Solar Panel Rules Change from June 1: How the New Regulation Will Impact Your Wallet

India’s solar sector has seen a new rule take effect from June 1, 2026, that could influence the price and installation process of rooftop solar systems. The government has tightened the Approved List of Models and Manufacturers (ALMM) framework for solar equipment, making it mandatory not only for solar panels to be included in the approved list, but also for the solar cells used inside those panels to come from approved manufacturers. The change applies to solar projects under government schemes, meaning only companies listed in the ALMM can supply both panels and cells for such installations.

The move is intended to strengthen domestic manufacturing, reduce dependence on imports, and improve product quality in the solar market. By extending approval requirements to solar cells, the government aims to ensure that more of the supply chain is sourced from verified manufacturers operating within the approved framework. Officials see this as part of a broader push to support the Make in India initiative and boost India’s solar equipment production capacity.

For consumers, the immediate effect may be a modest rise in the cost of installing solar systems. Industry estimates suggest the additional expense could be around ₹3,000 for a 1-kilowatt system, ₹6,000 for a 2-kilowatt system, and ₹9,000 for a 3-kilowatt system. While these price increases may make rooftop solar slightly more expensive in the short term, the government’s continued support through the PM Surya Ghar scheme may help offset some of the added cost through subsidies.

The timing of the rule change comes as rising summer temperatures are increasing electricity use across households. With more people relying on air conditioners and coolers, electricity bills have become a growing concern, making solar panels an increasingly attractive option for reducing long-term power expenses. As a result, many households are looking to install rooftop solar systems to lower monthly utility costs and gain more control over their energy use.

Experts and consumers are being advised to consider several factors before installing solar panels. These include household electricity consumption, available budget, product quality, warranty coverage, and future energy needs. Buyers are urged not to choose only on the basis of low upfront price, since long-term performance and reliability can have a greater impact on overall savings.

The government says the stricter rule is designed to raise standards in the solar sector while promoting greater self-reliance in manufacturing. Although installation costs may rise slightly, the policy is expected to deliver benefits over time for both consumers and the wider economy by improving quality, supporting local industry, and reducing import dependence.