Challenges in Rooftop Solar Panel Installation in India

The Indian government's ambitious plan to install rooftop solar panels in 75 lakh households by the end of the year is facing challenges due to issues with the availability and cost of domestically manufactured solar panels.

Current Progress and Challenges

• So far, approximately 40 lakh rooftop systems have been installed under the PM Surya Ghar: Muft Bijli Yojana, adding over 12 GW of capacity.
• There is a struggle to procure Domestic Content Requirement (DCR)-compliant solar panels, which are mandatory for the scheme, with waiting periods of 25–30 days reported.
• DCR-compliant panels require the use of locally manufactured solar cells.

Government and Market Responses

• The Ministry of New and Renewable Energy (MNRE) is actively working with domestic manufacturers to ensure adequate availability of solar PV cells and DCR modules.
• MNRE is monitoring the prices and availability of domestically manufactured solar cells and modules through REC Limited and the National Institute of Solar Energy (NISE).
• Domestic solar PV cell manufacturing capacity is expected to rise soon, potentially improving the demand-supply situation.

Recent Market Dynamics

• Prices of DCR solar PV modules varied between March and May 2026, with a decline in March and April followed by a rise in May, attributed to increased demand from developers before regulatory deadlines.
• From June 1, 2026, the use of locally manufactured solar cells became mandatory for all domestic, commercial, and industrial solar projects.

Industry Observations

• India's solar cell manufacturing capacity, currently at around 30 GW, is insufficient to meet the demand for solar installations, despite an annual solar module production of 60-65 GW.
• The extension of domestic cell sourcing norms has increased the demand for DCR-compliant modules, exacerbating supply issues and price hikes.

Impact on Vendors and Consumers

• Vendors from states like Uttar Pradesh, Haryana, and Odisha report long waiting periods and rising costs for DCR-compliant panels, with a reported price increase of 20-23% since the mandate became effective.
• This price hike has increased the cost of installing a rooftop solar system for a household by at least Rs 20,000, impacting consumers and installers financially.