DCR (Domestic Content Requirement) solar modules are more expensive compared to non-DCR modules for several reasons:
Why DCR modules is expensive?
1.Higher Production Costs: DCR modules are manufactured in India, which means manufacturers have to adhere to domestic content requirements. This leads to higher production costs due to factors like labor, material, and overhead expenses.
2.Local Sourcing of Components: DCR modules require the use of domestically sourced components, such as solar cells, which can be more expensive than imported components.
3.Research and Development: Indian manufacturers may invest in research and development to improve the quality and efficiency of their DCR modules, increasing costs.
4.Certification and Compliance: DCR modules must comply with Indian regulatory requirements, which can involve additional certification and testing costs.
5.Economies of Scale: Non-DCR modules are often manufactured in larger quantities, benefiting from economies of scale and lower costs.
6.Import Duty and Taxes: Non-DCR modules imported from countries like China may have lower import duties and taxes, making them cheaper.
7.Quality and Performance: DCR modules may offer higher quality and performance, which can justify the higher cost.
While DCR modules are more expensive, they promote domestic manufacturing, create jobs, and contribute to India's renewable energy goals.
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