MNRE Lowers Efficiency Threshold For Off-Grid Solar Modules Under Revised ALMM Guidelines

Introduction

Focussing off-grid solar modules, the Ministry of New and Renewable Energy (MNRE) has proposed a major change to its Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) Order, 2019. As of May 6, 2025, the revised criteria lowers the minimum efficiency thresholds for solar PV modules used in off-grid systems including fans, streetlights, and solar lamps (apart from rooftop installations and agricultural pumps). The objectives of this strategic change are improving affordability, hastening rural electrification, and pushing decentralised renewable energy solutions all around India.

Explanation (Key Points)

1. Updated Off-Grid Module Efficiency Guidelines

The amendment lowers three different types of solar PV module efficiency requirements:

• Threshold dropped from 17% to 15% in monocrystalline modules.
• Polycrystalline modules dropped from 15.5% threshold to 14%.
• Thin-film module thresholds were dropped from 14% to 12%.

These changes especially apply to off-grid systems, such small appliances and solar lighting systems, whose individual module capacities are less than 200W. The relaxation reflects MNRE’s awareness of the separate cost and scalability concerns in off-grid installations as opposed to utility-scale or grid-tied projects.

2. Low-Capacity Modules Get ALMM Exemptions

ALMM enrolment is not necessary for off-grid applications running capacities less than 200W. This deregulation makes faster deployment of solar solutions in remote areas possible as well as reduces manufacturer compliance costs and simplifies procurement processes. Still under original ALMM efficiency criteria, however, modules for agricultural pumps or grid-connected systems.

3. Reason behind the Policy Adjustment

The amendment addresses two major challenges to off-grid acceptance:

• Cost reduction: Low-income homes can now afford solar technologies since lower-efficiency modules are typically less expensive.
• Off-grid systems often operate under less-than-ideal conditions (partially shading, variable angles, etc.), where performance is hardly affected by somewhat lowered efficiencies.

By putting affordability above peak efficiency, MNRE follows global trends that give practical energy access solutions top priority over the most advanced technical specifications.

4. Impacts on Stakeholders

• Repurposing old manufacturing lines or extra inventory for off-grid markets helps manufacturers reduce wastage.
• Consumers should expect 10–15% price cuts for solar panels and home systems, so lowering payback times.
• Balance quality control (for grid systems, via ALMM) with flexibility for off-grid innovation.

5. Effective Date and Transactive Period

There was no stated transition period; the rules went into effect right on May 6, 2025. This urgent need emphasises India’s will to use decentralised renewable energy sources to electrify every house as part of initiatives like the Pradhan Mantri Suryodaya Yojana.

Conclusion

The deliberate efficiency drop for off-grid solar modules by MNRE marks a significant turning point in India’s energy transition plan. Through recalibrating technical standards to reflect real economic and operational reality, the policy helps manufacturers to serve underprivileged markets while maintaining strict quality standards for grid-connected infrastructure. Thanks to this twin approach—strict ALMM standards for utility-scale projects and reasonable thresholds for off-grid systems—India is positioned to use solar energy as a climate solution and a tool for equitable development. As implementation proceeds, monitoring systems will be crucial to ensure that loosened criteria do not compromise user safety or product lifetime in rural installations.