If you have solar panels installed at your home or are considering installing them, new regulations will come into effect on June 1, 2026. Under these regulations, both solar panels and solar cells will need to be from the government's approved list. The new regulations may make some solar systems more expensive, and require more compliance for subsidies and net metering.

New regulations will be implemented in the solar industry starting June 1, 2026, which could impact solar panel prices and installation processes. Under the new rules, some solar panels may become more expensive, and more compliance requirements will be required for subsidies and net metering. The government's aim is to promote solar manufacturing in the country and reduce dependence on China.

However, amid these changes, the question is growing among the public about whether installing solar systems now is better or later. Experts believe that the cost of some systems may increase after the new regulations come into effect.

What is the new rule?

This new rule is called ALM (Approved List of Models). Previously, the government only inspected the entire solar panel module. Now, starting June 1, 2026, the solar cells within the panel must also be from the government's approved list. This rule will apply especially to government schemes, subsidies, net metering, and large projects. The benefit is improved quality and a boost to Make in India. However, in some cases, the price of the panel may be affected.

How expensive can solar panels be?

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According to experts, if ALM compliance alone increases panel prices, the difference could be up to ₹3,000 per kilowatt. 2 kilowatts could cost up to ₹6,000, and 3 kilowatts could cost up to ₹9,000. If supply decreases, prices could increase further. However, this isn't necessarily true for every customer. Those who don't receive subsidies or net metering won't see much impact. Rumors are circulating that subsidies will be discontinued, but that's not the case.

Will the subsidy be stopped?

Subsidies under the PM Surya Ghar Yojana will continue. Subsidies of up to ₹30,000 per 1 kilowatt, ₹60,000 per 2 kilowatts, and ₹78,000 per 3 kilowatts will be available. Additional subsidies are also being offered in many states. Proper procedures, documentation, and inspection will be required to receive the subsidy.
Two options are available: the subsidy route and the freedom route.

Subsidy route: This involves an on-grid or hybrid system. This is good for households looking to reduce their electricity bills. It offers subsidies, but technology and choice are limited. Paperwork and waiting time are required.

Freedom Route: This route doesn't require any subsidies. The latest technologies, such as HJT, HDT, lithium batteries, and hybrid inverters, are available. This route is ideal for those needing backup during power outages or an off-grid system. The initial cost is higher, but it offers better long-term performance.

What should customers do?

After June 1, 2026, compliance will be more important with the subsidy route. If you simply want to save on bills and have patience with the paperwork, choose the subsidy route. If you need the latest technology, backup, and a future-ready system, the freedom route is better. There's no need to panic. Make a decision based on your needs, budget, and electricity requirements. Before installing solar, be sure to obtain complete information from a reputable vendor.