Syllabus:
GS3: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
Context:
Recently, the Union Ministry of New and Renewable Energy (MNRE) has reduced the minimum efficiency threshold for solar modules used in rural off-grid solar initiatives.
More on the News
- Now, modules with comparatively lower efficiency can now be included in the government’s Approved List of Models and Manufacturers (ALMM).
- The MNRE’s notification amends its earlier order which had established the ALMM system to regulate approved solar module models and manufacturers.
- These off-grid solar projects primarily include small-scale applications such as solar lamps, streetlights, and fans, typically with a capacity below 200 watts peak.
- The decision is expected to provide relief to smaller manufacturers while potentially reducing costs and improving supply in remote areas. This will give a fillip to rural electrification efforts.
The key changes in the recent amendment
| Category | Application Type | Technology | Previous Efficiency Requirement | New Efficiency Requirement (2025) |
| Category 1 | Utility-scale / Grid-connected power plants | Crystalline Silicon | 20% | No Change |
| Cadmium Telluride (CdTe) | 19% | No Change | ||
| Category 2 | Rooftop solar & Solar pumping systems | Crystalline Silicon | 19.5% | No Change |
| Cadmium Telluride (CdTe) | 18.5% | No Change | ||
| Category 3 | Small off-grid devices (<200W) e.g. solar lamps, lanterns, streetlights | Crystalline Silicon | 19% | 18% |
| Cadmium Telluride (CdTe) | 18% | 18% |
Crystalline Silicon (c-Si)
- Crystalline silicon is the most widely used material in solar panel manufacturing.
- It serves as a semiconductor in solar cells, which are then combined to form panels that convert sunlight into electricity.
- This material is available in two types: monocrystalline (made from a single crystal structure) and polycrystalline (composed of multiple small crystals).
- Solar panels made from crystalline silicon typically offer higher conversion efficiency than many alternative technologies, such as thin-film panels.
Cadmium Telluride (CdTe)
- Cadmium telluride is used in thin-film solar panel technology and functions as a semiconductor to generate electricity from sunlight.
- CdTe panels are recognized for their cost-effectiveness and decent efficiency, making them suitable for a variety of uses, including residential and commercial setups.
- This technology offers a competitive balance between performance and affordability, particularly in large-scale solar installations.
Overview of India’s Solar Energy Capacity
- Solar power capacity surpassed 100 GW in January 2025.
- As of April 2025, India’s cumulative solar capacity stood at 107.95 GW, with off-grid systems contributing 4.98 GW.
- The year 2024 added a record-breaking 24.5 GW of solar capacity, reflecting a more than twofold increase in solar installations as compared to 2023.
- The off-grid solar segment recorded a 182% increase, adding 1.48 GW in 2024.