DCR vs Non-DCR Solar Panels: What’s the Difference & Why It Matters for Government Subsidy in India?

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As India accelerates toward clean energy, homeowners are rushing to install rooftop solar—especially with attractive government subsidies. But before choosing a system, one term creates confusion for many: DCR vs Non-DCR solar panels.


If you're planning to apply for a subsidy, this difference can make or break your eligibility.

What Are DCR Solar Panels?

DCR stands for Domestic Content Requirement. These panels are manufactured in India—not just assembled here.

To qualify as DCR:
  1. Solar cells must be made in India
  2. Solar modules must be made in India
These panels support India’s "Make in India" initiative by boosting local manufacturing.

Benefits of DCR Panels:

  1. Eligible for most government subsidies.
  2. Encourages Indian manufacturing.
  3. Ensures product traceability under government norms.

What Are Non-DCR Solar Panels?

Non-DCR panels use:

  1. Imported solar cells, or
  2. Imported solar modules (usually from China, Vietnam, Malaysia, etc.)
These panels are widely used in commercial, industrial, and off-subsidy residential projects.

 Benefits of Non-DCR Panels:

  1. Lower-cost options
  2. Often higher efficiency (e.g., TOPCon, Mono PERC from foreign brands)
  3. Wide availability.

Quick Comparison Table

Why DCR Matters for Government Subsidy-

1. DCR = Mandatory for National Subsidy

  1. Only DCR solar panels are accepted under PM Surya Ghar: Muft Bijli Yojana (2024–25).
  2. Subsidy is approved only if both cells + modules are made in India.

2. Must Be ALMM-Listed

  1. Even DCR panels must appear on the ALMM (Approved List of Models and Manufacturers).
  2. Confirms panel quality, standards, and government compliance.

3. Non-DCR panels = No subsidy

    Imported or Non-DCR panels lead to:
  1.  Subsidy rejection
  2.  Ineligible application
  3. Efficiency doesn’t matter—DCR is the rule.

 4. No subsidy for Commercial/Industrial use

  1. Businesses get zero subsidy, whether DCR or Non-DCR.
  2. That’s why commercial users often choose Non-DCR for better pricing and efficiency.

5. DCR Panels Are the Only Gateway to Savings

  1. Without DCR, you cannot unlock any government subsidy for home solar.
  2. Choosing DCR panels is essential if you want to reduce your solar installation cost.

Final Thoughts

If you're installing solar with subsidy, choose DCR + ALMM-listed panels only.
If you want maximum efficiency at the lowest cost—and don't need subsidy—Non-DCR panels may be better.

Understanding this small difference can save you tens of thousands of rupees and ensure your solar system is subsidy-compliant.

Dipashri Gavali (Patil)