The Centre’s plan to install rooftop solar panels in 75 lakh households by year-end may hit a few bumps due to the limited availability and rising costs of these panels made from domestically-manufactured solar cells.

About 40 lakh rooftop systems have been installed under the PM Surya Ghar: Muft Bijli Yojana so far, adding over 12 gigawatts (GW) capacity. Vendors and installers empanelled under the scheme across multiple states told The Indian Express that they are struggling to procure Domestic Content Requirement (DCR)-compliant solar panels, which are mandatory under the scheme.

Some claimed that the waiting period was 25–30 days.

DCR-compliant solar panels are those in which locally manufactured solar cells — components that convert sunlight into electricity  — are used. Taking cognizance of the issue, Santosh Kumar Sarangi, Secretary at Ministry of New and Renewable Energy (MNRE) on Monday held a meeting with domestic solar cell manufacturers to emphasise the need to ensure adequate availability of domestically-manufactured solar PV cells and DCR solar modules, especially for vendors and installers engaged in setting up of Distributed Renewable Energy (DRE) solar projects like solar rooftop plants and solar agricultural pumps, while also keeping the prices reasonable.

“Ministry of New & Renewable Energy (MNRE), through REC Limited and National Institute of Solar Energy (NISE), is keeping a close eye on the availability and prices of domestically manufactured solar cells and modules and is closely monitoring the situation,” the ministry said in response to queries sent by The Indian Express. “With domestic solar PV cell manufacturing capacity expected to rise substantially in the next few months, the demand supply situation is expected to improve further,” it added.

According to the ministry, prices of DCR solar PV modules — domestically manufactured modules made using domestically produced solar PV cells — have risen in May.

The ministry attributed this price increase in May to a likely surge in demand from developers seeking to commission net-metering and open-access renewable energy projects before the May 31, 2026 deadline, after which the exemption from mandatory domestic cell sourcing requirements expired.

From June 1, the government made it mandatory for all domestic, commercial and industrial solar projects  to use only  locally manufactured solar cells in the solar panels deployed in those projects.

While the move is aimed at reducing India’s dependence on imports and strengthening the domestic solar manufacturing ecosystem, industry stakeholders say it has also exposed a critical supply gap.

India currently lacks sufficient domestic cell manufacturing capacity to meet the rapidly growing demand for solar installations.

In 2025-26, India added around 45 GW of solar capacity. Against an annual solar module production of around 60-65 GW, India’s solar cell manufacturing capacity stands at only about 30 GW. As a result, a significant portion of the country’s module production has historically relied on imported cells.

Even though the Domestic Content Requirement (DCR) has long been mandatory for rooftop solar installations under the PM Surya Ghar scheme, the recent extension of domestic cell sourcing norms to additional segments, including commercial and industrial projects, has significantly

increased demand for solar modules manufactured using locally produced cells.

Industry stakeholders say the sudden surge in demand has outpaced available domestic manufacturing capacity, creating a supply-demand mismatch. This has led to shortages of DCR-compliant modules and a sharp rise in prices, potentially slowing the rollout of rooftop solar systems and other distributed renewable energy projects across the country.

Several vendors who install solar systems under the PM Surya Ghar scheme told The Indian Express that they are grappling with a severe shortage of DCR-compliant solar modules. They said that even when modules are available, prices have risen sharply.

Vendors from Uttar Pradesh, Haryana and Odisha reported waiting periods of 25–30 days for DCR-compliant panels, with many approaching the Ministry of New and Renewable Energy (MNRE) seeking intervention.

“The industry is currently facing a severe shortage of DCR-certified solar modules. Leading manufacturers such as Adani, Waaree, Premier Energies and other major suppliers are operating at full capacity and have long waiting periods for deliveries,” said Vijay Kumar, President of the Solar Ardent Association in Haryana and Managing Director of Indivm Energy Private Limited. According to Vijay, the supply crunch has left many rooftop solar installers across the country struggling to procure modules in the required quantities, leading to delays in project execution and uncertainty for consumers who have already received approvals or made advance payments.