- These are template ideas, not legal advice — have a lawyer review.
- The big risk is a module delisted before commissioning.
- A compliance warranty plus indemnity shifts cost to the supplier.
- Use back-to-back clauses so the EPC is not stuck in the middle.
- Require ALMM, DCR, BIS and test-report proof on delivery.
A module on the ALMM list today can be off it tomorrow. If that happens before your project is commissioned, someone pays to replace it — and the contract decides who. Most EPC contracts are silent on this. These clause ideas show how to fix that gap and push the risk where it belongs.
Why ALMM and DCR clauses matter
ALMM and DCR clauses matter because module compliance is a moving target, and the cost of getting it wrong is large. A delisted module can mean a rejected net-metering application, a recovered subsidy, or a stalled project. Without a clause, the EPC often eats that cost alone.
Most standard EPC contracts focus on price, scope and timeline. They rarely say what happens if a model is pulled from the list after signing. That silence is the risk. A few well-drafted clauses let you allocate the cost fairly between client, EPC and supplier before anyone is exposed. The penalties and subsidy recovery guide shows what is at stake.
Who pays when a module is pulled
Who pays depends entirely on what your contracts say. With the right clauses, the supplier covers the replacement and delay. With no clauses, the EPC usually absorbs it — and may still owe the client a working, compliant system. So the answer is written in your paperwork, not in the rules.
The three parties in the chain
There are usually three parties: the client who wants a compliant system, the EPC who builds it, and the supplier who sells the module. The EPC sits in the middle. Good clauses push the compliance risk down to the supplier while keeping the client protected — so the EPC is not squeezed from both sides. When a model is pulled, the module delisted mid-project guide walks through the practical steps.
Clauses to consider — and who they protect
Here is a map of protective clauses, what each one does, and who it mainly protects. Use it as a checklist when you brief your lawyer — not as final wording.
Template ideas to discuss with a lawyer — not legal advice or final wording.
The compliance warranty clause
A compliance warranty is a term where the supplier warrants the module is ALMM-listed, and DCR-compliant where required, at the time of supply. It gives the EPC a contractual right to a remedy if the module turns out non-compliant. The warranty is the foundation other clauses build on.
In plain terms, the supplier promises the module is on the right list for the exact model supplied. A simple template idea: the supplier represents that each module is enlisted on ALMM List-I by model number, and where the project requires it, the cells qualify for List-II and a DCR certificate. Your lawyer should tie the warranty to a clear remedy. Pair it with the documentation duty so you can actually prove the claim.
The indemnity clause
An indemnity clause makes the supplier cover the EPC's loss if the module fails compliance — the replacement cost, the delay, and knock-on losses. A warranty says the module is compliant; an indemnity says who pays when it is not. Together they move the risk.
What an indemnity should cover
Brief your lawyer to consider covering the direct replacement cost, the labour to swap modules, the project delay, and any subsidy or tender loss caused by the non-compliance. Suppliers will push back and may cap the indemnity, which is normal. The point is to negotiate the cap, not to leave the clause out. A capped indemnity still beats no indemnity.
Delisting and replacement obligations
A delisting and replacement clause sets out who sources, pays for and installs a compliant replacement if a model is pulled, and by when. This is the clause that directly answers the "who pays" question for the most common real-world event — a mid-project delisting.
A template idea: if a supplied model is delisted from ALMM before commissioning, the supplier must, within a set number of days, supply an equivalent compliant model at no extra cost and bear the swap-out cost. Your lawyer should define the trigger date precisely — listed when, compliant when — because ALMM status changes and the timing decides liability. Tie it to the change-in-law clause for rule shifts.
Back-to-back supplier clauses
Back-to-back clauses mirror the compliance obligations you owe the client onto your supplier, so the EPC is not left carrying risk in the middle. If your client contract demands ALMM and DCR compliance, your supply contract should pass the same duty and remedy down to the supplier.
Without back-to-back terms, you can owe the client a compliant system while having no matching right against the supplier who sold you the failing module. That gap is where EPCs lose money. Ask your lawyer to align the two contracts so the obligations and remedies match. Lenders and insurers like to see this alignment too — the bankability guide explains why.
Client-side clauses to read carefully
On the client side, read what compliance you are actually promising before you sign. A client contract may make you liable for any subsidy the client loses if a module is later found non-compliant — a large, open-ended risk if the wording is broad. Know your exposure first.
- Subsidy-loss liability — check whether you owe the client a recovered subsidy, and try to cap it.
- Compliance representations — only warrant what you can prove with supplier documents.
- Change-in-law relief — seek time and cost relief if MNRE rules change after signing.
- Documentation handover — agree exactly which compliance proofs you must hand over and when.
The aim is symmetry: do not warrant more to the client than your supplier warrants to you. Where the two do not match, that gap is your risk. A lawyer can help you close it before you sign.
How SuryaHub helps you hold the proof these clauses need
Clauses are only as strong as the evidence behind them. A warranty or indemnity is hard to enforce if you cannot show what the module was, when it was listed, and what the supplier promised. SuryaHub keeps each project's ALMM proof, DCR certificate, BIS registration and supplier commitments together in the government workflow record, linked from the procurement BOM. So if a module is pulled, the evidence to enforce your clause is already filed. SuryaHub is pre-revenue; real pilots are Suryantra Energy and RGESPL, and nothing here is legal advice.
Keep the compliance evidence in one place
See how SuryaHub files ALMM, DCR and supplier proof against each project.
Related guides
Frequently asked questions
Who pays when a module is delisted mid-project?+
Who pays when a module is delisted depends on what your EPC and supplier contracts say. A delisting indemnity clause can push the replacement cost and delay onto the supplier. Without such a clause, the EPC often absorbs the cost. This is why ALMM and DCR clauses matter — have a lawyer draft them for your contracts.
What is an ALMM compliance warranty clause?+
An ALMM compliance warranty clause is a contract term where the supplier warrants the module is ALMM-listed, and DCR-compliant where required, at the time of supply. The clause gives the EPC a contractual right to a remedy if the module turns out non-compliant. Treat the wording as a template idea and have a lawyer review it.
Should I use back-to-back clauses with my supplier?+
Back-to-back clauses mirror the compliance obligations you owe the client onto your supplier, so the EPC is not stuck carrying risk in the middle. If your client contract demands ALMM and DCR compliance, your supply contract should pass the same duty and remedy to the supplier. Have a lawyer align both contracts.
Do these clause examples count as legal advice?+
No. These clause examples are template ideas to discuss, not legal advice and not a binding contract. ALMM and DCR rules change and are litigated, and contract law varies. Always have a qualified lawyer draft and review your EPC and supplier agreements before you sign or rely on any clause.
What documents should a compliance clause require?+
A documentation clause should require the supplier to provide ALMM listing proof for the exact model, a DCR certificate where the project needs domestic content, BIS registration, and the module test reports on delivery. Holding these documents protects the EPC and satisfies lenders and auditors who may review the project later.
How does a change-in-law clause help with ALMM?+
A change-in-law clause defines what happens if MNRE rules change mid-project, such as a new List-II cell date. The clause can share cost and time relief fairly between the parties when a rule shifts after signing. Because ALMM dates are litigated, a clear change-in-law clause reviewed by a lawyer reduces disputes.
Sources & references
The compliance rules these clauses respond to come from primary government sources. The clauses themselves are template ideas — always confirm current rules and have a lawyer draft your contracts.
- Ministry of New & Renewable Energy (MNRE) ↗
Publishes ALMM orders and delisting decisions that trigger contract risk.
- NISE DCR portal ↗
Issues DCR certificates referenced in compliance clauses (verify URL).
- National Portal for PM Surya Ghar ↗
Scheme that makes DCR mandatory and ties subsidy to compliant modules.
Written by the SuryaHub team · reviewed against MNRE, NISE & scheme sources · updated 20 June 2026.
Method: Clause ideas reflect common EPC risk-allocation practice and are re-checked every 30 days. They are template ideas, not legal advice or a binding contract — have a qualified lawyer draft and review every clause. SuryaHub is pre-revenue; only Suryantra Energy and RGESPL are real pilots.
Change log: 20 Jun 2026 — first published.