SECI Announces Winners of 6 GWh Peak Power Supply Auction

IREDA’s Q1 Revenue Up 15% on Higher Loan Interest Accruals

ABRen Secures $1.6 Billion from MUFG to Fund Sprng Energy Acquisition

Coal India Seeks ₹7 Billion Term Loan for 750 MWh Battery Storage Project

GMIDC Tenders 150 MW Floating Solar Plus 150 MWh Battery Storage Project

GAIL Invites Bids to Augment 5 MW Solar Project in Rajasthan

PFC Consulting Awards Project to Evacuate 14 GW of Renewables in Gujarat

PFC Consulting Tenders Transmission Project for 400 kV Substation in Rajasthan

Grid India Issues New Procedure for Secure Operation of National Grid

Madhya Pradesh Lays Out Banking SOP for Green Energy Open Access Consumers


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2026/08/amazon_polly_102919.mp3?version=1787030524">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The widening price gap between Domestic Content Requirement (DCR)-compliant and non-DCR modules is reshaping procurement and investment decisions across India&#8217;s solar industry. Higher module prices, constrained domestic cell availability, and longer delivery timelines are increasing project costs, delaying financial closures, compressing installer margins, and slowing project execution across the residential, commercial and industrial (C&amp;I), and utility-scale segments.</p>
<p>Developers are also increasingly prioritizing supplier reliability, delivery timelines, and assured access to DCR-compliant modules over price alone to minimize risks.</p>
<p>Industry participants expect these pressures to ease as additional domestic cell manufacturing capacity comes online, but believe procurement and supplier selection practices have undergone a more lasting shift.</p>
<p><strong>Widening Price Gap </strong></p>
<p>Developers said that while non-DCR module prices remained stable, DCR module prices continue to command a substantial premium.</p>
<p>The implementation of the Approved List of Models and Manufacturers (ALMM) List-II for solar cells has further tightened module availability and curtailed procurement flexibility for installers and developers.</p>
<p>According to a rooftop installer, “The implementation of ALMM-List II, alongside persistent volatility in module prices, has created significant disruption across the rooftop solar ecosystem. The absence of a phased transition has left stakeholders with limited time to adjust procurement strategies and comply with the revised regulatory framework, slowing project execution and increasing operational challenges. The combined effect of regulatory uncertainty and supply chain disruptions is also weakening customer confidence, potentially affecting the pace of rooftop solar adoption in the near term.”</p>
<p>Despite rising input costs, rooftop solar installers have been unable to proportionately increase system prices because of intense competition from new market entrants offering steep discounts.</p>
<p>As a result, installer margins have come under pressure, while concerns are growing over installation quality and the sustainability of long-term after-sales support.</p>
<p>Speaking on the sidelines of the recently concluded <a href="https://www.mercomindia.com/event/mercom-india-renewables-summit-2026" target="_blank" rel="noopener">Mercom India Renewables Summit 2026</a>, Amit Barve, CEO at <a href="https://rayzonsolar.com/" target="_blank" rel="noopener">Rayzon Solar</a>, said, “The shortage is real because demand for DCR-compliant cells is increasing. Within this category, demand is particularly high for TOPCon cells. Much of the existing domestic cell capacity is based on older monocrystalline technology, while demand is increasingly shifting toward TOPCon cells.”</p>
<p>“The market has begun accepting that sufficient TOPCon cell capacity may not be available until projects under construction are commissioned, stabilized, and operating at their intended capacity. The mismatch between demand and available cell capacity will therefore continue for some time,” he added.</p>
<p>Speaking at an event organized by the Confederation of Indian Industry, the Ministry of New and Renewable Energy (MNRE) Secretary, Santosh Sarangi, said India’s solar cell manufacturing capacity is expected to rise to 100 GW within a year from the current 32 GW.</p>
<p>According to Hanish Gupta, Founder and Managing Director at <a href="https://www.sunkind.in/" target="_blank" rel="noopener">Sunkind India</a>, DCR modules are trading above ₹20 (~$0.21)/Wp, which is nearly 50% higher than what he considers the fair market price for non-DCR modules.</p>
<p>“Based on current raw material costs and prevailing market conditions, non-DCR modules should ideally be in the ₹13 (~$0.137)/Wp-₹14 (~$0.147)/Wp range. However, many manufacturers are currently resorting to aggressive pricing, and in some cases even selling below sustainable levels, to liquidate inventory ahead of the December 2026 deadline for the use of non-DCR modules in net-metering and open-access projects.”</p>
<p>Gupta said the current price gap is therefore not a true reflection of underlying market economics. Instead, it is being distorted by two temporary factors: an oversupply of non-DCR modules and a shortage of domestic cells for DCR module production.</p>
<p>He expects DCR module prices to decline to around ₹16 (~$0.168)/Wp to ₹17 (~$0.179)/Wp by early 2027 as additional domestic cell capacity comes online.</p>
<p>Gupta said that over the medium term, DCR modules will trade much closer to non-DCR modules, with a more modest premium of around 10% to 20%. At that stage, the impact on overall project costs should be limited, and developers are likely to focus more on project execution, financing costs and energy generation than on module prices alone.</p>
<p><strong>Project Execution Slows</strong></p>
<p>Project execution has also slowed as delays in bank loan disbursements continue to postpone customer approvals, further weakening confidence in residential rooftop solar investments.</p>
<p>According to another rooftop installer, “The residential rooftop segment has been particularly affected by DCR module shortages. Although customer demand and order pipelines have remained healthy, limited availability of DCR-compliant modules has significantly reduced installation activity, especially in the subsidized residential segment where DCR modules are generally mandatory.”</p>
<p>“Under normal market conditions, installers completed around 150 residential rooftop installations each month. With the supply squeeze, monthly installations have declined to approximately 50-60 systems,” he said.</p>
<p>Competition from utility-scale developers procuring high-wattage TOPCon modules has further constrained supplies for rooftop installers, stretching delivery timelines, reducing installation volumes, narrowing margins, and delaying customer purchasing decisions.</p>
<p>While non-DCR modules remained available for certain non-subsidized residential and government applications, they could not offset the supply shortfall, as most residential demand remained concentrated in subsidized systems that required DCR-compliant modules.</p>
<p>Mahesh Bhatewara, Senior Manager, Business Development at <a href="https://bubenergy.com/" target="_blank" rel="noopener">B.U. Bhandari Energy</a>, said, “We&#8217;re now looking at ₹25 (~$0.263)/Wp- ₹28 (~$0.294)/Wp for DCR modules, compared to ₹14 (~$0.147)/Wp- ₹16 (~$0.168)/Wp for non-DCR modules. That&#8217;s a gap of ₹11 (~$0.116)/Wp to ₹12 (~$0.126)/Wp in many cases, and for a 1 MW project, that alone can add around ₹12 million (~$126,018) to the module cost.”</p>
<p>For projects that are locked into fixed-price DCR contracts signed a few months earlier, the impact on margins has been significant.<br />
“We&#8217;ve had to go back and review proposals, and have detailed discussions with clients around the policy changes and how they impact pricing.”</p>
<p><strong>Gradual Recovery</strong></p>
<p>Industry experts expect the market recovery to be gradual.</p>
<p>According to an independent power producer<strong>, </strong>the non-DCR module market is becoming more competitive as several small-sized and mid-sized manufacturers cut prices to clear inventory backlogs, resulting in shorter delivery timelines. Manufacturers are also entering cross-selling arrangements with other suppliers to optimize logistics and improve module availability.</p>
<p>“For private, non-subsidized projects, non-DCR modules still make sense; they&#8217;re cheaper and often more efficient, since they use globally sourced cells. Six months from now, I don&#8217;t see this gap closing. Cell capacity takes time to build, so I&#8217;d expect DCR prices to stay firm through the rest of 2026. Real relief will probably come only in 2027, once new domestic cell lines are fully operational,&#8221; Bhatewara said.</p>
<p>The procurement of DCR modules is therefore likely to remain challenging in the near term. Longer delivery timelines and recent price increases are complicating procurement planning and project execution, increasing uncertainty around project economics.</p>
<p>Developers are being forced to balance compliance with domestic sourcing requirements against higher procurement costs and evolving market conditions, while waiting for additional cell capacity to ease supply pressures and narrow the DCR price premium.</p>


India’s DCR Solar Push Is Creating a Cost and Supply Crunch


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2026/07/amazon_polly_101869.mp3?version=1784711943">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>For manufacturing industries with continuous and energy-intensive operations, rooftop solar can reduce electricity costs during daylight hours, when production demand is typically high. Generating power close to the point of consumption reduces dependence on grid-supplied electricity and associated transmission losses.</p>
<p>Rooftop solar also improves energy cost visibility, limits exposure to future tariff increases, lowers carbon emissions, and uses existing roof space without disrupting manufacturing operations.</p>
<p>Recognizing the benefits of rooftop solar, packaging materials and solutions company <a href="https://www.uflexltd.com/" target="_blank" rel="noopener">Uflex</a> installed a 2,909 kW system at its facility in Dharwad, Karnataka, to reduce its electricity costs.</p>
<p><a href="https://sunkind.in/" target="_blank" rel="noopener">Sunkind India</a> developed and installed the project under an operational expenditure model, allowing Uflex to source solar power without making an upfront capital investment.</p>
<p>The facility used to consume about 100,000 units of electricity before the rooftop project was installed. Its monthly electricity expenditure was approximately ₹2.5 million (~$25,902).</p>
<p>The rooftop solar project is expected to reduce Uflex&#8217;s electricity costs by about ₹1.5 million (~$15,541) per month.</p>
<p>The installation uses Jinko Solar modules and Sungrow inverters. The project supports Uflex&#8217;s efforts to reduce its dependence on grid power and secure lower energy costs for its operations.</p>
<p>Sunkind faced manpower constraints during construction due to the project&#8217;s location. The company managed workforce deployment and site coordination to complete the installation.</p>
<p>Uflex manufactures flexible packaging, packaging films, aseptic liquid packaging products, printing cylinders, holographic products, chemicals, adhesives, coatings, and packaging machinery. Its film portfolio includes biaxially oriented polyethylene terephthalate, biaxially oriented polypropylene, and cast polypropylene films.</p>
<p>Mercom India also hosts a pan-India C&amp;I Clean Energy Meet series, bringing renewable energy developers and commercial and industrial power consumers together to discuss clean energy adoption. The next event in the series will be held in <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2026-hyderabad" target="_blank" rel="noopener">Hyderabad</a> on August 21, 2026.</p>


Rooftop Solar Gives Packaging Company Uflex a Cost-Cutting Edge

sunkind-india

Get the most relevant India solar and clean energy news.

RECENT POSTS