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DCR vs Non-DCR Solar Panels and ALMM: What the Subsidy Requires

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Published by Uday Patel, SunFit Solar · How our guides are made

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If you want the PM Surya Ghar subsidy, your solar panels must be DCR panels, meaning both the solar cells and the module are made in India, and their DCR details must be verifiable on the government's DCR portal. Non-DCR panels (Indian-assembled modules with imported cells, or fully imported modules) do not qualify for the subsidy. Separately, ALMM is the government's approved list of panel models and manufacturers, and from 2027 it will matter for every net-metered rooftop system too.

Three terms, in plain words

ALMM stands for Approved List of Models and Manufacturers. It comes from an order issued by the Ministry of New and Renewable Energy (MNRE) in 2019. It has two parts:

  • List-I covers solar PV modules (the panels).
  • List-II covers solar PV cells (the small units inside a panel that turn light into electricity).

Both lists are updated regularly. You can see every revision on MNRE's ALMM page. List-II alone had been revised twelve times by 8 October 2026.

DCR means Domestic Content Requirement. A DCR panel uses solar cells made in India and is assembled into a module in India. MNRE's rooftop solar FAQ, published by PIB, puts the subsidy rule simply: "For availing CFA, the PV module and cell shall be manufactured in India only" (source). CFA is central financial assistance, which is the subsidy.

Non-DCR is everything else. Most commonly, a panel assembled in India using imported cells. It may be a perfectly good panel, but it does not meet the domestic content rule.

DCR vs non-DCR at a glance

DCR panel Non-DCR panel
Solar cells Made in India Usually imported
Module assembly In India In India or abroad
PM Surya Ghar subsidy Eligible (if other conditions are met) Not eligible
Verified on NISE DCR portal Yes, required for the subsidy Not applicable

Why the subsidy insists on DCR

The rule is there to support solar manufacturing in India. MNRE schemes that give public money, namely PM Surya Ghar: Muft Bijli Yojana, PM-KUSUM and the CPSU Scheme Phase-II, all carry the DCR condition.

For you as a homeowner, the practical point is this: if the installer fits non-DCR panels, the subsidy claim will not go through. You will have paid for the system and lost a subsidy worth up to ₹78,000. See our PM Surya Ghar subsidy page for how the amounts and process work.

The DCR verification portal

Writing "DCR" on a panel sticker is not enough. The National Institute of Solar Energy (NISE) runs a DCR verification portal where manufacturers record the cells and modules they make.

According to an MNRE office memorandum dated 11 November 2024, from 1 December 2024 any solar module whose DCR credentials cannot be verified through this portal is not accepted under PM Surya Ghar, PM-KUSUM or the CPSU Scheme Phase-II. MNRE also warned that manufacturers whose modules fail DCR verification may face action.

What this means for you: the serial numbers of the panels actually fixed on your roof need to match genuine DCR records. A mismatch can hold up or block your subsidy.

ALMM List-II and the 2026 changes

Here is where things have been moving fast this year.

MNRE first said, in December 2024, that net-metering and open access projects commissioned on or after 1 June 2026 must use modules from ALMM List-I made with cells from ALMM List-II. That deadline then went through several clarifications.

The main change came in MNRE's office memorandum dated 18 July 2026. It says there is no blanket extension, but it gives a limited window: net-metering and open access projects can be commissioned with an exemption from ALMM List-II until 31 December 2026. Net-metering projects commissioned after that date must comply with List-II. A further memorandum dated 4 August 2026 confirmed this window and said no application on the NISE portal is needed to use it.

In plain terms:

  • For subsidy homes, nothing changes about the basic rule. You need DCR panels, verified on the NISE portal.
  • For anyone skipping the subsidy, a net-metered system commissioned from 1 January 2027 still needs ALMM List-I modules using List-II cells, so the old option of simply fitting any imported-cell panel is narrowing.
  • One exception for homes. The same 4 August memorandum says homes that apply through the PM Surya Ghar national portal but choose the "Give It Up" subsidy option are exempt from List-II until 31 March 2027. List-I modules are still required.
  • Rules may change again. MNRE issued several memos on this between May and August 2026. Ask your installer to confirm the position on the date your system will be commissioned, not the date you sign.

What to check before you sign

Whether you go for the subsidy or not, ask for these in writing:

  1. The exact panel make and model, not just "Indian brand" or "DCR panel".
  2. Confirmation that the model is on ALMM List-I. You can check the latest list on MNRE's ALMM page.
  3. For subsidy homes, that the panels are DCR and will be verifiable on the NISE portal. Ask how they handle the DCR certificate for your panels.
  4. That the panels delivered match the quote. When the panels arrive, check the labels and serial numbers against the invoice.
  5. That the vendor is registered on the PM Surya Ghar portal if you are applying for the subsidy.
  6. Warranty papers for the panels and inverter, kept safely with your other documents.

A good installer will answer all of this without fuss. If someone avoids naming the panel model or says "it's all the same", that is a warning sign. Our guide on how to choose a solar installer in Gujarat covers more questions to ask, and our post on what size system your home needs helps you work out how many panels you are buying in the first place.

Next step

Before you collect quotes, decide whether you are applying for the PM Surya Ghar subsidy. If yes, tell every installer up front that you need DCR panels verifiable on the NISE portal and ask each one to name the exact model. That one question makes quotes easier to compare and filters out anyone who is vague. If you want, we can connect you with one checked installer near you.

This guide is general information, not advice. Scheme rules and amounts change, so check the official portal or your DISCOM before you decide.

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