Jaipur: Rajasthan’s solar industry is bracing for a turbulent transition after the Centre made it mandatory for solar project developers to procure Domestic Content Requirement (DCR) modules manufactured using Indian-made solar cells from June 1.Currently, a large share of solar cells is imported, making India dependent on other countries and limiting the economic benefits of domestic solar cell manufacturing.While industry representatives support the Centre’s push to promote indigenous cell manufacturing, they said the short deadline leaves manufacturers with little time to scale up production to meet demand and could trigger disruptions in the rapidly growing solar sector.Under the new framework, set to take effect next month, developers will be required to procure costlier DCR modules manufactured using Indian-made solar cells.“We are in sync with the Centre’s vision, but the deadline should have been extended till March next year. Otherwise, many projects in the pipeline — especially rooftop, commercial, industrial and open access — will face delays, disrupting the entire value chain,” said Sunil Bansal, president of Rajasthan Solar Association.The industry estimates that the actual domestic solar cell manufacturing capacity currently stands at around 10,000MW, though on paper it is projected at nearly 30,000MW.India added 38,000MW of solar capacity in 2025, underlining the gap between domestic cell manufacturing capacity and market demand. The supply shortage has also pushed up DCR panel prices.Discussions with industry insiders indicate that wholesale non-DCR modules can be available at Rs 13–15 per watt, while DCR modules are often quoted at Rs 22 per watt or more because of higher domestic manufacturing costs and limited cell availability.Bansal said an independent assessment should be conducted by the Centre to evaluate the existing DCR module manufacturing capacity and demand before implementing the deadline.Highlighting the likely impact of the June 1 deadline, he said the study should also assess the size and viability of projects that could be affected.“It is not just project developers who will be impacted. Panel manufacturers that import solar cells will also be seriously affected,” Bansal added.Many panel manufacturers currently depend on imported cells. “Any restrictions would affect their factories as well,” he said.The impact is expected to ripple through the ancillary manufacturing sector, including industries producing frames, junction boxes and other components, as they may be forced to scale down production.The industry also fears a further rise in DCR module prices, as the market is concentrated among only a handful of players, estimated at around five to seven manufacturers. DCR modules already command a significant premium, and prices are expected to rise further.Solar
