MNRE Clarifies DCR Guidelines For Domestically Manufactured Solar PV Cells And Modules

Introduction

The Government of India, Ministry of New & Renewable Energy (MNRE), has issued a clarification of the Domestic Content Requirement (DCR) standards for solar photovoltaic (PV) cells and modules under its schemes.^[1] Through an Office Memorandum (O.M. No. 283/134/2017-GRID SOLAR) dated March 11, 2025, the ministry reiterated strict standards to satisfy domestic manufacturing needs. This step aims to increase India’s domestic ability in the production of solar technology, develop in line with the Atmanirbhar Bharat (Self-Reliant India) vision, and ease the implementation of renewable energy projects under MNRE schemes.

Explanation (Key Points)

Definition of Domestically Manufactured Solar PV Cells
A solar PV cell qualifies as “domestically manufactured” only if:
It is produced in India using undiffused silicon wafers (classified as “Black Wafers” under Customs Tariff Head 3818).
All manufacturing processes, from the undiffused wafer stage to the finished cell, are carried out within India.
This ensures that critical value-addition steps, such as diffusion and metallization, occur domestically, preventing reliance on imported semi-processed materials.

Exclusion of Imported Diffused Wafers

Blue Wafers, solar PV cells produced from imported diffused silicon wafers, are not eligible for DCR.
This limitation stops producers from evading local manufacturing through the importation of pre-diffused wafers, which have been partially processed, thus ensuring total in-house production.

Exception for Thin Film Solar PV Modules

Thin Film Solar PV Modules manufactured in integrated factories in India are still eligible for DCR-compliant projects.
This exception recognizes the technological sophistication involved in thin-film manufacturing and encourages manufacturers who set up end-to-end units in India, even if inputs are imported.

Reiteration of Previous Guidelines

The memorandum reinforces an earlier clarification (O.M. dated May 9, 2024), emphasizing continuity in policy and reducing ambiguities for stakeholders.

Compliance and Enforcement

The guidelines are applicable to all MNRE programs, including those by agencies such as SECI and IREDA.
Solar manufacturers have to follow these standards to be eligible for government tenders and incentives related to DCR mandates.

Conclusion

MNRE’s fresh clarification boosts the DCR mechanism to prefer genuine domestic production of solar PV cells and modules. Through insistence on use of undiffused wafers and end-to-end in-house processing, the policy abhors mere assembling of foreign inputs and encourages indigenous technological capability. The thin-film module exception makes a balancing effort between innovation and local production aspirations. These measures are in conformity with the overall aims of India in terms of import reduction, a robust renewable energy industry, and achieving its 500 GW non-fossil goal by 2030. Project developers and manufacturers need to adhere to these guidelines in order to participate in MNRE-supported projects and facilitate the country’s sustainable energy revolution.
 

^[1] https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2025/03/20250311305301738.pdf