The cost of solar PV projects using Indian-made tunnel oxide passivated contact (TOPCon) modules fell by over 3.4% in Q4 2025, according to Mercom India Research.
Average PV equipment costs for large-scale solar projects in India showed mixed trends in the fourth quarter of 2025, Mercom said in its Q4 & Annual 2025 India Solar Market Update Report. Projects using Indian modules recorded consistent quarter-on-quarter (QoQ) declines, while systems built with Chinese tunnel oxide passivated contact (TOPCon) modules saw QoQ cost increases.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
Domestic content requirement (DCR)-compliant Indian TOPCon projects fell by over 3.4% during the quarter, with non-DCR TOPCon systems down nearly 3%. DCR-compliant Indian mono PERC projects declined by 2.8%, while non-DCR mono passivated emitter rear contact (PERC) configurations dropped 2.4%.
Projects using Chinese mono PERC modules recorded a 1.3% QoQ decline, with YoY costs falling by 5.8%. In contrast, Chinese TOPCon-based projects saw a 2.7% QoQ increase, reflecting higher Chinese cell prices following reductions in VAT export rebates and rising polysilicon prices.
Despite these steeper quarterly declines compared with some Chinese module categories, Indian module-based systems continued to operate at structurally higher overall cost levels, Mercom said. On a year-on-year (YoY) basis, DCR-compliant and non-DCR Indian mono PERC system costs declined by 2.7% and 7.9%, respectively, though the cost premium linked to domestic manufacturing and DCR compliance remained intact.
Across technologies, system cost movements ranged from a decline of over 3.4% to an increase of 2.7% in Q4 2025. However, the overall cost hierarchy remained unchanged, with Chinese module-based systems maintaining a clear pricing advantage over Indian and DCR-compliant alternatives.
Chinese mono PERC modules accounted for the lowest share of total system costs at 39.7%, highlighting their competitive edge driven by large-scale manufacturing and mature supply chains. By comparison, Indian TOPCon DCR-compliant modules represented the highest share at 61.9%, reflecting higher domestic production costs, limited manufacturing scale and the added premium of DCR compliance.
TOPCon DCR-based projects were the most expensive configuration, with costs approximately 37% to 38% higher than projects using Chinese modules and marginally above mono PERC DCR deployments.
Beyond modules, other cost components showed modest easing, the report said, with power conditioning units, primarily solar inverters, declining by 0.6% in Q4 2025 and accounting for 4.3% to 6.8% of total system costs. The marginal reduction reflects stable supply conditions and limited price volatility in inverter components.
Mercom previously reported that India installed a record 36.6GW of solar PV in 2025, up 43% from 25GW the year before. Annual additions exceeded 30GW for the first time, lifting cumulative capacity to 136GW by December 2025. Solar accounted for 68% of all new power capacity added during the year.
