Standards: Reducing the minimum efficiency standards will make more solar modules available for off-grid applications, hence lowering the cost of solar installations.
Quality Maintained: The amendment reiterates the importance of quality and reliability in solar products despite relaxing the efficiency standards.
Industry Feedback: The proposal is a response to representations made by manufacturers and consumers who have been struggling to adapt under the current ALMM Order.
Implications for the Solar Industry:
Increased Accessibility: The new standards can enable more manufacturers to produce off-grid solar solutions, leading to competitive pricing and greater availability.
Improved Adoption: More affordable and tailored solutions may encourage greater adoption in rural and underserved areas.
Innovation Opportunities: Flexibility in efficiency standards can encourage innovation in product design, enabling manufacturers to better address the unique needs of the off-grid market.
Quality Assurance Issues: Balancing loose standards with the requirement of robust, high-performance products will be essential in order to ensure long-term dependability.
Conclusion:
The MNRE's draft amendment is a strategic step toward enabling the off-grid solar industry by making it more inclusive and economically sustainable. As the draft is discussed further, industry participants will be looking closely at how these reforms might bring in cost-effective, innovative, and affordable solar energy options in India.

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