The difference between DCR vs Non-DCR Solar Panels can affect your solar subsidy application approval. DCR and Non-DCR modules aren’t just fancy industry jargon, but affect the price and quality of solar panels for your project. Thus, understanding their difference is critical if you plan on switching to solar energy.
In this post, we will discuss the meaning of Non-DCR and DCR solar panels and some differentiating factors to help you make the final decision.
The DCR and Non-DCR differentiation is based on the origin of the components of solar panels. Let’s discuss this more.
What Is DCR Solar Panel?
DCR standards for Domestic Content Requirement. The DCR solar panel cells and modules must be developed by domestic manufacturers under the Make in India scheme. The government is encouraging the adoption of the DCR solar panels to encourage local manufacturing, job creation, and reduce dependence on foreign countries.
If you want to avail the benefits of PM Surya Ghar Muft Bijli Yojana and other MNRE (Ministry of New and Renewable Energy) programs, it is mandatory to use DCR solar panels. You must buy panels from the MNRE’s Approved List of Models and Manufacturers (ALMM).
What Is Non-DCR Solar Panel?
Non-DCR solar panels don’t meet the DCR parameters as they are imported from other countries: either the entire panel or its components for local assembly. These solar panels are not eligible for the rooftop solar subsidy as they aren’t domestically developed.
Non-DCR solar panels are widely available in the India market due to their lower prices and efficiency. They are affordable because the components are often imported from countries like China, Vietnam, or Malaysia. You cannot get government incentives with Non-DCR solar panels.
DCR Vs Non-DCR Solar Panels: What’s The Difference?
Let’s understand the difference between DCR vs Non DCR modules with a side-by-side comparison. We have listed a few differentiating factors to help you get a better understanding to make your buying decision for solar panels.
| DCR Solar Panels | Non-DCR Solar Panels | |
|---|---|---|
| Manufacturing Origin | Solar cells and modules developed wholly in India by the domestic solar panel manufacturer | Some components or entire solar panels are imported from foreign countries |
| Eligibility for government subsidy | Eligible for all government subsidy and incentives program | Might not be eligible for the government subsidy program |
| Quality assurance | These solar panels need to meet the local quality standards, especially if they want to get listed in the MNRE’s ALMM | The quality depends on the manufacturer. Choose a brand that offers high-quality assurance |
| Price | The price is on the higher end due to the cost of machinery and raw material used in locally developing solar cells and modules | The price is often on the affordable side due to imports at lower cost from other countries like China, Vietnam, Taiwan, and Malaysia |
| Solar installation cost | Lower solar installation cost due to subsidies and other government incentives, such as net metering | Higher upfront installation cost as they are not eligible for the government subsidy. However, they can apply for net metering to save money on electricity bills. |
| Best For | Homeowners or roof-top solar projects that can be eligible for government incentives | Suitable for commercial, industrial, and off-grid projects where subsidies aren’t a priority |
DCR Vs Non DCR Modules: Which One Should You Choose?
If you are still confused between DCR vs Non-DCR Solar Panels for your home, here are a few questions that can help you make the final decision.
Do you want to apply for a government subsidy?
If you want to avail the government subsidy and other benefits, you must choose DCR solar panels. They are highly encouraged by the state and central government to increase energy independence and create more jobs for the locals in that area.
Is budget your primary concern for solar installation?
Solar installation is expensive, especially if you aren’t eligible for the subsidy. For residential solar projects, DCR modules will be better suited to get government subsidies. However, for industrial and commercial projects (not eligible for many government subsidies), non-DCR panels are better as they are cost-effective and efficient.
Is your project large-scale or for the home?
The size of your projects matters a lot. Small-scale projects benefit more from DCR panels. However, for large-scale projects, it might be more beneficial to use Non-DCR modules because of their lower price and higher efficiency.
Do you want to support the local manufacturers?
If you want to support the local manufacturers, you should choose DCR solar panels. It also helps you build your brand image and makes you eligible for various government programs.
If you want to find the best solar panels for your projects, contact us now!
Conclusion
When buying solar panels, customers are bombarded with various industry jargon. One of the most important ones is DCR and Non-DCR Solar panels. Understanding the difference between DCR vs Non-DCR Solar Panels is critical if you want to apply for a government-linked subsidy. DCR stands for Domestic Content Requirement, where the solar cells and modules of the panel are Made In India. However, Non-DCR modules import these two elements. Non-DCR panels are affordable, while DCR helps you access government-backed financial aid.
FAQ
Which is better: DCR or Non-DCR solar panels?
Both DCR and Non-DCR solar panels have their benefits and drawbacks. A few factors that affect your choice are the upfront cost of installation, eligibility for the government subsidy, and the efficiency needs. If you want to avail of government benefits, you must choose DCR solar panels only. However, if you can’t avail the subsidy and have large-scale projects, Non-DCR solar panels might be more effective.
Can I get a government subsidy if I install Non-DCR solar panels?
No, because most government subsidies, including PM Surya Ghar Muft Bijli Yojana and other MNRE programs, make it mandatory to use DCR solar panels from MNRE’s Approved List of Models and Manufacturers (ALMM).
How to choose the best solar panel for the home?
When choosing a solar panel for your home, focus on:
- Your electricity needs
- Finding a trusted solar panel manufacturer
- DCR solar panels, if you want to apply for a government subsidy
- Strong performance and efficiency
- Post installation support
- Reputation of the manufacturer
- Transparent pricing and communication
What is the cost of DCR panels vs non-DCR panels?
DCR solar panels can be marginally higher in upfront cost compared to some imported Non-DCR options. However, when you get government subsidies, DCR panels often turn out to be significantly more cost-effective over the project lifetime. However, if you aren’t eligible for the subsidy, the Non-DCR can be a better option.
