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					</table>Accounting for <a href="https://www.mercomindia.com/indias-rooftop-solar-installations-surge-by-125-yoy-in-q1-2026" target="_blank" rel="noopener">18%</a> of India’s total solar installations in Q1 2026, the rooftop solar segment has been a key growth driver in the country&#8217;s efforts to fast-track its clean energy transition. Spurred by ambitious government initiatives like the PM Surya Ghar: Muft Bijli Yojana, rooftop installations have helped India expand solar adoption at the consumer level.
However, even as project volumes and demand continue to grow, the rooftop solar segment is grappling with persistent shortages due to the limited availability of domestic content requirement (DCR) compliant TOPCon modules.
Installers across several states said the shortage has extended procurement timelines, raised module prices, tied up working capital, and reduced monthly installation volumes. Residential projects under the PM Surya Ghar program have been particularly affected because consumers claiming subsidies must use domestically manufactured cells and modules.
The principal bottleneck lies in the availability of domestic solar cells rather than in module assembly capacity. While India’s module manufacturing has expanded rapidly, its domestic cell production has not grown at the same pace. Consequently, module manufacturers depend on a limited pool of domestic cells to produce DCR-compliant modules.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/In-operation-modules-and-cells-by-technology.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-102216 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/In-operation-modules-and-cells-by-technology.png" alt="In operation modules and cells by technology" width="652" height="350" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/In-operation-modules-and-cells-by-technology.png 652w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/In-operation-modules-and-cells-by-technology-300x161.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/In-operation-modules-and-cells-by-technology-650x350.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/In-operation-modules-and-cells-by-technology-624x335.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/07/In-operation-modules-and-cells-by-technology-600x322.png 600w" sizes="auto, (max-width: 652px) 100vw, 652px" /></a>
Customers and installers prefer TOPCon technology because it provides higher power output and efficiency within limited roof space. Domestic TOPCon cell supply, however, remains inadequate to meet demand from residential rooftop, commercial and industrial (C&amp;I), government, PM-KUSUM, open access, and utility-scale projects.
In a June report, Mercom India <a href="https://www.mercomindia.com/domestic-solar-cell-supply-under-strain-as-demand-for-topcon-modules-surges" target="_blank" rel="noopener">highlighted</a> how the mismatch between growing TOPCon demand and available domestic cell capacity was creating supply constraints.
The Root of the Shortage
The implementation of the Approved List of Models and Manufacturers (ALMM) II mandate has restricted procurement to manufacturers holding approved domestic cells inventory. Multiple project categories are now competing for the same pool of DCR-compliant cells.
It takes longer to develop and stabilize a solar cell plant than to establish module assembly units. Cell manufacturing involves specialized equipment, gases, chemicals, skilled personnel, quality controls, and production optimization. Even a commissioned plant requires time to achieve stable yields and commercially viable output.
Manufacturers participating in the Mercom India Renewables Summit 2026 <a href="https://www.mercomindia.com/manufacturers-expect-solar-cell-crunch-to-not-last-beyond-a-year" target="_blank" rel="noopener">said</a> additional cell capacity would gradually reduce the shortage, although the supply imbalance could persist until new facilities achieve consistent commercial-scale production.
Demand from government-supported programs is adding to the supply pressure. PM Surya Ghar, PM-KUSUM, public sector procurements, and other projects subject to domestic sourcing requirements are drawing from the same pool of cells and modules as other project categories.
The increasing cost and limited supply of DCR-compliant solar modules are also <a href="https://www.mercomindia.com/rising-costs-supply-shortages-dcr-modules" target="_blank" rel="noopener">threatening</a> the progress of these programs.
Policy Uncertainty Hampers Projects
Engineering, procurement and construction (EPC) companies were among the first stakeholders to feel the supply squeeze in the year’s first quarter as uncertainty over cell sourcing requirements began to disrupt project timelines.
Naveen Rajashekar, Chief Executive Officer at <a href="https://beestonesolar.in/" target="_blank" rel="noopener">BeeStone Solar</a>, said the company was unable to execute several C&amp;I rooftop projects due to a shortage and confusion about the sourcing deadline.
“Since the first quarter, we did almost no business. Our business was nearly 70% down,” he said.
Rajashekar said the industry had expected developers to have more time to comply with the mandate for projects already in the pipeline. It was only after the Ministry of New and Renewable Energy issued a clarification extending the exemption for eligible net metering and open access projects commissioned on or before December 31, 2026, that the market conditions eased somewhat.
However, existing inventory must still move through distributors and transport networks before supplies normalize. Rajashekar expects the process to take another 15 to 30 days.
Thulaseedas TN, CEO of <a href="https://www.tharayilpower.com/" target="_blank" rel="noopener">Tharayil Power Solar</a>, said DCR module availability in Kerala remains severely constrained, and installers are struggling to secure sufficient quantities from manufacturers. The shortage is forcing the market to consider tier-2 and tier-3 brands, despite concerns about their ability to consistently supply preferred technologies and provide after-sales support.
“Mono PERC bifacial modules are relatively easier to obtain, but most customers now prefer TOPCon modules, which creates a mismatch between the available supply and customer preferences,” Thulaseedas said.
Residential Rooftop Projects Struggle
Rooftop installers said residential EPC companies have been left in a lurch as manufacturers and distributors prioritize larger orders.
Terance Alex, Founder and CEO at <a href="https://www.wattsun.in/" target="_blank" rel="noopener">WattSun Energy</a>, said, “Earlier, distributors could supply full container loads every week. Today, that has come down to barely two or three pallets.”
Module deliveries can now take up to 45 days, whereas a typical rooftop installation takes around 30 days to complete. The result is delayed supplies, incomplete projects, and tied-up working capital which could otherwise be deployed for equipment, labor, and customer acquisition.
Alex estimated that installers may earn ₹20,000 (~$207) to ₹30,000 (~$310) per regular 3 kW residential rooftop project. Delays of more than a month place unnecessary pressure on smaller businesses that depend on quick project turnarounds.
Limited availability of cells and modules has also forced installers to turn to Tier 2 and Tier 3 suppliers. This shift has raised concerns about product quality, brand representation, and the availability of preferred technologies, he added
Installation Volumes Decline
A Telangana-based rooftop installer said their monthly installation volume had fallen from around 150 systems under normal supply conditions to approximately 50-60 systems due to the shortage.
“The demand never reduced. We simply could not procure enough DCR modules,” the installer said.
Large projects procuring high-wattage TOPCon modules in bulk have further reduced availability for residential systems.
A Bihar-based rooftop installer said delivery timelines for cells and modules had increased from 7 to 10 days to 15 to 20 days.
In Chhattisgarh, suppliers are quoting module prices based on available inventory rather than maintaining a consistent market benchmark. The resulting volatility has made it difficult for installers to hold quotations, lock in project costs, or provide customers with firm delivery schedules.
Installers across Telangana, Bihar, Chhattisgarh, and Kerala said customer inquiries for residential projects remain strong, driven by rising electricity costs and subsidies under the PM Surya Ghar program.
Constraints Extend Beyond Modules
The supply disruption has also affected the availability of inverters, electrical accessories, and other equipment used in rooftop installations.
A Kerala-based residential rooftop installer said customers continue to request TOPCon modules even when mono PERC products are readily available.
Alex also said equipment such as 5 kW single-phase inverters, DC fuses, and other electrical components are also facing supply shortages. He said the price of DC fuses had increased from about ₹75 (~$0.777) to ₹158 (~$1.637), while rising copper prices were adding to overall system costs.
According to Tinsu Mathew, Managing Director of <a href="https://elsol.co.in/" target="_blank" rel="noopener">El Sol Power Solutions</a>, the limited availability of 5 kW single-phase inverters was due to strong demand and constraints in the supply of imported components.
Vulnerable Inverter Supply
BeeStone Solar said the country’s inverter segment remains highly dependent on Chinese imports, leaving supply chains vulnerable to shipping and customs clearance delays.
“Nearly 70% to 80% of the inverters used in India can be traced to Chinese imports,” Rajashekar said.
Some domestic brands import components, assemble equipment in India, and market the finished products under local labels. Rajashekar said building greater resilience would require domestic manufacturing across the entire value chain, from raw materials and electronic components to finished inverters and solar cells.
Prices Spike
Installers reported substantial differences between DCR and non-DCR module prices.
Mathew said Mono PERC DCR modules were priced at about ₹23.5 (~$0.243)/W plus taxes, while TOPCon DCR modules cost approximately ₹25.5 (~$0.264)/W plus taxes. The corresponding non-DCR prices were about ₹15.25 (~$0.158)/W and ₹15.5 (~$0.160)/W.
The price gap limits the competitiveness of subsidy-linked installations and increases the amount installers must finance while awaiting project completion.
The Bihar-based installer reported TOPCon DCR prices ranging from ₹24 (~$0.248)/W to ₹30 (~$0.310)/W. Tier 2 manufacturers were offering modules at approximately ₹24 (~$0.248)/W to ₹25 (~$0.259)/W, although customers often continued to request products from established brands.
The Chhattisgarh-based installer reported TOPCon DCR prices of around ₹28 (~$0.290)/W to ₹29 (~$0.3)/W. The installer said prices changed according to available stock, preventing companies from issuing quotations with extended validity.
The high prices impact C&amp;I consumers more because they evaluate rooftop projects based on how much money they save and the payback period. Demand from the residential rooftop segment has remained resilient because subsidies under the PM Surya Ghar program reduce upfront costs.
Delays Strain Customers and Working Capital
The shortage has changed the operational focus of rooftop installation companies. Installers are spending more time managing delivery expectations, revising schedules, and responding to customers whose projects remain incomplete.
Companies typically receive advances, procure mounting structures and electrical equipment, and assign installation teams before modules arrive. Delayed timelines tie up capital in unfinished projects and delay final customer payments.
Smaller installers are among those hit hardest because they operate with limited inventory and cannot secure long-term supply contracts. Large developers can commit to bulk purchases and reserve manufacturing capacity, while residential EPC companies often purchase only enough material to fulfill current orders.
Wattsun Energy said the combination of low project margins and long waiting periods was making the residential rooftop business increasingly difficult for smaller companies.
Demand Continues to Rise
While residential consumers continue to consider rooftop solar systems due to lower electricity bills and central financial assistance, the key challenge is ensuring regular access to compliant modules and appropriately sized inverters.
Behind-the-meter installations and non-DCR modules provide alternatives for some consumers, but their adoption remains limited.
Battery storage could increase electricity self-consumption, but installers in Kerala and Bihar said high upfront costs could limit its deployment.
Supply to Improve Gradually
Manufacturers expect additional domestic cell capacity to ease supply constraints. The pace of improvement will depend on how quickly new production lines achieve stable yields and whether their output matches the market demand for TOPCon formats and wattages.
The exemption for eligible net metering and open access projects commissioned on or before December 31, 2026, should reduce the immediate demand for List II-compliant cells in those categories. The materials already ordered or held within distribution networks will still require time to reach installers.
New domestic manufacturing capacity should reduce the gap between module assembly and cell production. Until then, rooftop project schedules will continue to depend on the availability of DCR-compliant TOPCon modules, residential inverters, and other critical electrical components.

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