Difference Between DCR and Non-DCR Solar Panels

The demand for solar energy has tremendously increased due to its numerous benefits and reduced carbon footprint. It has also saved a huge amount on utility bills and has helped society grow by supplying ample amounts of electricity to businesses as well as industries without the need to pay heavy bills and taxes.

The invention of solar panels, like DCR and non-DCR solar PV panels, has made the usage of environmentally friendly electricity more cost-effective and popular. 

This blog will discuss the difference between DCR and non-DCR solar panels in detail, which will help you decide which one to choose for your project requirements. 

What Do You Mean By Solar PV Panels?

Solar PV panels are also called solar photovoltaic panels. These are the devices that convert sunlight into electricity and are made up of a number of solar cells. These solar cells are typically made up of silicon.

Whenever sunlight strikes these cells, they generate electrons and create a flow of electricity. The electricity produced by Solar PV panels can be used to power different devices as well as appliances.

Electricity is stored in batteries that can be used later as per the requirement. Solar PV panels aid in generating cleaner and renewable energy that helps reduce dependence on fossil fuels as well as reduce carbon emissions. 

These panels are mostly used in commercial, residential, and utility applications to create electricity from the energy of the sun. 

A Detailed Introduction to DCR and Non-DCR Panels

Let us see the difference between the non-DCR and DCR panels in detail, which will help you in making appropriate decisions about choosing which PV panel will suit you best for your needs. 

What are DCR Solar Panels?

DCR solar modules, i.e., domestic content requirement solar panels, are basically photovoltaic modules made with the help of domestically manufactured solar cells as well as other necessary components. 

These solar panels are allowed in particular government projects as well as subsidy-driven schemes in order to promote the ‘Make in India’ campaign. It will apparently foster local manufacturing. 

The primary requirements for DCR panels encompass the following –

• Solar cells and modules should be manufactured on a domestic level, i.e. in India. 

• DCR panels are suitable for particular government projects, specifically those projects that fall under the PM KUSUM & CPSU schemes. 

What are Non-DCR Solar Panels?

Usually, non-DCR panels do not have any restrictions on where the components originate. These solar panels utilise imported solar cells, and on the other hand, the assembly of modules may or may not take place in India.

As the majority of solar cells are manufactured in Malaysia, Taiwan, and China, the non-DCR panels come with best-in-class technology as well as improved efficiency. 

The key requirements of Non-DCR solar panels involve – 

• There are no specific domestic manufacturing restrictions
• Highly developed and effective technologies are available 
• Reduced prices owing to the worldwide competition 

Component-Level Comparison – DCR vs. Non-DCR Solar Panels

When considering solar panels, look beyond price and efficiency to consider other factors. The source of the individual components has a major impact on the quality, performance, and value of your system.

Here is a quick, easy-to-understand explanation of DCR and non-DCR panels, as well as what sourcing a particular part means to the end customer.

Solar Cells

• DCR Panels – The panels use solar cells manufactured within India.
• Non-DCR Panels – These panels can include imported cells from countries such as China, Taiwan, or Malaysia.

What does this indicate?

Solar cells are the most important component of any panel as they convert sunlight into electricity. Indian-manufactured cells will help maintain quality, meet national standards and reduce import dependence.

Cells from outside India can provide a slight boost in efficiency for short periods, but they may also disrupt supply and alter costs as global trade conditions continue to evolve.

Glass

• DCR Panels: These panels are sourced from Indian manufacturers.
• Non-DCR Panels: These panels can be sourced from suppliers across the globe.

The glass guards the solar cells from outside elements and allows sunlight to flow into the cells efficiently. Indian glass manufacturers adhere to high standards of durability and provide sturdy solutions that are suitable for the Indian weather.

Special coatings as well as innovations, may be available from international sources. But, it is worth remembering that they often also incur additional shipping time and costs.

Frame

• DCR Panels: Aluminum frames are sourced from domestic suppliers.
• Non-DCR Panels: You may use frames from international manufacturers.

Why is it crucial to your system’s strength?

The frame offers structural integrity to the panel. The domestically sourced aluminium frames are economical to replace or service. Although international frames can provide some increase in corrosion resistance or appeal, they also can increase lead times and cost of supply.

• DCR Panels: Materials must be produced in India.
• Non-DCR Panels: They can include imported back sheets and EVA films.

Key takeaways –

These layers help to keep cells together and protect them over time. Indian EVA & Backsheets can now face local heat, humidity and UV for longer life. Not to mention other imported options that may give better resistance but cost a lot more and hardly give the desired output in the actual Indian environment. 

Junction Box & Connectors

• DCR Panels – Must use components that follow Indian DCR regulations.
• Non-DCR Panels – Have the flexibility to use international products.

Why is it important to note?

The junction box and connectors allow the flow of electricity from the panel to your system safely and securely. DCR-compliant parts are tested against Indian standards, guaranteeing the compatibility, quality and safety you expect. Although foreign parts may have special attributes, it may be more cumbersome and costly to replace or repair them.

How Does the Sourcing of Solar Panels Influence Performance and Value?

The three major factors that influence the performance and value of solar PV panels are – 

• Quality – DCR panels are specifically designed for Indian standards and climate and generally exhibit better real-world reliability.
• Cost – Although many panels that are non-DCR seem cheaper, they can turn out to be more expensive in the long run due to maintenance and logistical reasons.
• Availability – DCR-based supply chains are more stable and predictable in times of global shipping delays or import restrictions.

The choice to use DCR or non-DCR panels is not just about a technical one but a strategic one. It is mainly about finding the perfect balance of performance, support, and long-term value that aligns with your environment and priorities. 

A Quick Comparison at the Component Level 

Component	DCR Panels	Non-DCR Panels
Solar Cells	Made in India	Imported (e.g., China, Vietnam,Taiwan)
Glass	Sourced from Indian manufacturers	Globally sourced, may have advanced coatings
Frame	Domestic aluminium suppliers	International suppliers, longer lead times
Backsheet & EVA	Made in India, suited for local conditions	Imported, higher cost, not always suitable for local climate
Junction Box & Connectors	Must meet Indian DCR norms	Can use global options, harder to replace locally

Cost & Affordability Comparison of DCR & Non-DCR Solar PV Panels 

Now that we have considered the comparison as per the key components, let us look for the cost and affordability comparison, which are the most important factors. 

When comparing solar panels, one of the key differences you’ll notice is price. DCR modules will usually cost more than their non-DCR counterparts. But why is that and what does it ultimately mean in terms of long-term value?

Why do DCR panels cost more?

DCR products are produced with components procured and produced either inside India. This is good for local industry, but adds to costs with:

Higher local manufacturing costs

Labour, raw materials prices, and operational costs in India are generally higher than in some other solar manufacturing countries.

Raw material production capacity is very low, andthe  requirement is high.

Quality constraints in domestic material do not meet the standard as per export material Quality.

Economies of scale are limited

No Indian brand currently operates large-scale facilities like global manufacturers.

Why are non-DCR panels cheaper?

Non-DCR panels make procurements from the international markets where the manufacturers have mature production and high volumes. 

Mass production and global efficiencies – Countries like China and Vietnam have fully mature solar manufacturing hubs that produce at scale, thereby lowering costs.

Competitive price – Worldwide suppliers are aggressive in offering competitive prices, allowing buyers to receive a steady flow of panels at a favourable price.

Real-world cost gaps

Without any government subsidies, DCR panels can cost 10-20% more than non-DCR panels. However, the cost difference can be easily neutralised under government tenders or subsidy schemes such as PM-KUSUM or rooftop solar programmes. That requires DCR-based products, making such projects manageable for eligible units.

Initial vs. Long-Term ROI

Although non-DCR panels may have lower upfront costs, DCR panels are generally available with longer warranties, better alignment with Indian standards, and easier after-sales support. 

The lifecycle cost maintenance, replacement over the product’s life, or guaranteed service availability may make DCR panels a smarter investment, particularly for institutional projects or those backed by the government. 

If you are comparing both the solar PV panels purely on price, the non-DCR panels win. But if you value stability, compliance, and long-term value, then DCR may be the smarter choice.

Availability and Supply Chain – DCR vs. Non-DCR Panels

Let us now understand how sourcing affects agility, timeliness, and perfect project execution. 

Limited supply in DCR Panels

Whenever a solar project is planning to move fast, the availability of panels is quintessential. DCR panels must be made with components manufactured in India. 

This supports local businesses by increasing the current production capacity of India. It also clearly indicates that there can be delays whenever a lot of projects need solar PV panels at the same time.

Developers who are using DCR panels may confront issues like longer delivery times and fewer options for panel types. Moreover, they may face an increase in prices whenever the demand goes up. 

Quick delivery with non-DCR Panels 

Non-DCR panels can be largely imported from worldwide suppliers. These suppliers produce solar panels at a greater scale, which will allow them to keep extra stock ready to ship. 

It makes it easier for private companies to get the panels they require without waiting too long. There is also a lot of variety in panel models, along with better price flexibility. 

Delays & flexibility in projects 

Government projects that require DCR panels usually face delays not just because of poor planning, but because there is not enough stock available. 

However, private projects that prefer non-DCR panels move faster and complete the projects by purchasing these panels from global markets.

Picking the right option for your needs 

Suppose your project requires meeting the government standards or needs to get benefits from certain subsidies, then DCR panels are the perfect choice. If flexibility, speed, and choice are at the forefront of your needs, then non-DCR could be the best option. 

Down the line, selecting the right path depends on your deadlines or goals and the speed of project completion you expect.

Government Policies and Incentives

In India, government policies also largely dictate the kind of solar panels used, particularly in funded or subsidised projects. Many of the government tenders under the National Solar Mission require DCR solar PV panels, where Indian-manufactured components must be used.

ALMM (Approved List of Models and Manufacturers) is administered by the MNRE (Ministry of New and Renewable Energy). Only the panels listed here are allowed in government-backed projects, and most are DCR-certified.

Agencies like SECI issue tenders that clearly mention the specifications for panels. Panels that are not DCR are not allowed in government projects. However, they may be available or made available quickly.

For example, PM-KUSUM and government rooftop schemes are among the programmes that explicitly stipulate DCR panels. Private sector projects, such as factories, malls, or residential complexes, on the other hand, can use Non-DCR panels for greater flexibility.

Awareness of these rules will enable developers to plan projects more effectively and be eligible for tenders and subsidies without being hindered or having their projects rejected.

Conclusion

The DCR and non-DCR panels vary in terms of their sources, cost, availability, and the entitlement to government subsidies. However, the right decision will depend on your project’s budget, mandatory requirement, timeframe and compliance requirements.

When your desired outcomes and goals match closely with the chosen panels, better results can be accomplished. But, you should work with a solar professional to make informed decisions that maximize performance, policy compliance, and long-term value.

Explore our reliable selection of solar panels from Avaada Electro. No matter if you need DCR-compliant or flexible non-DCR solutions, our experts can help you find the best cost-effective option. Make the smart investment in fueling a sustainable, clean energy future with us.