Ministry of New and Renewable Energy (MNRE) Eases Solar panel Efficiency Norms for Off-grid Rural Projects | Current Affairs | Vision IAS
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This means solar modules with comparatively lower efficiency can now be included in the government’s Approved List of Models and Manufacturers (ALMM).

  •  ALMM: It is a list of models and manufacturers of solar photovoltaic (PV) modules approved by the MNRE.

Key Changes in Solar Efficiency Norms (May 2025 Amendment)

  • Efficiency Standards Reduced:
    • Previous (Off-grid <200W) Efficiency: Crystalline silicon at 19% and Cadmium Telluride (CdTe) at 18%
    • New Standard: Both technologies at 18% efficiency.
  • Scope of Change: Applies only to off-grid solar applications below 200W, such as: Solar lanterns, Micro solar grids, Streetlights, Small fans and appliances
    • Does not affect larger systems (e.g., rooftop solar, pumps)
    • An off-grid solar system: It generates electricity from sunlight and stores it in batteries, allowing it to operate independently of the power grid.
  • Creation of a New Category: Introduction of Distributed Renewable Energy (DRE) category to support smaller manufacturers & Wider rural electrification.
    • Distributed Renewable Energy (DRE): It refers to electricity generated from renewable sources, like the sun or wind, near the point of use.

Concerns

  • Risk of lower energy output per unit area
  • Faster degradation of panels may impact long-term reliability
  • Need for strict quality enforcement to avoid market saturation with substandard modules

Significance of the Changes

  • Improved Accessibility & Affordability: Lower efficiency threshold reduces cost of solar kits, making them more affordable for rural consumers.
  • Support for Small Manufacturers: Encourages local and small-scale production, fostering rural solar enterprise.
  • Boost to Rural Electrification: Facilitates expansion of solar-powered lighting and appliances in hard-to-reach areas where grid power is absent or unreliable.
  • Technology Implications: Enables wider use of polycrystalline silicon (cheaper) and CdTe thin-film modules (lower cost, good in low light).
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