--- title: Solar Import Duty in India 2026 | Arrays Ingenieria description: Customs duty on imported solar modules and cells in 2026: BCD at 20% plus AIDC, Budget 2026-27 changes, anti-dumping and what buyers should do. url: https://arraysingenieria.com/solar-import-duty-india/ last_updated: 2026-10-11 source: Arrays Ingenieria (Arrays Ingenieria Pvt. Ltd.) --- Guide · Policy # Solar Import Duty in India (2026): Customs on Modules and Cells, and What Budget 2026-27 Changed Customs duty on imported solar equipment was restructured in Budget 2025-26 and adjusted again in Budget 2026-27. The rates, the reasoning, and how they shape module prices and your choice of supplier. On this page - Why import duty matters for a solar plant - The rates after Budget 2025-26 - What Budget 2026-27 changed - Anti-dumping and other trade remedies - What this means for buyers - Frequently asked questions - Sources By the [Arrays Ingenieria engineering team](https://arraysingenieria.com/about/) · Updated 11 Oct 2026 · 3 min read **Key takeaways** - 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](https://arraysingenieria.com/almm-list-ii-solar-cells/) 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. Customs duty on imported solar cells and modules (after Budget 2025-26) | 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% | **Why restructure at all?** Moving part of the duty into a cess changes how revenue is shared between the Centre and the states and how some exemptions apply, while keeping the price signal for importers roughly where it was. ## 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 Imported versus Indian modules for common project types (2026) | 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 quote](https://arraysingenieria.com/free-solar-quote/) ## Frequently asked questions What is the customs duty on solar panels in India in 2026? After Budget 2025-26, BCD on modules is 20% with a 20% AIDC added, a combined level of about 40%. Budget 2026-27 did not change these headline rates. What is the duty on imported solar cells? BCD of 20% plus 7.5% AIDC, about 27.5% combined, after Budget 2025-26. Is there anti-dumping duty on Chinese solar modules? DGTR recommended anti-dumping duties on Chinese-origin cells and modules in September 2025. Check the Finance Ministry's notification for the current status before importing. Do I have to use Indian modules? For scheme-backed and government-linked projects, yes. For other projects it depends on ALMM's scope for your connection and on state rules; compare landed cost, warranty and documentation. ## Sources - [Energetica India: Union Budget 2025-26 cuts duty on solar cells and modules to 20%](https://www.energetica-india.net/news/union-budget-2025-26-solar-cells-and-modules-duty-cut-to-20-percent) - [pv magazine India, 2 Feb 2026: Union Budget 2026-27 and solar inputs](https://www.pv-magazine-india.com/2026/02/02/indias-union-budget-2026-27-removes-import-duties-on-solar-glass-inputs-lithium-battery-cell-machinery-and-critical-minerals-processing-equipment/) - [China Briefing: An investor's guide to solar manufacturing in India](https://www.china-briefing.com/china-outbound-news/an-investors-guide-to-solar-manufacturing-in-india) - [PIB: MNRE amends the ALMM Order 2019 (List-II for solar cells)](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082901) 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](https://arraysingenieria.com/ex-servicemen-led-msme/) · [Our projects](https://arraysingenieria.com/projects/) [CAPEX Solar EPC](https://arraysingenieria.com/capex-solar-epc/)[EPC Turnkey](https://arraysingenieria.com/service-epc/) From Our Sites ## Case Studies on This Topic Real plants our veteran-led crews have built, with the scope of work in detail. [Industrial · Rooftop: **Super Smelters: 1980.3 kWp Rooftop Solar Plant**1980.3 kWp (about 2 MW) · Jamuria (Asansol), West BengalRead the case study](https://arraysingenieria.com/project-super-smelters-1980kwp-rooftop-solar/) Keep Reading ## Related Guides [Market Update: **India's Solar Capacity in 2026: 171 GW and What It Means for Your Business**MNRE data put India's solar fleet at 171.05 GW on 30 September 2026. Where the growth is, why rooftop and C&I solar are surging, and how to plan a plant in a crowded market.4 min read · Updated 11 Oct 2026](https://arraysingenieria.com/india-solar-capacity-2026/)[Tax: **GST on Solar in India (2026): 5% on Equipment, About 8.9% on EPC Contracts**The GST Council cut GST on solar devices from 12% to 5% from 22 September 2025. 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