Rajasthan: Rooftop Solar Prices Could Rise by up to 35%, New Rule to Come into Effect from 1 June

Rooftop solar prices in Rajasthan could rise by up to 35% as new mandatory DCR module rules come into effect from 1 June. Discover how the shift to indigenous solar cells will impact consumer costs and project timelines.

Solar Panel Price Hike: Electricity consumers in Rajasthan aiming to reduce their power expenses are set to face a significant setback. From 1 June, it will be mandatory to install indigenous solar module cells (DCR) in solar projects across the state.

Consequently, all new solar panels will be entirely domestically manufactured. This deadline set by the Ministry of New and Renewable Energy has sparked concern within the solar industry, as it will directly impact domestic consumers installing rooftop solar.

Developers and industry organisations state that domestic production capacity for DCR modules is far below current demand, which could increase solar project costs by 25% to 35%. Solar developer associations have written to the Energy Department and the Ministry expressing the need to extend the deadline, warning that failure to do so could stall several solar projects.

Impact on Consumers
According to experts, the actual domestic production capacity for DCR modules is currently 15–20 GW, while annual demand has reached approximately 50 GW. This massive gap between demand and supply is driving up module prices. Developers note that, until now, many rooftop systems exceeding 5 kW capacity were being installed using lower-cost non-DCR modules. With this option being eliminated, rooftop solar is expected to become significantly more expensive for the general public, potentially pushing it out of reach for average consumers and leading to higher electricity bills.

Solar developers claim that while non-DCR modules are available at ₹13–₹15 per watt, DCR modules are priced at ₹22 per watt or higher. They have called for an independent assessment of DCR production capacity versus market demand.
Previous Cost (5 kW): Approx. ₹2.40 lakh (without subsidy)
New Estimated Cost (5 kW): Approx. ₹3.05 lakh
Price Increase: Consumers will have to shell out an additional ₹65,000 for a 5 kW system.
This sharp rise is expected to discourage ordinary consumers from adopting solar energy.

Solar Association and Developers Seek Extra Time
"The effort to increase the manufacturing of solar equipment within the country is commendable, but the market is not yet fully prepared. Once the new rule is implemented, solar panels could become expensive, and the pace of many solar projects will slow down. This will affect rooftop solar systems in homes, shops, and industries. It should be implemented in a phased manner."
— Nitin Agarwal, CEO, Rajasthan Solar Association