The solar panel manufacturing industry in India is currently undergoing a profound transformation. For small and medium-sized manufacturers, this era represents more than just production; it’s a complex interplay of market dynamics, government policies, and customer trust. While the Indian solar sector has experienced rapid growth in recent years, its future trajectory now faces fresh challenges that require more than just high-quality manufacturing. A skilled, strategic marketing team is no longer a secondary consideration; it has become the cornerstone of long-term success in this evolving landscape.
For many small and medium-sized manufacturers, the primary challenge lies in their reliance on imported solar cells, despite their modules being listed on the Approved List of Models and Manufacturers (ALMM) List I. While these manufacturers are capable of producing high-quality solar modules, their dependency on imported cells for assembly remains a core issue. As India strives towards greater self-reliance under the Atmanirbhar Bharat initiative, this reliance on imports presents a
significant barrier. In this context, having a skilled marketing team that understands the nuances of the market and can deliver clear, targeted messaging becomes essential.
Here we will explore the key challenges confronting small and medium-sized solar manufacturers and highlight the critical role that a robust marketing strategy plays in addressing these challenges.
The DCR vs. Non-DCR Divide:
A key challenge in the Indian solar market is the Domestic Content Requirement (DCR), which creates a divide between two distinct market segments: DCR and Non-DCR panels. DCR panels are those that incorporate domestically manufactured solar
cells and modules. These panels are mandatory for participation in government initiatives like PMKUSUM, which supports solar projects in rural areas, as well as other government-funded schemes offering subsidies. However, DCR panels typically
carry a higher price tag due to the costs associated with domestic production. As a result, they are often less appealing to price-sensitive customers.
On the other hand, Non-DCR panels, while more affordable upfront, are not eligible for government incentives. These panels may appeal to customers prioritising immediate cost savings and efficiency, but they forgo access to the lucrative government
projects that specifically incentivize the use of DCR products.
Navigating this bifurcation demands a highly skilled marketing team capable of effectively balancing the distinct needs of two disparate customer segments. For the marketing team to thrive in this environment, the following strategies are crucial:
• Audience Segmentation: Marketing strategies should prioritise customer segmentation based on their unique motivations and needs. For government clients seeking incentives, the messaging should emphasise the long-term financial benefits of DCR panels, highlighting access to subsidies and alignment with the national shift toward clean energy. For costconscious customers, non-DCR panels should be positioned as a budget-friendly, efficient solution that addresses immediate energy
needs without compromising on quality.
• Highlighting Value: To effectively communicate the benefits of both types of panels, the marketing strategy should highlight the unique advantages of each. For DCR panels, the narrative should emphasise not only the initial cost but also the long-term value derived from government incentives, coupled with the stability and reliability of a domestic supply chain. For non-DCR panels, the messaging should focus on their immediate costeffectiveness, superior energy efficiency, and the overall lower upfront investment required, making them an attractive option for budgetconscious consumers.
By clearly differentiating between the two types of panels, a knowledgeable marketing team can help customers feel informed, confident, and ready to invest in solar energy, no matter their budget or project requirements.
The upcoming enforcement of the ALMM List II presents a significant challenge for the solar industry. This regulation will require all government and government-aided solar projects to exclusively use domestically produced, ALMM-listed solar cells.
Set to be implemented soon, this policy creates substantial hurdles for manufacturers who lack inhouse solar cell production capabilities. Companies dependent on imported cells for module assembly will face a competitive disadvantage when bidding
for government contracts.
The marketing team’s primary responsibility is to uphold confidence and trust, both with clients and within the industry. Rather than highlighting the absence of in-house cell production, the marketing narrative should shift toward emphasising
transparency and fostering trust in the supply chain. A well-crafted strategy should incorporate a variety of robust elements to ensure long-term success and adaptability:
• Building Supply Chain Trust: Manufacturers should prioritise highlighting their strong partnerships with trusted cell suppliers in their marketing efforts, underscoring their commitment to transparency and rigorous quality control. Customers need to be confident that the company has reliable access to high quality, ALMM-compliant solar cells and that these strategic partnerships guarantee the consistency and reliability of their solar projects.
• Proactive Communication: The marketing team must proactively engage with clients to demonstrate how the company is adapting to the evolving regulatory landscape. By communicating transparently about the company’s response to ALMM List II, clients will be reassured that their projects will continue smoothly and that the company remains a trusted partner, even in the face of new compliance challenges.
The significance of clear, strategic communication annot be emphasised enough. Manufacturers who successfully cultivate trust regarding the forthcoming regulatory changes will be in a stronger position to navigate challenges effectively and sustain their ability to secure government contracts.
The Shift in Marketing Strategy : From Product Focus to Strategic Partnership
The most significant shift for small and mediumsized solar manufacturers lies in the need to pivot their marketing strategies from merely selling products to fostering comprehensive partnerships. In a market increasingly shaped by evolving policies and intensifying competition, manufacturers can no longer depend solely on competing over cell technology or pricing. Instead, the emphasis must shift towards demonstrating the broader value that extends beyond the product itself.
To remain competitive, small and medium manufacturers must position themselves as fullservice providers, offering more than just solar modules. The marketing approach must therefore emphasise:
• Showcasing Expertise: The marketing team should emphasise the company’s core strengths, such as its expertise in high-quality module assembly, rigorous quality control processes, and custom-tailored project solutions that meet the unique needs of each client. Manufacturers should highlight their technical proficiency in delivering efficient, cost-effective solar systems
that adhere to the highest industry standards.
• Promoting Value-Added Services: In today’s highly competitive market, manufacturers must go beyond simply offering products to truly differentiate their brands. Effective marketing should highlight value-added services such as expert technical support, flexible financing solutions, and comprehensive after-sales care. These services help foster long-term customer relationships, cultivating brand loyalty and trust. By positioning the company as a dedicated partner in the customer’s solar
energy journey, rather than just a vendor in a one-time transaction, manufacturers can create lasting value and ensure continued success.
This transition from a product-centric to a partnership-driven approach is essential for establishing a sustainable competitive advantage in a policy-driven market.
The Conclusion:
The Indian solar panel manufacturing industry is at a pivotal juncture, grappling with numerous hallenges and regulatory shifts that require more than just technical proficiency. To successfully navigate this evolving landscape, a well-organised
and strategic marketing team has become indispensable. From the complexities of the DCR vs. non-DCR divide to the introduction of ALMM List II regulations, manufacturers must be adept at communicating the distinct value propositions of
both product categories. By fostering trust across the supply chain and shifting the focus from mere product sales to cultivating long-term partnerships, manufacturers can better position themselves to thrive in this dynamic market environment.
In the dynamic and policy-driven solar market, the marketing team is a pivotal asset for small and medium-sized manufacturers, enabling them not only to navigate but also to excel in the industry. They possess the expertise to translate complex regulatory frameworks into clear, compelling value propositions, ensuring that their brand emerges as
a trusted and indispensable partner in India’s solar energy landscape.
