Solar Cell Sourcing Mandate Deferred Until December

The Ministry of New and Renewable Energy (MNRE) has deferred the implementation of mandatory domestic solar cell sourcing requirements until December 31, 2026. This decision aims to facilitate a smoother transition for industry players currently struggling with domestic supply chains. The extension effectively provides a seven-month grace period for solar projects that were previously under pressure to comply by the May 31 deadline.

The shift addresses concerns regarding the limited availability of domestically manufactured solar cells compared to the higher production capacity for solar modules. Currently, India possesses approximately 200 GW of module manufacturing capacity, while cell manufacturing capacity is significantly lower at roughly 30 GW. Industry executives have warned that forced sourcing could create an uneven playing field and disproportionately impact smaller module manufacturers, who lack integrated cell production capabilities.

The extension applies to a wide range of solar projects, including commercial and industrial installations. It also provides relief to the flagship PM Surya Ghar: Muft Bijli Yojana, which risked facing cost escalations and limited availability of rooftop panels due to the strict domestic mandate. Officials hope the extension will stabilize the market while domestic manufacturers scale up their cell production capacities to meet the anticipated future demand in the solar power sector.