Strengthening Atmanirbhar Bharat: Mandatory Domestic Solar Cell Use for Net-Metering Projects

In a significant move to bolster the domestic renewable energy industry, the Union Government has announced that effective June 1, 2026, all new solar projects under net-metering and open access must utilize domestically manufactured solar cells. This mandate extends to flagship schemes like the PM Surya Ghar: Muft Bijli Yojana, marking a transition from the current requirement which primarily focused on domestic solar modules rather than the cells themselves.

Historically, India has been heavily reliant on imports for solar cells, with China accounting for a lion's share of the supply chain. While India has made strides in solar module assembly, the underlying cell manufacturing remained a bottleneck. By mandating domestic cells, the government aims to deepen the value chain, encouraging upstream investments in ingots, wafers, and cells. This aligns with the broader 'Atmanirbhar Bharat' (Self-Reliant India) initiative and the Production Linked Incentive (PLI) scheme for High-Efficiency Solar PV Modules.

From a policy perspective, this decision addresses two critical areas: energy security and trade deficit. Reducing dependence on a single geographical source for critical green energy components is vital for India’s long-term energy sovereignty. Furthermore, it supports India’s ambitious target of achieving 500 GW of non-fossil fuel capacity by 2030. However, the transition poses challenges, including the need for domestic manufacturers to scale up rapidly to meet demand without significantly escalating project costs for consumers.

For the PM Surya Ghar: Muft Bijli Yojana, which aims to provide free electricity to one crore households through rooftop solar, this mandate ensures that the subsidies provided by the taxpayer directly support the local economy and industrial growth. It creates a guaranteed market for domestic manufacturers, providing the necessary demand certainty to justify large-scale capital expenditures.