- Budget 2025-26 cut Basic Customs Duty (BCD) on modules from 40% to 20% and on cells from 25% to 20%, and added an Agriculture Infrastructure and Development Cess (AIDC)
- With AIDC, the combined duty on imported modules stays around 40% and on cells around 27.5%, so domestic equipment keeps its edge
- Budget 2026-27 removed duty on an input for solar glass and let certain wafer-input exemptions lapse from 1 April 2026
- Anti-dumping duty on Chinese-origin cells and modules has been recommended; check the current notification before you import
- Together with ALMM, the duty structure means most C&I and scheme projects now use Indian-made modules
Why import duty matters for a solar plant
Modules are the single biggest equipment cost in a solar plant, and much of the world's module and cell supply is made in China. India uses customs duty, together with the ALMM lists and production-linked incentives, to make Indian manufacturing competitive. For a buyer, duty decides whether an imported module is cheaper than an Indian one once it lands, and therefore what your plant costs.
The rates after Budget 2025-26
The Union Budget presented on 1 February 2025 reorganised the duty on solar cells and modules. The headline BCD rate came down, but a cess was added so that the total protection stayed broadly the same.
| Item | BCD before | BCD after | AIDC added | Combined, approximately |
|---|---|---|---|---|
| Solar PV modules | 40% | 20% | 20% | About 40% (plus social welfare surcharge where applicable) |
| Solar PV cells | 25% | 20% | 7.5% | About 27.5% |
What Budget 2026-27 changed
The Budget presented on 1 February 2026 did not change the headline rates on modules and cells. It focused on the supply chain:
- It removed the basic customs duty on sodium antimonate, an input used to make solar glass in India.
- Commentary on the Budget notes that BCD exemptions on silicon for un-diffused wafers and related inputs were allowed to lapse from 1 April 2026, as India builds its own wafer capacity.
- It extended relief on equipment for lithium-ion battery cell manufacturing and critical-mineral processing, which matters for storage.
Anti-dumping and other trade remedies
Beyond customs duty, India can impose anti-dumping duty when imports are sold below fair value. In September 2025 the Directorate General of Trade Remedies (DGTR) recommended anti-dumping duties on solar cells and modules of Chinese origin. Whether, when and at what rates they apply depends on the Finance Ministry's notification, so check the current status before you place an import order.
What this means for buyers
| Project type | Domestic (ALMM / DCR) modules required? | Practical choice |
|---|---|---|
| PM Surya Ghar, PM-KUSUM | Yes, DCR | Indian modules with Indian cells |
| Government and DISCOM-linked projects | Yes, ALMM List-I with List-II cells | Indian modules with Indian cells |
| Net-metering and open-access C&I plants | Within ALMM's scope, subject to exemptions | Mostly Indian ALMM modules |
| Private captive plants outside ALMM's scope | Depends on connection and state rules | Compare landed cost, warranty and documentation |
For most commercial and industrial buyers the decision has shifted firmly towards Indian modules: duty and cess close much of the price gap, ALMM makes them mandatory for many connections, and service and warranty claims are simpler with a manufacturer in India.
Not sure which module route suits your project? We will compare options and paperwork before you commit.
Get a free solar quoteFrequently asked questions
What is the customs duty on solar panels in India in 2026?
What is the duty on imported solar cells?
Is there anti-dumping duty on Chinese solar modules?
Do I have to use Indian modules?
Sources
- Energetica India: Union Budget 2025-26 cuts duty on solar cells and modules to 20%
- pv magazine India, 2 Feb 2026: Union Budget 2026-27 and solar inputs
- China Briefing: An investor's guide to solar manufacturing in India
- PIB: MNRE amends the ALMM Order 2019 (List-II for solar cells)
This guide explains public policy in plain language for planning purposes. Rules, rates and deadlines change: confirm the current position with the notifying authority, your DISCOM and your tax adviser before you commit. Last checked 11 Oct 2026.
About the authors. Arrays Ingenieria is an ex-servicemen-led solar EPC and installation & commissioning company working Pan-India, from Assam's tea estates to industrial rooftops. Our story · Our projects
