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There is major relief for consumers planning to install rooftop solar systems. The Central Government has deferred the mandatory use of Domestic Content Requirement (DCR) solar modules for six months, a move expected to reduce installation costs by up to ₹12,000 per kilowatt.
The Ministry of New and Renewable Energy (MNRE) issued a fresh order on Saturday evening, allowing net metering and open access solar projects to be commissioned using non-DCR modules until December 31, 2026.
The decision will enable vendors and consumers to utilise existing stocks of non-DCR modules over the next six months, helping to complete projects that had been left unfinished.
Thousands of solar projects had stalled across India
From June 1, the government had enforced a rule stating that solar projects using modules not included in the Approved List of Models and Manufacturers (ALMM) would not be eligible for grid connection.
As a result, thousands of rooftop and open-access solar projects across the country came to a standstill, causing significant financial losses for both consumers and solar vendors.
Cost of a 3 kW rooftop solar system rose by up to ₹40,000
Following the mandatory implementation of DCR modules, the market experienced a severe supply shortage, pushing up prices sharply. Non-DCR modules, which had previously been available at ₹15-16 per watt, were replaced by DCR modules costing ₹30-32 per watt.
The sharp increase directly affected beneficiaries of the Pradhan Mantri Surya Ghar Muft Bijli Yojana. As a result, the cost of installing a 3 kW domestic rooftop solar system increased by ₹35,000-40,000, equivalent to an additional ₹12,000 per kilowatt.
The higher costs prompted many consumers to postpone new installations, while numerous projects already booked by vendors remained incomplete.
Rooftop structures installed, but panels could not be fitted
Rajasthan has more than 2,200 registered vendors under the Pradhan Mantri Surya Ghar Muft Bijli Yojana, including around 800 vendors operating in the Jaipur Discom area alone.
The shortage of DCR modules severely affected thousands of domestic and commercial rooftop solar installations across the state. In many cases, iron mounting structures had already been installed on rooftops, but the solar panels could not be fitted because modules were unavailable.
Solar vendors said the disruption in supplies led to growing disputes with customers, while rooftop solar projects worth thousands of megawatts in industrial areas also remained stalled.
Industry seeks a long-term solution
Nitin Agarwal, Chief Executive Officer of the Rajasthan Solar Association, welcomed the government’s six-month relaxation, saying it recognises the practical challenges faced by the industry and will allow many stalled solar projects to be completed. He said the move would provide significant relief to both vendors and consumers.
However, he added that India’s domestic production of solar cells remains well below current demand. He said the government needs to introduce a practical and permanent long-term solution to ensure the sustainable growth of the country’s solar industry.
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