When the PM Surya Ghar Muft Bijli Yojana was launched, it aimed to empower 10 million Indian households to become prosumers—producing their rooftop solar energy—by March 2027. Yet a year into the rollout, only around 1 million installations have been completed, leaving the ambitious FY 2026 target of 3.5 million rooftops far out of reach

1. Domestic Content Requirements (DCR): A Double‑Edged Mandate

Central to the scheme is the requirement that solar modules be manufactured domestically (DCR compliant). Yet developers are increasingly switching to non‑DCR alternatives—by forgoing subsidies—to keep projects moving, due to serious shortages in eligible module supply

2. Export Boom Diverts Domestic Supply

Market insiders report that 80–90% of India’s DCR cell production is being prioritized for export markets like the U.S., where tariffs and profit margins (25–50%) dwarf domestic returns (10–12%). The result? Rooftop developers are left waiting.

3. Ripple Effect: Delays, Frustration, and Higher Costs

  • Loan sanctions and EMIs proceed, while installations stall—leaving consumers stuck in limbo

  • DCR modules now cost up to ₹12/W more than non‑DCR ones. Combined with new import duties on solar glass, overall system prices are climbing .

  • Some manufacturers bundle full-system kits or use opaque shell companies—undermining choice, transparency, and after-sales service trust .

4. Broken Alignment: Policy vs Portal Infrastructure

While MNRE allows non-DCR modules for unsubsidized grid-connected rooftop systems, the official Surya Ghar platform doesn’t support them. This digital bottleneck further compromises project progress

5. Systemic Shortfalls in Indian Manufacturing

India’s solar ecosystem lags behind global leaders like China. Limited cell-producing capacity, modular supply chain fragmentation, costly inputs, and fragmented logistics all put pressure on producers. Benchmark costs remain outdated despite rising market prices—but MNRE has yet to act

Why This Matters for Our Industry

  • Installation delays translate to lost daily energy generation, undermining both ROI and confidence among stakeholders.

  • Subsidy bypassing—choosing non-DCR panels—means consumers lose out on financial benefits designed to spur adoption.

  • Market trust takes a hit when post-sale service is compromised, which damages long-term reputation and growth.

Strategic Interventions That Could Flip the Script

  1. Mandate domestic sales quotas for DCR manufacturers to ensure local supply before exporting.

  2. Align platform rules with policy—enable non-DCR configurations where allowed to reduce bottlenecks.

  3. Update benchmark costs promptly, reflecting real market prices to avoid subsidy mismatches.

  4. Offer incentives (tax breaks, PLI bonuses) for firms reserving capacity for domestic rooftop markets.

  5. Promote supply aggregation such as group procurement, making DCR sourcing more viable for SMEs.

Looking Ahead

Without immediate action, the PM Surya Ghar initiative risks falling short of its transformational promise. What began as an uplifting mission to democratize solar energy is in danger of stalling due to mismatched policy tools and market mechanics.

By proactively reforming sourcing mandates, digitizing processes more inclusively, and leveling the economics, stakeholders can reignite the rooftop solar revolution—keeping the power flowing to India’s homes.

Final Thought

India’s journey towards energy self-reliance will only succeed if its enabling frameworks work in harmony with market realities. DCR mandates should uplift manufacturing without sidelining implementation. A fair, transparent, and supply-backed approach will ensure that every rooftop lights up with pride—and power.

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