The Ministry of New and Renewable Energy (MNRE) is preparing to tighten efficiency standards for solar photovoltaic (PV) modules used in government-supported solar projects, aiming to phase out lower-efficiency modules by 2027.

Under the draft amendment to the eligibility criteria for the Approved List of Models and Manufacturers (ALMM), the minimum required efficiency for crystalline-silicon modules used in utility-scale and grid-connected projects is proposed to increase from 20 % to 21 % from January 1, 2027, and further to 21.5 % by January 1, 2028. For thin-film (CdTe) modules, the minimum efficiency threshold is expected to rise from 19% to 20% in 2027 and to 20.5% in 2028.

In the rooftop solar and solar-pump segments, the draft mandates crystalline-silicon modules that meet at least 20% efficiency in 2027 and 20.5% in 2028; CdTe modules will need to meet 19.5% and 20% thresholds, respectively. Off-grid distributed renewable-energy (DRE) modules with capacities under 200 Wp for other specialised applications will face similar incremental standards.

Also Read: MNRE Asks Regulator to Hold Off Stricter Green-Power Rules to Encourage Investment

Manufacturers whose modules fail to meet the revised thresholds will be excluded from the ALMM List-I when the new rules come into effect. The MNRE has invited stakeholder feedback and comments on the draft rules, with the intention of finalising the amendments before enforcing them.

Analysts say this move is intended to phase out older, less efficient solar panels, ensure higher energy yield per panel, improve project economics, and enhance the long-term reliability of solar installations. At the same time, the revised module standards are likely to accelerate technology upgrades and steer demand toward newer, higher-performance PV modules, which may increase costs but deliver better output and durability.

With India’s solar module manufacturing capacity forecast to grow rapidly through the end of the decade, the efficiency overhaul signals a push toward quality and long-term sustainability in the solar power ecosystem.

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