India Lowers Solar Efficiency Threshold for Off-Grid Devices

In May 2025, MNRE's moved aims to cut costs and expand solar coverage in power-deprived rural areas, but sparks debate on quality risks.

Key Points

Policy Shift: The Ministry of New and Renewable Energy (MNRE) has lowered the minimum efficiency threshold for solar modules in off-grid applications below 200W (e.g., lamps, fans, and streetlights) to 18% for both crystalline silicon and cadmium telluride (CdTe) panels.
Rationale: Intended to support small-scale manufacturers, lower costs, and accelerate rural solar adoption, especially under the Distributed Renewable Energy (DRE) category.
Previous Standards: Earlier efficiency norms for such off-grid modules were 19% for crystalline silicon and 18% for CdTe.
Industry Impact:
- Potential rise in installations of solar streetlights and home appliances in power-scarce regions.
- Lower efficiency may reduce long-term durability and require more space per unit output.
India’s Off-Grid Solar Snapshot (as of April 2025):
- 4.98 GW of off-grid solar capacity
- 1.7M solar home lighting systems
- 8.4M solar lamps
- 944,000 solar streetlights