Major Relief for India's Solar Sector as DCR Mandate Eased

Jaipur/New Delhi: In a significant move set to energize India's renewable energy landscape, the Central government has provided a crucial six-month reprieve for the solar sector. The mandate for Domestic Content Requirement (DCR) modules has been temporarily withdrawn, a decision widely welcomed by both consumers and companies.

This means that until December 31, 2026, net metering and open access solar projects can proceed with commissioning even if they use non-DCR modules. The move is expected to unlock thousands of rooftop and commercial solar installations that have been stuck in limbo.

Prices Set to Drop as Supply Constraints Ease

The DCR module shortage had caused significant price hikes in recent months. A typical 3-kilowatt domestic solar system, for instance, saw its cost increase by approximately ₹35,000 to ₹40,000. With this new relief, industry experts anticipate a cost reduction of around ₹12,000 per kilowatt.

This direct benefit will extend to beneficiaries of the ambitious Prime Minister Surya Ghar Yojana, making solar energy more accessible and affordable for households nationwide. Solar companies, which had struggled with supply chain issues and escalating costs, will also see immediate advantages.

? Did You Know? India's installed solar capacity has grown exponentially, reaching over 70 GW by early 2024, demonstrating the nation's commitment to clean energy and its vast potential.

Across the country, including states like Rajasthan, countless projects were stalled due to the limited availability of DCR modules. The industry has lauded the government's decision as immediate and necessary relief, though many are also calling for more permanent and practical long-term solutions to ensure sustained growth.

Stay tuned to https://en.mttvindia.com for the latest developments on this and other key policy changes affecting India's energy sector.