Non-DCR Solar Panels After June 2026: What's Actually Banned, What's Still Allowed

Updated (April 13, 2026): The June 1 deadline remains firm — no extensions announced. ALMM List II has now been revised five times (most recently February 13, 2026), expanding the certified cell manufacturer pool. However, the core supply gap remains: India's certified domestic cell capacity covers under 13% of its module production capacity. EPCs with pipeline projects commissioning after June 1 should verify their supplier's current listing status and lock supply before May 15.

The Confusion Is Real — And It's Costing EPCs Money

Since late 2025, the phrase "Non-DCR panels will be banned from June 2026" has been spreading through WhatsApp groups, YouTube channels, and installer networks across India. Some of it is accurate. Most of it is oversimplified. And when EPCs make procurement decisions based on incomplete information, the financial consequences can be severe.

Here is what the Ministry of New and Renewable Energy (MNRE) has actually mandated, and what it means for your projects right now.

What Is Actually Happening on June 1, 2026

ALMM List II — the Approved List of Models and Manufacturers for solar PV cells — becomes mandatory for most projects commissioned on or after June 1, 2026. This is not a blanket ban on non DCR panels in all contexts. It is a mandate that for government backed projects and net metered or open access installations, the modules used must be made from cells that appear on ALMM List II, which are, by definition, domestically manufactured cells.

Specifically, projects covered by the mandate include: all government tender projects, PM Surya Ghar residential rooftop installations, PM KUSUM components B and C, and any solar project applying for open access or net metering benefits. For purely private behind-the-meter C&I projects, EPCs should verify applicability against the latest MNRE clarification before procurement.

The Supply Squeeze Nobody Saw Coming

Here is the number that should concern every EPC with post June pipeline projects: India's total solar module manufacturing capacity is approximately 172 GW (as of March 2026). Its ALMM List II certified domestic cell capacity is approximately 26.5 to 27 GW — covering about 15% of module production capacity. The certified cell pool is growing: MNRE has revised ALMM List II five times since its first publication in July 2025, most recently on February 13, 2026, adding new manufacturers with each revision. But even with continued additions, the gap between module demand and compliant domestic cell supply is substantial heading into the June deadline.

What this means in practice: the subset of modules that will be ALMM List II compliant after June 1 is significantly smaller than total module supply. As the deadline approaches, demand for those compliant modules will concentrate. EPCs who wait until May or June will find themselves competing for a constrained pool of certified stock at elevated prices and with longer lead times. The time to lock supply is now — not when your project timeline makes it urgent.

The 16-Digit Certificate Requirement

One detail that many EPCs are not yet tracking: MNRE has amended the ALMM order to require a unique 16-digit certificate for every DCR module claimed under government schemes. This traceability requirement — managed through the national DCR Verification Portal operated by the National Institute of Solar Energy — is now the exclusive mechanism for DCR verification. If a manufacturer cannot provide this certificate with module documentation, the module will not pass compliance review regardless of its technical specifications or claimed domestic origin. Ask your module supplier for their portal registration status and certificate issuance process before placing any order for post June projects.

Check Your Supplier's Current ALMM List II Status

Because ALMM List II is updated frequently — five revisions in eight months — a supplier who was not on the list in November 2025 may be listed now. The reverse is also possible: listing criteria and efficiency thresholds can result in removals as well as additions. Every EPC should verify their primary module supplier's listing status against the most recent revision (currently the 5th revision, dated February 13, 2026) before locking supply for any post June project. The MNRE ALMM portal is the authoritative source.

Three Actions to Take Before May 15

• Audit your post June pipeline. For every project expected to commission after June 1, confirm whether it falls under the mandate — government tender, PM Surya Ghar, PM KUSUM, open access, or net metered. Non subsidy, non scheme private installations are currently exempt but should be flagged for monitoring.
• Lock ALMM List II compliant supply now. Contact certified vendors, confirm they appear on the current revision of List II, and request their 16-digit traceability certificate process. Expect lead times to lengthen and pricing to firm as June approaches.
• Update all affected client proposals. Any proposal for a subsidy linked or net metered installation that references non DCR modules needs to be revised before the client accepts. Installations using non compliant modules will have subsidy claims rejected — creating a client relations problem the EPC will own.
  

Frequently Asked Questions

The most common questions EPCs are searching for — answered with specific, actionable information.

What is difference between DCR and Non DCR solar panels?

DCR (Domestic Content Requirement) panels are modules made from solar cells that are manufactured in India and certified under the ALMM framework. Non DCR panels are modules made from imported cells — typically from China, which supplies majority of India's solar cell demand. The key distinction under the June 2026 mandate is not where the module is assembled, but where the cell inside it was made. A module assembled in India from Chinese cells is non DCR. A module assembled in India from Indian cells certified under ALMM List II is DCR compliant.

Will Non DCR panels be completely banned from June 1, 2026?

No — this is the most common misunderstanding. Non DCR panels are not banned in all contexts. The mandate applies specifically to projects that are government tendered, subsidy linked (PM Surya Ghar, PM KUSUM), or benefit from grid incentives such as open access or net metering. Purely private commercial or industrial installations — where the project has no government scheme connection and no subsidy claim — are currently not covered by the mandate. However, all rooftop installations that connect to the grid for net metering purposes are covered, which is the vast majority of residential and most commercial rooftop work.

What happens if I install Non DCR modules in PM Surya Ghar project after June 1?

The subsidy claim will be rejected. PM Surya Ghar provides a subsidy of up to Rs 78,000 per household. That subsidy is only released after the installation is verified through the national portal, and the DCR certificate — the 16-digit traceability number — is the key verification mechanism. If the installed module cannot produce a valid 16-digit DCR certificate through the portal, the installation will fail the compliance check and the subsidy will not be disbursed. The client will hold the EPC responsible for this outcome. There is no retroactive remedy once the installation is complete with non compliant modules.

What is ALMM List II and how is it different from List I?

ALMM List I covers solar PV modules — the complete assembled panel product. It has been in effect since March 2021 and is a well established requirement that most EPCs are familiar with. ALMM List II covers solar PV cells — the individual semiconductor wafers that go inside the module. List II is newer, first published in July 2025, and has been revised five times since then. The June 2026 mandate adds List II compliance on top of existing List I requirements: projects must now use modules that are themselves on List I AND are made from cells whose manufacturer appears on List II. Both conditions must be met simultaneously.

How do I check if my module supplier is on ALMM List II?

The authoritative source is the MNRE ALMM portal. The current 5th revision of List II (dated February 13, 2026) is available there as a downloadable document. Because the list is updated frequently — five revisions in eight months — you should verify against the most recent revision at the time of procurement, not a version you may have saved previously. For module suppliers who are on List I but whose cell manufacturer may or may not be on List II, ask the supplier explicitly: which cell manufacturer do they source from, and is that manufacturer currently on ALMM List II? Request this confirmation in writing before placing any order for post June projects.

What is the 16-digit DCR certificate and where do I get it?

The 16-digit certificate is a unique traceability code assigned to each DCR compliant module batch through the national DCR Verification Portal operated by the National Institute of Solar Energy (NISE). The certificate confirms that the cells inside a specific batch of modules were manufactured by a registered domestic producer. The certificate is generated and provided by the module manufacturer — not the EPC. When you procure modules for a subsidy linked or net metered project, your supplier must provide this certificate number for each batch of modules supplied. You then submit this number as part of the net metering or subsidy application. If the supplier cannot provide the certificate, do not proceed with that module for any covered project.

Are thin film solar modules exempt from the DCR requirement?

Yes, with a specific condition. Thin film solar modules manufactured in India in integrated solar PV module manufacturing units are considered compliant with the ALMM List II cell requirement under the amended MNRE order. This exemption recognises that thin film technology (such as CdTe and CIGS) has a different cell structure than conventional crystalline silicon and cannot be assessed against the same cell origin criteria. However, the thin film module itself must still be manufactured in India in an integrated facility — thin film modules imported from overseas do not qualify for this exemption.

DCR panels cost more than Non-DCR. How do I handle the price difference with clients?

The price premium on DCR compliant modules has been narrowing as domestic cell capacity expands, but it remains real — IEEFA estimated DCR-compliant modules at around ₹23–26/W in late 2025, materially above imported non-DCR alternatives. For subsidy linked projects, the framing is straightforward: the client is receiving a subsidy of up to Rs 78,000 (PM Surya Ghar) or significant scheme support (PM KUSUM) that requires DCR compliance as a condition. The net cost to the client after subsidy is often lower with a DCR module than the upfront cost of a non DCR module without any subsidy. Build the comparison into your proposal explicitly — show the client the post subsidy cost with a compliant module versus the full cost of a cheaper non compliant option. The GST cut to 5% (effective September 22, 2025) has also reduced the total cost gap between DCR and non DCR projects by improving the economics of the compliant option.

Sources

• Ministry of New and Renewable Energy (MNRE) — mnre.gov.in/almm — ALMM List II for Solar PV Cells (5th revision, February 13, 2026)
• MNRE via PIB — pib.gov.in — ALMM Order amendment July 28, 2025 — June 1, 2026 date reaffirmed
• Saur Energy — saurenergy.com — "MNRE Eases ALMM Rules for Solar Cell Use, Retains June 2026 Mandate" (July 2025)
• Mercom India — mercomindia.com — "Unverified DCR Solar Modules Won't Be Accepted in Government Programs" — 16-digit certificate requirement
• IEEFA — ieefa.org — "Residential Rooftop Solar Grows Under PM Surya Ghar Yojana but Gaps Persist" — DCR vs non DCR cost comparison