The Ministry of New and Renewable Energy (MNRE) has clarified that residential consumers who voluntarily forgo the Central Financial Assistance (CFA) under the PM Surya Ghar Muft Bijli Yojana can install rooftop solar systems using non-DCR (Domestic Content Requirement) solar modules.
The relaxation applies only to applicants selecting the “Give It Up” option while registering under the scheme.
What Has Changed?
Under existing rules, subsidy beneficiaries are generally required to use solar modules and components that comply with domestic sourcing requirements.
However, consumers who choose not to avail the subsidy can now install:
Non-DCR solar modules
Modules not covered under ALMM List-II requirements
This provides greater flexibility in equipment selection and may help reduce project costs for some consumers.
Exemption Valid Until March 2027
The exemption will remain effective until:
📅 31 March 2027
This aligns with the current implementation period of the PM Surya Ghar scheme.
Provision Status
Non-DCR Modules Allowed Yes
Subsidy Eligibility No (Give It Up option)
ALMM List-II Requirement Exempted
Exemption Valid Till 31 March 2027
Application Process
Eligible consumers must:
Register through the official PM Surya Ghar National Portal.
Select the “Give It Up” option while applying.
Proceed with rooftop solar installation and net-metering approval.
The ministry has clarified that no separate approval is required through the Domestic Content Requirement portal operated by the National Institute of Solar Energy.
What Remains Unchanged?
The relaxation is limited to residential consumers opting out of subsidies.
The following projects must continue complying with existing ALMM and DCR requirements:
Subsidy-supported PM Surya Ghar installations
Commercial rooftop solar projects
Industrial rooftop solar systems
Government-backed solar installations
Other categories covered under prevailing MNRE regulations
Why This Matters
The move could:
Increase rooftop solar adoption among consumers not seeking subsidies.
Offer access to a wider range of solar modules.
Potentially reduce installation costs through greater supplier choice.
Simplify the approval process by eliminating additional exemption applications.
At the same time, the government continues to maintain domestic manufacturing requirements for subsidised and other eligible solar projects.
Impact on Solar Industry
The clarification may benefit:
Residential rooftop solar installers
EPC companies
Consumers seeking faster project execution
Import-dependent module suppliers
Meanwhile, domestic solar manufacturers covered under the ALMM framework may continue to benefit from demand generated by subsidy-linked installations.
Conclusion
Under the PM Surya Ghar scheme, residential consumers who voluntarily forgo government subsidy benefits can install rooftop solar systems using non-DCR solar modules and are exempt from ALMM List-II requirements until 31 March 2027. The relaxation applies only to the “Give It Up” category, while all other rooftop solar projects must continue following existing domestic sourcing regulations.
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