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PM Surya Ghar Muft Bijli Yojana Faces Severe Solar Module Shortage, Jeopardizing Rooftop Solar Targets

The PM Surya Ghar Muft Bijli Yojana, launched with the ambitious goal of making one crore Indian households rooftop solar prosumers by March 2027, is confronting a critical obstacle: a severe shortage of solar modules meeting Domestic Content Requirements (DCR). Over a year into the program, just over 10 lakh households have benefited, falling far short of the Ministry of New and Renewable Energy’s (MNRE) target of 35 lakh installations in FY26.

The shortage, caused primarily by Indian manufacturers prioritizing lucrative exports—especially to the U.S.—over domestic supply, is disrupting supply chains, delaying project approvals, and frustrating vendors and customers alike. Export margins for DCR solar modules are reportedly twice those available domestically, incentivizing producers to divert stock abroad despite government encouragement to prioritize local projects.

Furthermore, the program’s portal does not support non-DCR modules even for unsubsidized systems, restricting flexibility and slowing installations. Industry insiders highlight that large EPC players, particularly under the PM KUSUM program, are absorbing significant DCR module capacity, worsening the scarcity for rooftop solar.

This supply crunch has also led to questionable industry practices, such as forced full-kit purchases and warranty evasion through intermediary entities, risking erosion of consumer trust. Rising costs due to anti-dumping duties on imports and a fragmented manufacturing ecosystem compared to centralized Chinese production are further compounding challenges.

Installers note that many customers opt for non-DCR systems, sacrificing subsidies for quicker installations. The MNRE’s delay in revising benchmark prices amid rising costs adds to the strain. Industry leaders call for urgent government mandates requiring manufacturers to prioritize domestic demand to salvage the program’s ambitious targets before the gap between goals and actual progress widens further.