Quick Facts
What DCR is
DCR (Domestic Content Requirement) is a procurement provision in certain Indian solar schemes that requires the use of solar cells and modules manufactured in India. The provision aims to support domestic solar manufacturing while implementing the central or state scheme. It is one of several policy tools used by the Government of India to develop Indian solar manufacturing capability alongside the Production Linked Incentive (PLI) scheme and basic customs duty.
DCR originated in the early years of the National Solar Mission, applied broadly to many central solar tenders. After WTO challenges, the broad DCR provisions were rolled back. Current DCR provisions are designed to comply with WTO obligations while still supporting domestic manufacturing in specific government-led applications.
For a project to be DCR-compliant, both the solar cells and the solar modules must be manufactured in India. Imported cells assembled into modules in India do not qualify. The specific certification process involves verification of cell manufacturing location, module manufacturing location, and supporting documentation.
Where DCR applies
DCR provisions are typically found in:
CPSU (Central Public Sector Undertaking) solar projects: Projects run by NTPC, NHPC, NLCIL, and similar PSUs often include DCR clauses.
Specific SECI tenders: Some SECI tenders include DCR provisions, particularly for projects with government end-use.
Parts of the central Grid-Connected Rooftop Solar Programme: Specific sub-components have DCR requirements.
Certain state DISCOM tenders: A few state tenders include DCR clauses for state-specific reasons.
Defence and strategic installations: Solar projects for defence applications often include DCR.
The applicability is project-specific. DCR is not a universal requirement across all Indian solar.
What qualifies as DCR-compliant
The specific test usually requires:
The solar cells used in the module are manufactured in India by an Indian-recognised manufacturer.
The module assembly (laminating cells, encapsulation, framing) is done in India.
The manufacturer holds appropriate BIS certifications.
The manufacturer has appropriate documentation establishing the Indian content.
Some schemes specify additional criteria such as minimum percentage of Indian content in raw materials or sub-components.
The PLI scheme has accelerated Indian solar cell manufacturing, expanding the universe of DCR-eligible products. By 2026, several Indian manufacturers have integrated cell and module production at scale, making DCR compliance feasible for more buyers.
DCR pricing and availability
DCR modules historically commanded a price premium because Indian cell manufacturing was less developed than Chinese mass production. The premium has narrowed over time:
2018 to 2020: DCR premium of 20% to 30% per Wp.
2021 to 2023: Premium of 12% to 20%.
2024 to 2026: Premium of 8% to 15%.
The PLI scheme and broader Indian manufacturing scale-up have steadily compressed the gap. For 2026, the price difference is no longer a major deterrent for projects with DCR requirements.
Availability of DCR-compliant products has also expanded. By 2026, most major Indian solar manufacturers offer DCR products across Mono PERC, TOPCon, and increasingly HJT technologies.
DCR versus ALMM versus PLI
These three policy mechanisms are related but distinct.
ALMM: List of approved manufacturers and models eligible for government-subsidised projects. Broad eligibility framework.
DCR: Specific procurement requirement in particular schemes that the modules be Indian-cell and Indian-module manufactured.
PLI (Production Linked Incentive): Subsidy paid to manufacturers based on production volume of high-efficiency modules. Supports manufacturing capacity expansion.
A specific product can be ALMM-listed, DCR-compliant, and from a PLI-participating manufacturer simultaneously. ALMM is broader than DCR. The PLI scheme aims to make DCR compliance economically attractive without requiring it everywhere.
WTO context
In 2016, the WTO Dispute Settlement Body ruled in favour of the United States in a case challenging India’s earlier broad DCR provisions under the National Solar Mission. The ruling held that the DCR provisions violated WTO obligations on national treatment and quantitative restrictions on imports.
India implemented the WTO ruling by limiting DCR to specific government procurement (which is permitted under WTO rules through government procurement exceptions). Modern Indian DCR provisions are designed to comply with WTO obligations.
The combination of limited DCR, basic customs duty on solar imports (currently 40% for modules), and the PLI scheme has supported significant Indian solar manufacturing capacity addition between 2021 and 2026 without further WTO challenges.
Common mistakes regarding DCR
Treating ALMM and DCR as the same thing. Not all ALMM products are DCR-compliant.
Forgetting to check DCR status when bidding into a CPSU or SECI tender with DCR provisions.
Assuming DCR modules are inferior. Quality is the same; sourcing is different.
Not budgeting for DCR price premium in financial models for DCR-mandated projects.
Mixing DCR and non-DCR modules in a project required to be 100% DCR.
Best practices
For DCR-mandated projects, verify DCR certification in writing at procurement.
Document cell and module manufacturing locations clearly in procurement contracts.
For non-mandated projects, evaluate DCR cost premium against non-DCR alternatives based on tender economics, not patriotic preference.
Stay current with MNRE notifications on DCR provisions and the PLI scheme.
Engage with Indian manufacturers early in project planning when DCR compliance is required.
Standards and references
DCR provisions are issued through MNRE notifications and specific tender documents. Compliance is verified through BIS certifications, manufacturer declarations, and (where required) MNRE or third-party audits. The PLI scheme operates alongside DCR through separate guidelines. The WTO ruling from 2016 (DS456) sets the international boundary conditions for Indian DCR.
Related glossary terms
Key takeaways
DCR (Domestic Content Requirement) is a procurement provision in specific Indian solar schemes requiring the use of Indian-manufactured solar cells and modules. DCR applies to certain CPSU projects, SECI tenders, and parts of central programmes, not as a universal requirement. The price premium for DCR modules has compressed to 8% to 15% in 2026 as Indian manufacturing has scaled. DCR works alongside ALMM (broader eligibility list) and the PLI scheme (production-based subsidy) to support domestic solar manufacturing within WTO-compliant boundaries.