MNRE has clarified that residential rooftop solar consumers under the PM Surya Ghar scheme who choose net metering through the Give It Up option will be exempt from the Approved List of Models and Manufacturers List-II requirement for photovoltaic cells until 31 March 2027. In an office memorandum the ministry said beneficiaries in this category will not need a separate exemption entry on the National Institute of Solar Energy digital clearance and registration portal. The ministry noted that the central subsidy equals Rs 78,000 on a three kilowatt (kW) system and applications must be submitted through the PM Surya Ghar portal.

The exemption is limited to residential rooftop projects under the PM Surya Ghar programme and all other rooftop installations will remain subject to existing ALMM regulations. The memorandum, approved by the secretary, has been circulated to state energy departments, distribution companies and renewable energy agencies. The ministry said the measure is intended to widen participation by allowing households that decline central financial assistance to proceed without the ALMM List-II requirement for projects commissioned up to 31 March 2027.

Industry participants have flagged a shortage of DCR-compliant modules and the clarification is expected to give vendors more sourcing flexibility. Vendors may promote non-DCR modules which are generally cheaper and easier to obtain, but persuading consumers to forgo the central subsidy of Rs 78,000 and state subsidies of up to Rs 30,000 will be difficult. There is a risk that some vendors may encourage non-subsidised systems by citing shortages or quicker installation, which could lead to consumer confusion.

Most middle-class households value the subsidy and broad uptake of the Give It Up option is likely to be limited. Rooftop system prices are rising, with some vendors quoting up to Rs 0.3 million (mn) for a three kW system while most installers quote in the Rs 0.18 mn to Rs 0.23 mn range. With DCR module costs almost twice those of non-DCR modules procurement costs for compliant systems may increase and add further upward pressure on retail prices.