Exempt Off-Grid Market From DCR Mandate, Say Module Manufacturers

Solar module manufacturers from Uttar Pradesh said that the government should consider exempting the Domestic Content Requirement (DCR) mandate from the off-grid solar sector. This, they said, could open new opportunities for the small-scale module manufacturers and create more opportunities for the local EPC companies. 

The experts from speak at the Solar Trailblazers event in Lucknow, organised by Saur Energy. The companies talked about the direct impact on the business avenues of smaller and mid-scale solar module manufacturers with the DCR mandate. The government currently mandates the use of only DCR cell-based modules for several government projects, while with the introduction of the Approved List of Models and Manufacturers (ALMM) for solar cells, the issue is likely to be stringent. This comes at a time when the manufacturing industry is affected by the shortage of DCR cells for their manufacturing. 

More Flexibility Needed 

Samarth Wadhwa, CEO and Director of Ritika Systems Pvt Ltd, urged the government to adopt a more flexible approach for the off-grid solar segment, suggesting that non-DCR modules be permitted for such projects.

“India’s DCR cell capacity stands at around 13 GW and is growing, but until the ecosystem stabilises, allowing non-DCR modules for off-grid applications could prevent project delays and support small EPC players,” Wadhwa said.

Ritika Solar, which is setting up a new manufacturing facility in Ghaziabad, said that UP’s proximity to NCR, strong road connectivity, and growing solar demand make it an attractive investment destination for manufacturers.

While some industry players argue that the DCR mandate is essential to boost India’s domestic manufacturing base, others believe it is slowing down small-scale production due to the limited supply of DCR cells.

Allow Non-DCR Until DCR Cell Market Matures

Akshat Jain, CEO of KLK Ventures, said that Uttar Pradesh, Bihar, and Haryana have strong market potential for solar manufacturing due to their growing demand and better connectivity. However, he noted that manufacturing growth struggles, especially for the low-scale module makers, with the shortage of DCR cells emerging as a key obstacle.

“For small module makers, DCR cell availability is a bottleneck. Some units are sitting idle while others struggle with working capital. Until there is sufficient DCR cell supply, the government should reconsider making their use mandatory across projects,” Jain said.

He added that non-DCR modules could cater to a sizeable market segment, allowing smaller manufacturers to stay competitive and maintain liquidity in a tight working capital environment.

UP Policies For Manufacturing Matured

From a policy perspective, Upkari Nath, Adviser to UPNEDA, said that Uttar Pradesh’s approach focuses on driving local demand first, which in turn fuels manufacturing growth.

“In the last three months, over 87,000 rooftop solar plants were installed in the state — the highest in India,” Nath said. “Schemes like rooftop solar and PM-KUSUM are creating consistent demand, while the state’s industrial policy provides incentives and dedicated support for manufacturers.”

As UP accelerates its solar rollout, the debate over DCR flexibility could determine how effectively small and mid-sized manufacturers are integrated into India’s domestic solar manufacturing ecosystem.