The Indian government has clarified that residential consumers who voluntarily choose to forgo central financial assistance under the PM Surya Ghar scheme are permitted to use non-DCR (domestic content requirement) solar modules for their rooftop solar installations. This clarification was issued on Wednesday, just days after the Ministry of New and Renewable Energy (MNRE) mandated that all solar projects source equipment from the Approved List of Models and Manufacturers (ALMM) List-II effective June 1, a move aimed at reducing dependence on imported solar photovoltaic cells and promoting domestic manufacturing.
Exemption for 'Give It Up' Option
According to the ministerial order, residential rooftop solar consumers who opt for net metering under the 'Give It Up' option—where they voluntarily relinquish subsidy or central financial assistance—will be exempt from the applicability of ALMM List-II. This exemption remains valid only until the conclusion of the PM Surya Ghar Yojana on March 31, 2027. The ministry emphasized that such consumers can continue to apply for rooftop solar installations through the PM Surya Ghar national portal without needing to separately apply on the DCR portal of the National Institute of Solar Energy to claim exemption from ALMM List-II.
Background and Policy Impact
The mandatory ALMM requirement, announced earlier, was designed to curb imports of solar cells and modules, thereby bolstering India's domestic solar manufacturing capacity. However, the new exemption provides flexibility for consumers who prefer non-DCR equipment, often due to cost or technical considerations, as long as they do not seek government subsidies. This policy adjustment is expected to accelerate rooftop solar adoption by removing procurement restrictions for unsubsidized installations, while still promoting domestic content for subsidized projects.
The PM Surya Ghar Yojana, launched to promote rooftop solar across Indian households, offers central financial assistance to eligible consumers. The 'Give It Up' option allows those who can afford to forgo subsidies to install systems without being bound by domestic content norms, thereby widening consumer choice and supporting the scheme's overall goals of expanding solar energy usage.
Industry experts view this as a balanced approach that encourages domestic manufacturing without stifling consumer demand. The exemption is likely to benefit residential consumers in urban areas where import-dependent modules may be more cost-effective or readily available. The government continues to monitor the implementation to ensure that the scheme's objectives are met while fostering a competitive solar market.
