The rising cost of domestically manufactured solar panels is undermining the benefits of the 60% subsidy (30% each by Centre and states) offered to farmers under schemes like PM Kusum and Surya Ghar Yojana.

With DCR (Domestic Content Requirement) panels priced at ₹228 per watt—far higher than ₹14 for imported-cell-based panels—the effective subsidy value is significantly reduced. Farmers claim that a 5-kW solar plant, once costing ₹2.7 lakh, now exceeds ₹14 lakh, nullifying financial support and delaying implementation. DCR compliance is mandatory for subsidy eligibility, yet India lacks sufficient solar cell manufacturing capacity, creating supply shortages and inflated prices. Vendors argue that MNRE's insistence on DCR without matching domestic capacity benefits only a few manufacturers and hampers timely project completion. The shortage of DCR modules is also threatening MNRE’s solar targets. Some stakeholders are demanding policy revisions to allow broader use of affordable, imported-cell panels for smoother execution.