With nearly 51% of India’s installed energy capacity now derived from non‑fossil fuel, primarily solar, sources, one would expect the reliance on coal to reduce, but data shows otherwise. In 2005–06, India’s coal and lignite consumption was 335 million tonnes; today, it has climbed to 1,270 million tonnes.

India’s solar industry, often celebrated as the cornerstone of the country’s clean‑energy ambitions, is shaped by a complex interplay of policy challenges, manufacturing processes, subsidy rules and trade policies, yet these mechanisms often create distortions rather than stability.

To expand the ambit of Atmanirbhar Bharat, as of June 1, 2026, the rules governing solar subsidies were tightened significantly. Under the revised framework, Domestic Content Requirement (DCR) panels, in which both cells and modules are 100% manufactured in India, are now mandatory for all subsidies and for eligibility under the Pradhan Mantri Surya Ghar scheme. In addition, qualifying panels must be listed on both the Approved List of Models and Manufacturers (ALMM): List‑I for modules and List‑II for cells.

This new system has been imposed despite the fact that non‑DCR panels, for which cells are imported, typically from China or Malaysia, remain 12–18% cheaper and often deliver marginally higher efficiency due to access to advanced technologies such as TOPCon and HJT cells.

Imported non‑DCR panels from tier‑1 brands typically range between Rs 13 and Rs 17 per watt. By contrast, DCR panels from approved domestic manufacturers such as Waaree, Adani or Vikram currently cost between Rs 23 and Rs 28 per watt. This increases system prices........

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