Installing a rooftop solar system may become more expensive for households across India.
From June 1, a new government rule requiring the use of domestically manufactured solar cells has come into effect.
While the move is aimed at boosting India’s solar manufacturing industry, it could increase the cost of rooftop solar installations for consumers.
Industry estimates suggest that installation costs could rise by ₹4,000 to ₹6,000 per kilowatt.
For a typical 3-kW rooftop solar system, this could mean paying an additional ₹20,000 to ₹30,000.
Why Are Solar System Prices Increasing?
The government has made it mandatory for solar projects connected through net-metering and open-access systems to use solar cells manufactured in India.
This requirement, known as the Domestic Content Requirement (DCR), is designed to reduce India’s dependence on imported solar equipment and strengthen local manufacturing.
However, domestically produced solar cells and modules are currently more expensive than imported alternatives.
As a result, the overall cost of installing a solar system is expected to rise.
According to energy experts, a standard 3-kW rooftop solar system that previously cost around ₹1.5 lakh could now cost between ₹1.8 lakh and ₹2.1 lakh.
How Much More Will Consumers Pay?
The biggest reason for the price increase is the difference between domestic and imported solar modules.
Industry sources say DCR-compliant solar modules are currently priced around ₹24 to ₹27 per watt.
In comparison, some imported modules are available for as low as ₹13 to ₹15 per watt.
Because of this gap, households, businesses, and industries planning to install solar systems may see higher project costs.
Experts also warn that increased equipment prices could affect project profitability, especially for large solar projects operating under fixed electricity tariffs.
Which States Could Feel the Biggest Impact?
States with large solar installations are likely to be affected the most.
Experts believe Gujarat and Maharashtra could see the biggest impact because they account for a significant share of India’s large-scale solar capacity.
Meanwhile, rooftop solar adoption under the PM Surya Ghar: Muft Bijli Yojana could face additional cost pressure in states such as:
Maharashtra
Uttar Pradesh
Punjab
Higher installation costs may make some households reconsider or delay their solar plans.
Will There Be a Shortage of Solar Equipment?
Solar manufacturers say consumers should not worry about shortages.
According to industry estimates, India currently has around 30 GW of approved solar cell manufacturing capacity.
Domestic demand is expected to remain between 20 GW and 25 GW during FY27.
In addition, nearly 30 GW of new manufacturing capacity is expected to become operational between June and September this year.
Industry representatives believe this should be enough to meet demand and support the government’s solar expansion plans.
Experts Warn of Temporary Supply Challenges
Despite industry confidence, some experts believe there could be short-term supply issues.
Advanced solar technologies such as TOPCon and HJT cells may face temporary shortages as demand rises rapidly under government schemes like PM Surya Ghar.
The scheme aims to support more than 10,000 rooftop solar installations every day, which could increase pressure on the supply chain during the transition period.
What Does This Mean for Homeowners?
For consumers planning to install rooftop solar systems, the new rules may increase upfront costs in the short term.
However, the government believes the policy will help build a stronger domestic solar manufacturing ecosystem, create jobs, and reduce dependence on imported solar cells in the long run.
While buyers may have to spend more initially, the move is expected to support India’s goal of becoming more self-reliant in renewable energy production.
Bottom Line
Rooftop solar systems are likely to become more expensive due to the new domestic sourcing rules.
A typical household installing a 3-kW system could end up paying ₹20,000 to ₹30,000 more than before.
Although the higher costs may impact some buyers in the short term, the policy is seen as an important step toward strengthening India’s solar manufacturing industry and reducing reliance on imports.
