The average system cost of large-scale solar projects showed mixed trends across module technologies during Q1 2026, with Chinese module-based projects recording cost increases, while several Indian and DCR-based configurations remained stable or declined marginally.

System costs increased across all Chinese module technologies in Q1 2026. Projects using Chinese TOPCon modules experienced the sharpest increase, with costs rising 4.2% quarter-over-quarter, driven by higher cell prices and sustained demand for high-efficiency modules. Projects using Chinese mono PERC modules were less affected, with system costs increasing 1.2% during the quarter.

Chinese module prices rose during the quarter following earlier export rebate reductions and the announcement that export rebates would be fully withdrawn effective April 2026. The move created pricing pressure across the global solar supply chain and increased procurement costs for projects sourcing Chinese modules. Even with the increase, Chinese modules continued to maintain a significant price advantage over domestically manufactured modules in India.

Projects using Indian mono PERC modules recorded consistent QoQ declines in system costs during Q1 2026, while projects deploying Indian TOPCon modules saw a marginal increase in costs.

Projects using Indian DCR modules continued to maintain a pricing premium and remained the most expensive configurations across all module technologies. However, project costs for both DCR mono PERC and TOPCon modules declined marginally by 0.7% in Q1 2026.

System cost movements across technologies ranged from a decline of over 0.7% to an increase of 4.2%, highlighting divergent in pricing trends during the quarter. Despite these variations, the overall cost structure remained largely unchanged, with projects using Chinese modules continuing to maintain a clear pricing advantage over Indian and DCR-compliant alternatives.

Chinese mono PERC modules accounted for the lowest share of overall system costs at 40%, reflecting the continued pricing advantage of imported modules supported by large-scale manufacturing capacity, integrated supply chains, and lower procurement costs.

In contrast, Indian TOPCon DCR-compliant modules accounted for the largest share of total system costs at 62%, driven by elevated domestic cell and module prices, limited manufacturing scale, and the additional procurement premium associated with DCR compliance.

Large-scale solar projects deploying Indian mono PERC modules remained a mid-cost configuration in Q1 2026. These projects were 4.2% lower in cost than projects using Indian TOPCon modules, primarily due to lower module prices, while balance-of-system and other soft-cost components remained largely similar between the two technologies.

Compared to Indian DCR-compliant variants, projects using Indian mono PERC modules were around 32%-36% lower in cost, positioning them as a relatively cost-competitive domestic sourcing option with lower import dependence. Meanwhile, Indian TOPCon-based projects remained around 9%-16% more expensive than comparable Chinese module-based systems but were still 26%-30% cheaper than Indian DCR-based installations, offering higher module efficiency with comparatively moderate capital costs.

The cost of power conditioning units, primarily solar inverters, increased marginally by 0.4% in Q1 2026, accounting for 4.4% to 6.8% of the total system cost of large-scale solar projects. Module mounting structure (MMS) costs recorded a sharper 2.2% increase in Q1 2026, driven by higher aluminum and steel/galvanized iron prices, along with strong demand that put pressure on domestic fabrication capacity and extended lead times. MMS accounted for about 4.7% to 7.3% of total project costs.

Meanwhile, other balance-of-system (BoS) components remained largely stable, contributing a relatively small share of overall project costs, ranging from 1.2% to 1.9%.

These findings are from Mercom’s Q1 2026 India Solar Market Update, a 113-page report that provides an in-depth assessment of India’s solar sector, covering project costs and installations, supply chain trends, policy developments, and market forecasts.

For the complete report, visit: https://www.mercomindia.com/product/q1-2026-india-solar-market-update