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Government Slashes GST on Renewable Energy Devices from 12 Percent to 5 Percent
The GST Council has reduced the Goods and Services Tax (GST) on renewable energy devices and related parts from 12 percent to 5 percent, effective September 22, 2025, as part of its broader tax rationalisation reforms. It has also reduced GST on non-lithium-ion batteries to 18 percent from 28 percent.
September 04, 2025. By Mrinmoy Dey
The government has slashed the Goods and Services Tax (GST) on renewable energy devices and parts of their manufacturer from 12 percent to 5 percent. This is part of the government’s wide-scale GST rate rationalisation and process reforms spanning goods and services across segments and industries. The changes will be implemented with effect from September 22, 2025.
The decision was taken during the 56th meeting of the GST Council which was held in New Delhi under the chairpersonship of the Union Finance and Corporate Affairs Minister Nirmala Sitharaman.
The relaxation in GST rates will be applicable to solar power-based devices, solar power generators, solar lanterns/lamps, solar cookers, solar water heaters and systems. Photovoltaic (PV) cells, whether or not assembled in modules or made up into panels will also benefit from the reduction of the GST rate.
Wind mills and wind-operated electricity generator (WOEG), bio-gas plants and waste-to-energy plants/devices have also seen the reduction in GST rate from 12 percent to 5 percent. Other categories from the renewable energy sector include ocean waves/tidal waves energy devices/plants, and fuel cell motor vehicles including hydrogen vehicles based on fuel cell technology.
The Council has also lowered the GST on non-lithium-ion batteries, including lead-acid, sodium, and flow batteries, from 28 percent to 18 percent to boost grid-scale energy storage for renewable power. The GST on lithium-ion batteries remains unchanged at 18 percent.
Prime Minister Narendra Modi hailed the move, saying, “During my Independence Day Speech, I had spoken about our intention to bring the next-generation reforms in GST. The Union Government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and strengthening the economy. Glad to state that the GST Council, comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts and reforms, which will benefit the common man, farmers, MSMEs, middle-class, women and youth. The wide-ranging reforms will improve the lives of our citizens and ensure ease of doing business for all, especially small traders and businesses.”
Gautam Mohanka, Managing Director, Gautam Solar, remarked, “GST Council’s decision to reduce the GST rate on solar components from 12 percent to 5 percent marks a pivotal step in accelerating India's clean-energy transition. This significant reform greatly increases the accessibility of solar installations for households, businesses, and farmers across the country.”
With this, the government is making solar power more affordable and enabling faster adoption, which will directly help cut carbon emissions and reduce dependence on fossil fuels. “We believe this tax break will not only boost energy security and encourage new project pipelines but also contribute meaningfully to India's climate action commitments and its global responsibility to combat climate change,” added Mohanka.
Ajinkya Firodia, Vice Chairman of Kinetic India, remarked, “The GST rate cut will give a strong boost to the economy in an unprecedented manner. Essentials, including food, automobiles, and several other key sectors, have been rightly covered under this decision. This step aligns with the vision of making India self-sufficient—an Atmanirbhar Bharat. It will lower interest rates, facilitate employment generation, and encourage capacity augmentation across industries.”
He further emphasised that the electric vehicle (EV) sector should continue to be kept in special focus. “To ensure higher penetration of EVs, especially two-wheelers, we urge the continuation of supportive schemes so that this transformative sector does not face any adverse impact. EV adoption is critical for India’s sustainable growth and competitiveness,” Firodia added.
Dhruv Sharma, CEO, Jupiter International, commented, “GST Council has taken a historic step to reduce taxes on renewable energy components to 5 percent from 12 percent. This move not only brings down the cost of solar and clean energy solutions but also energizes the entire ecosystem—manufacturers, developers, and end users alike. It will also help in India’s clean energy momentum and make sustainable solutions more accessible to millions.”
Dr. Amit Paithankar, CEO and Whole-time Director, Waaree Energies, remarked, “The reduction of GST on renewable energy devices and equipment to a uniform 5 percent will lower project costs and accelerate the capacity addition needed to meet India’s clean energy targets. It also sends a strong signal to investors, improving the financial viability and attractiveness of the renewable energy sector.”
Moreover, this development will directly help reduce the overall cost of solar modules. “Waaree is committed to passing on these benefits to customers, which will make our products more competitive in the market. While the exact reduction will depend on project specifications and configurations, customers can expect a tangible decrease in module prices, further strengthening the case for solar adoption. The move will also help expand solar adoption in households across the country, supporting the implementation of the PM Surya Ghar Yojana,” added Paithankar.
Siddharth Bhatia, MD, Oyster Renewable Energy, said, “The GST Council's decision to reduce the tax rate on renewable energy components, including solar cells, windmill equipment, and biogas plants, to 5 percent represents a critical step forward for India's clean energy transition. As a hybrid IPP player committed to accelerating the adoption of renewable power, this move significantly lowers the input costs for project development and module manufacturing, thereby enhancing the overall economics of renewable energy projects.”
He further added, “This tax rationalisation is particularly timely as it coincides with India's ambitious targets for domestic manufacturing self-reliance under the Atmanirbhar Bharat initiative and the ongoing efforts to scale up green hydrogen mobility solutions. Lower GST rates will most definitely stimulate project pipeline growth by making renewable power generation more cost-competitive, thereby fostering stronger demand from distribution companies and corporate buyers alike.”
Moreover, addressing the inverted duty structure with expedited refund mechanisms will streamline liquidity for manufacturers and developers, easing cash flow and allowing faster capacity expansion. “For hybrid IPPs navigating the complexities of integrating renewables with conventional power assets, this creates an enabling environment for flexible, scalable, and financially viable clean energy portfolios,” opines Bhatia.
Rajeev Kashyap, SVP and General Manager for India, Middle East, and Africa, Nextracker remarked, “This reform will benefit developers, power producers, and consumers alike by lowering project costs, enhancing viability, and enabling faster adoption across industries and utilities. Importantly, it also strengthens the case for domestic manufacturing, supporting India’s efforts to build a resilient supply chain for critical components. More competitive and higher-yield projects will attract greater investment into the sector, fuelling India’s renewable energy ambitions. At Nextracker, we are deeply aligned with the Make in India vision, and this policy change further empowers us to scale local manufacturing of solar trackers while contributing to the nation’s clean energy goals.”
Akshay Hiranandani, CEO, Serentica Renewables emphasised that the reduction of GST on renewable energy equipment from 12 percent to 5 percent will significantly improve project cost efficiency, enabling faster deployment of clean power. “Lower capital costs will translate into more competitive tariffs in auctions, supporting quicker capacity addition and passing direct benefits to consumers,” he said.
Girish Tanti, Co-Founder and Vice Chairman, Suzlon Group commented, “The recently announced GST reforms by government shall provide immediate boost to various products and services across industries. The fiscal nudge from 12 percent to 5 percent for renewable devices shall help in accelerating adoption of renewable energy and building robust manufacturing ecosystem toward achieving our National goals of NetZero and Atmanirbhar Bharat set out by the PM.”
JP Chalasani, CEO, Suzlon Group added, “The GST reduction is a decisive step that will significantly reduce power tariffs, making clean energy more affordable for consumers and improving project economics for developers. In wind energy, lower taxation on turbines, nacelles, blades, and balance-of-plant components will cut capital intensity and the levelized cost of energy — enabling faster commissioning, stronger investor returns, and greater capacity additions. Reforms like this go beyond the energy sector; they stimulate domestic manufacturing, create thousands of jobs, and directly contribute to India’s GDP growth.”
The decision was taken during the 56th meeting of the GST Council which was held in New Delhi under the chairpersonship of the Union Finance and Corporate Affairs Minister Nirmala Sitharaman.
The relaxation in GST rates will be applicable to solar power-based devices, solar power generators, solar lanterns/lamps, solar cookers, solar water heaters and systems. Photovoltaic (PV) cells, whether or not assembled in modules or made up into panels will also benefit from the reduction of the GST rate.
Wind mills and wind-operated electricity generator (WOEG), bio-gas plants and waste-to-energy plants/devices have also seen the reduction in GST rate from 12 percent to 5 percent. Other categories from the renewable energy sector include ocean waves/tidal waves energy devices/plants, and fuel cell motor vehicles including hydrogen vehicles based on fuel cell technology.
The Council has also lowered the GST on non-lithium-ion batteries, including lead-acid, sodium, and flow batteries, from 28 percent to 18 percent to boost grid-scale energy storage for renewable power. The GST on lithium-ion batteries remains unchanged at 18 percent.
Prime Minister Narendra Modi hailed the move, saying, “During my Independence Day Speech, I had spoken about our intention to bring the next-generation reforms in GST. The Union Government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and strengthening the economy. Glad to state that the GST Council, comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts and reforms, which will benefit the common man, farmers, MSMEs, middle-class, women and youth. The wide-ranging reforms will improve the lives of our citizens and ensure ease of doing business for all, especially small traders and businesses.”
Gautam Mohanka, Managing Director, Gautam Solar, remarked, “GST Council’s decision to reduce the GST rate on solar components from 12 percent to 5 percent marks a pivotal step in accelerating India's clean-energy transition. This significant reform greatly increases the accessibility of solar installations for households, businesses, and farmers across the country.”
With this, the government is making solar power more affordable and enabling faster adoption, which will directly help cut carbon emissions and reduce dependence on fossil fuels. “We believe this tax break will not only boost energy security and encourage new project pipelines but also contribute meaningfully to India's climate action commitments and its global responsibility to combat climate change,” added Mohanka.
Ajinkya Firodia, Vice Chairman of Kinetic India, remarked, “The GST rate cut will give a strong boost to the economy in an unprecedented manner. Essentials, including food, automobiles, and several other key sectors, have been rightly covered under this decision. This step aligns with the vision of making India self-sufficient—an Atmanirbhar Bharat. It will lower interest rates, facilitate employment generation, and encourage capacity augmentation across industries.”
He further emphasised that the electric vehicle (EV) sector should continue to be kept in special focus. “To ensure higher penetration of EVs, especially two-wheelers, we urge the continuation of supportive schemes so that this transformative sector does not face any adverse impact. EV adoption is critical for India’s sustainable growth and competitiveness,” Firodia added.
Dhruv Sharma, CEO, Jupiter International, commented, “GST Council has taken a historic step to reduce taxes on renewable energy components to 5 percent from 12 percent. This move not only brings down the cost of solar and clean energy solutions but also energizes the entire ecosystem—manufacturers, developers, and end users alike. It will also help in India’s clean energy momentum and make sustainable solutions more accessible to millions.”
Dr. Amit Paithankar, CEO and Whole-time Director, Waaree Energies, remarked, “The reduction of GST on renewable energy devices and equipment to a uniform 5 percent will lower project costs and accelerate the capacity addition needed to meet India’s clean energy targets. It also sends a strong signal to investors, improving the financial viability and attractiveness of the renewable energy sector.”
Moreover, this development will directly help reduce the overall cost of solar modules. “Waaree is committed to passing on these benefits to customers, which will make our products more competitive in the market. While the exact reduction will depend on project specifications and configurations, customers can expect a tangible decrease in module prices, further strengthening the case for solar adoption. The move will also help expand solar adoption in households across the country, supporting the implementation of the PM Surya Ghar Yojana,” added Paithankar.
Siddharth Bhatia, MD, Oyster Renewable Energy, said, “The GST Council's decision to reduce the tax rate on renewable energy components, including solar cells, windmill equipment, and biogas plants, to 5 percent represents a critical step forward for India's clean energy transition. As a hybrid IPP player committed to accelerating the adoption of renewable power, this move significantly lowers the input costs for project development and module manufacturing, thereby enhancing the overall economics of renewable energy projects.”
He further added, “This tax rationalisation is particularly timely as it coincides with India's ambitious targets for domestic manufacturing self-reliance under the Atmanirbhar Bharat initiative and the ongoing efforts to scale up green hydrogen mobility solutions. Lower GST rates will most definitely stimulate project pipeline growth by making renewable power generation more cost-competitive, thereby fostering stronger demand from distribution companies and corporate buyers alike.”
Moreover, addressing the inverted duty structure with expedited refund mechanisms will streamline liquidity for manufacturers and developers, easing cash flow and allowing faster capacity expansion. “For hybrid IPPs navigating the complexities of integrating renewables with conventional power assets, this creates an enabling environment for flexible, scalable, and financially viable clean energy portfolios,” opines Bhatia.
Rajeev Kashyap, SVP and General Manager for India, Middle East, and Africa, Nextracker remarked, “This reform will benefit developers, power producers, and consumers alike by lowering project costs, enhancing viability, and enabling faster adoption across industries and utilities. Importantly, it also strengthens the case for domestic manufacturing, supporting India’s efforts to build a resilient supply chain for critical components. More competitive and higher-yield projects will attract greater investment into the sector, fuelling India’s renewable energy ambitions. At Nextracker, we are deeply aligned with the Make in India vision, and this policy change further empowers us to scale local manufacturing of solar trackers while contributing to the nation’s clean energy goals.”
Akshay Hiranandani, CEO, Serentica Renewables emphasised that the reduction of GST on renewable energy equipment from 12 percent to 5 percent will significantly improve project cost efficiency, enabling faster deployment of clean power. “Lower capital costs will translate into more competitive tariffs in auctions, supporting quicker capacity addition and passing direct benefits to consumers,” he said.
Girish Tanti, Co-Founder and Vice Chairman, Suzlon Group commented, “The recently announced GST reforms by government shall provide immediate boost to various products and services across industries. The fiscal nudge from 12 percent to 5 percent for renewable devices shall help in accelerating adoption of renewable energy and building robust manufacturing ecosystem toward achieving our National goals of NetZero and Atmanirbhar Bharat set out by the PM.”
JP Chalasani, CEO, Suzlon Group added, “The GST reduction is a decisive step that will significantly reduce power tariffs, making clean energy more affordable for consumers and improving project economics for developers. In wind energy, lower taxation on turbines, nacelles, blades, and balance-of-plant components will cut capital intensity and the levelized cost of energy — enabling faster commissioning, stronger investor returns, and greater capacity additions. Reforms like this go beyond the energy sector; they stimulate domestic manufacturing, create thousands of jobs, and directly contribute to India’s GDP growth.”
Ratul Puri, Chairman, Hindustan Power said, “While the tax rate on coal has been raised from 5 percent to 18 percent, the overall impact will be minor as the existing compensation cess of INR 400 per tonne has now been subsumed within the GST rate. However, to support the transition from fossil fuels to non-fossil sources, the reduction of GST on renewable sector products from 12 percent to 5 percent is truly transformative. It will further enhance renewable energy capacity and accelerate the adoption of green technologies such as biogas, solar cells, green hydrogen and battery energy storage systems.”
Preeti Bajaj, MD and CEO, Luminous Power Technologies remarked, “The GST Council's decision to reduce the tax on renewable energy devices and key energy storage solutions is a transformative step for India's green transition. By lowering the GST on renewable energy devices to 5 percent and on non-lithium batteries to 18 percent, this reform makes clean energy and storage solutions more affordable and accessible for households and businesses. This is a powerful move that will not only boost demand and accelerate the adoption of solar energy but also strengthen grid stability and long duration storage for renewable power.”
Gyanesh Chaudhary, Chairman and Managing Director, Vikram Solar remarked, “The GST Council’s decision to reduce tax on solar components to 5 percent is a timely move that strengthens the foundations of India’s energy transition. Lowering project costs will accelerate solar adoption across sectors and bring clean energy closer to millions of homes and businesses.”
He further added that the GST cut gives a clear signal in support of Atmanirbhar Bharat, encouraging investment in solar cell and module production and reinforcing our path to self-reliance. “Equally significant is the reduction in tax on non-lithium-ion batteries. As India increases its renewable energy generation, building scalable, long-duration energy storage solutions is critical for grid stability and round-the-clock power,” opined Chaudhary.
Sameer Gupta, Chairman, Jakson Group shared, “A landmark decision by the GST Council to reduce the tax on renewable energy equipment — including solar cells, silicon wafers, photovoltaic modules, windmills, and biogas plants — from 12 percent to 5 percent marks a critically important step in advancing India’s clean energy transition. This move will lower input costs for project development and module manufacturing, strengthen the economic viability of renewable projects, and make solar power more affordable for households, businesses, and farmers across the country.”
He further added, “We see this reform not only as a near-term boost to project viability, but also as a long-term enabler of domestic manufacturing. While India has achieved significant milestones in solar module production, reliance on foreign imports for upstream components continues. Rationalising GST pricing creates a more competitive environment that encourages investment and supports the growth of a robust 'Made in India' solar supply chain.”
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility commented, “The GST Council’s decision to retain the 5 percent GST rate on electric vehicles is a forward-looking move that reinforces India’s commitment to sustainable, zero-emission mobility and signals long term policy stability. The reduction of GST on small cars to 18 percent further expands access to personal mobility, making it more affordable for a broader section of society. Together, these measures will not only accelerate EV adoption but also drive innovation, strengthen domestic manufacturing, and propel India toward a cleaner, smarter, and self-reliant mobility future.”
Neerav Nanavaty, CEO, BluPine Energy, stated, “The GST Council’s cut in GST on renewable-energy equipment from 12 percent to 5 percent is timely—unlocking EPC capex and lowering the levelised cost of energy amid volatile input and logistics costs. While this deepens the inverted duty structure, the Government has reaffirmed a steadfast refund mechanism with expedited processing, easing working-capital pressures for developers and manufacturers. The signal is clear: promote renewable-energy goods, accelerate execution, and nudge tariffs lower for discoms and, ultimately, consumers.”
Vipin Tiwari, Corporate Strategy Manager, AXITEC Energy India Pvt. Ltd, said, “The Indian government’s decision to cut GST on solar products from 12 percent to 5 percent is a welcome move to make clean energy more affordable, particularly for domestic consumers not registered under GST. This reduction eases the financial burden on households, supports the PM Surya Ghar Yojana, and is expected to accelerate solar adoption. The renewable energy sector has widely welcomed this step as a strong push toward India’s sustainability goals.”
Gyanesh Chaudhary, Chairman and Managing Director, Vikram Solar remarked, “The GST Council’s decision to reduce tax on solar components to 5 percent is a timely move that strengthens the foundations of India’s energy transition. Lowering project costs will accelerate solar adoption across sectors and bring clean energy closer to millions of homes and businesses.”
He further added that the GST cut gives a clear signal in support of Atmanirbhar Bharat, encouraging investment in solar cell and module production and reinforcing our path to self-reliance. “Equally significant is the reduction in tax on non-lithium-ion batteries. As India increases its renewable energy generation, building scalable, long-duration energy storage solutions is critical for grid stability and round-the-clock power,” opined Chaudhary.
Sameer Gupta, Chairman, Jakson Group shared, “A landmark decision by the GST Council to reduce the tax on renewable energy equipment — including solar cells, silicon wafers, photovoltaic modules, windmills, and biogas plants — from 12 percent to 5 percent marks a critically important step in advancing India’s clean energy transition. This move will lower input costs for project development and module manufacturing, strengthen the economic viability of renewable projects, and make solar power more affordable for households, businesses, and farmers across the country.”
He further added, “We see this reform not only as a near-term boost to project viability, but also as a long-term enabler of domestic manufacturing. While India has achieved significant milestones in solar module production, reliance on foreign imports for upstream components continues. Rationalising GST pricing creates a more competitive environment that encourages investment and supports the growth of a robust 'Made in India' solar supply chain.”
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility commented, “The GST Council’s decision to retain the 5 percent GST rate on electric vehicles is a forward-looking move that reinforces India’s commitment to sustainable, zero-emission mobility and signals long term policy stability. The reduction of GST on small cars to 18 percent further expands access to personal mobility, making it more affordable for a broader section of society. Together, these measures will not only accelerate EV adoption but also drive innovation, strengthen domestic manufacturing, and propel India toward a cleaner, smarter, and self-reliant mobility future.”
Neerav Nanavaty, CEO, BluPine Energy, stated, “The GST Council’s cut in GST on renewable-energy equipment from 12 percent to 5 percent is timely—unlocking EPC capex and lowering the levelised cost of energy amid volatile input and logistics costs. While this deepens the inverted duty structure, the Government has reaffirmed a steadfast refund mechanism with expedited processing, easing working-capital pressures for developers and manufacturers. The signal is clear: promote renewable-energy goods, accelerate execution, and nudge tariffs lower for discoms and, ultimately, consumers.”
Vipin Tiwari, Corporate Strategy Manager, AXITEC Energy India Pvt. Ltd, said, “The Indian government’s decision to cut GST on solar products from 12 percent to 5 percent is a welcome move to make clean energy more affordable, particularly for domestic consumers not registered under GST. This reduction eases the financial burden on households, supports the PM Surya Ghar Yojana, and is expected to accelerate solar adoption. The renewable energy sector has widely welcomed this step as a strong push toward India’s sustainability goals.”
Divya Prakash Choraria, CEO and Co-founder of WattPower, added, "The reduction of GST on renewable energy equipment from 12 percent to 5 percent is a timely and much-needed boost. Lowering project costs directly improves affordability for developers and consumers, accelerating India’s clean energy transition. It’s a clear signal of the government’s commitment to making renewable energy mainstream, and we believe it will unlock fresh momentum for solar adoption across the country.”
Amit Jain, CEO and Country Manager India, MD Renewables and Batteries India and South-East Asia, ENGIE emphasised, "The GST Council’s decision to reduce the GST rate on renewable energy equipment to 5 percent marks a significant step forward in India’s clean energy journey. As a global energy utility committed to accelerating the energy transition, ENGIE India welcomes this policy shift. With 2.3 GW of renewable capacity and ambitious plans to scale further, ENGIE remains deeply committed to supporting India’s target of 500 GW of renewables and achieving a carbon-neutral future. This progressive move will not only encourage renewable energy players in India by strengthening liquidity across the renewable value chain but also fast-track the execution of green projects."
Amit Jain, CEO and Country Manager India, MD Renewables and Batteries India and South-East Asia, ENGIE emphasised, "The GST Council’s decision to reduce the GST rate on renewable energy equipment to 5 percent marks a significant step forward in India’s clean energy journey. As a global energy utility committed to accelerating the energy transition, ENGIE India welcomes this policy shift. With 2.3 GW of renewable capacity and ambitious plans to scale further, ENGIE remains deeply committed to supporting India’s target of 500 GW of renewables and achieving a carbon-neutral future. This progressive move will not only encourage renewable energy players in India by strengthening liquidity across the renewable value chain but also fast-track the execution of green projects."
Shivam Sisodiya, Founder and CEO of Bijliride, stated, “The GST overhaul keeps India’s EV momentum intact. Maintaining a 5 percent GST on electric vehicles sends a powerful, stable signal to consumers and investors alike. For the rental ecosystem, this will translate into more first-time trials and higher app activity as users experience electricity without the commitment of ownership. The next big unlock is straightforward: align battery swapping and charging with the same 5 percent rate. Today’s 18 percent on energy services creates an inverted duty structure that ties up capital and puts pressure on ride economics. Harmonising these rates would make EV rides instantly more affordable, accelerate network build-out, and support thousands of delivery partners who depend on reliable, low-cost mobility."
Samkit Shah, Co-founder, Jitendra EV, said, “We welcome the historic GST reforms announced in the 56th Council meeting. The rationalization of rates on key inputs like batteries and components will bring down manufacturing costs, making electric two-wheelers more affordable for customers. The move will also ease working capital pressure for MSMEs through faster refunds, support localisation, and encourage innovation. Overall, this reform strengthens India’s clean mobility vision and will accelerate EV adoption across both urban and rural markets.”
Hiten Parekh, President – Global Sales, GREW Solar, commented, “Reducing GST rates on renewable energy components by GST Council is a transformative step for the sector. By lowering the cost of solar parts, it eases barriers for both established developers and emerging players. More importantly, it makes clean energy more accessible while strengthening India’s solar manufacturing ecosystem by channeling demand into domestic supply chains and creating new avenues for employment across the value chain."
Samkit Shah, Co-founder, Jitendra EV, said, “We welcome the historic GST reforms announced in the 56th Council meeting. The rationalization of rates on key inputs like batteries and components will bring down manufacturing costs, making electric two-wheelers more affordable for customers. The move will also ease working capital pressure for MSMEs through faster refunds, support localisation, and encourage innovation. Overall, this reform strengthens India’s clean mobility vision and will accelerate EV adoption across both urban and rural markets.”
Hiten Parekh, President – Global Sales, GREW Solar, commented, “Reducing GST rates on renewable energy components by GST Council is a transformative step for the sector. By lowering the cost of solar parts, it eases barriers for both established developers and emerging players. More importantly, it makes clean energy more accessible while strengthening India’s solar manufacturing ecosystem by channeling demand into domestic supply chains and creating new avenues for employment across the value chain."
Shreya Mishra, Co-Founder and CEO, SolarSquare, remarked, “The GST reduction on solar modules and components from 12% to 5% is a big win for homeowners planning to switch to solar. We applaud the government for this progressive step, as lower taxes will make rooftop solar more affordable, shorten payback periods, and boost monthly savings for families. This should accelerate adoption, particularly among middle-income households that were earlier holding back due to high upfront costs. Over the next 6–12 months, we anticipate stronger interest in rooftop solar, reflected in higher enquiries and installations as affordability improves.”
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