India's Local-Content Solar Policy Raises Costs, Slows Project Timelines
What Happened
Since June 2026, many solar projects have been required to use domestically manufactured cells and modules under India's self-reliance policy. A widening price gap between DCR-compliant and non-DCR modules, combined with limited domestic cell availability, is increasing procurement costs and extending delivery timelines for residential, commercial, industrial, and utility-scale projects.
Key Takeaways
India's solar sector is facing a short-term trade-off: stronger domestic manufacturing and supply-chain security on one hand, but higher project costs and tighter equipment availability on the other. The success of the policy will depend on how quickly local cell manufacturing scales up to meet growing demand.