The Ministry of New and Renewable Energy (MNRE) has issued the updated Domestic Content Requirement (DCR) norms for solar cells.

According to the revised guidelines, a solar cell based on crystalline-silicon technology will be considered domestically manufactured only if produced in India using an undiffused silicon wafer, commonly known as a black wafer. These wafers fall under Customs Tariff Head 3818, and all manufacturing processes involved in converting them into solar cells must be carried out within India.

However, cells manufactured in India from an imported diffused silicon wafer, commonly called a blue wafer, will not qualify as domestically manufactured under MNRE programs.

Thin-film solar modules are exempted from this rule. Such modules manufactured in Indian integrated factories will remain eligible under DCR-mandated programs.

In December last year, MNRE introduced List-II for solar cells under the Approved List of Models and Manufacturers (ALMM) which is set to be effective from June 1, 2026. The inclusion of solar cells in the ALMM marks a significant shift, as the list previously covered only solar modules.

Mercom had written about how concerns persist about the limited supply and rising costs of DCR-compliant solar modules, which have impacted key government initiatives such as the PM Surya Ghar: Muft Bijli Yojana and the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan. Module manufacturers have pointed out that the primary cause of this shortage is the limited availability of DCR-compliant solar cells, which constrains overall module production.

According to Mercom’s State of Solar PV Manufacturing in India 1H 2024 report, India added 11.3 GW of solar module manufacturing capacity and 2 GW of solar cell capacity in the first half of 2024. This growth was driven by the reinstatement of the ALMM mandate in April 2024 and a robust solar project pipeline of 132.7 GW planned between 2024 and 2026.