The Ministry of New and Renewable Energy (MNRE) has issued updated domestic content requirement (DCR) norms for solar cells. It has specified that only those based on crystalline-silicon technology and manufactured in India using an undiffused silicon wafer (black wafer) will qualify as domestically produced. These wafers fall under Customs Tariff Head 3818, and all manufacturing processes, from wafer to solar cell, must be conducted within India.
However, solar cells made using imported diffused silicon wafers (blue wafers) will not be eligible under MNRE’s DCR-mandated programmes. Thin-film solar modules are also exempted from this requirement. Such modules manufactured in Indian integrated factories will continue to qualify under DCR mandates.
Concerns remain over the limited supply and rising costs of DCR-compliant solar modules, which have reportedly impacted key government initiatives, including the PM Surya Ghar: Muft Bijli Yojana and the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan. The supply constraints pose challenges for the implementation of these large-scale renewable energy schemes, potentially affecting project timelines and investment strategies in the sector.
