By Martin Shwenk Leade
Copyright indiatimes
New Delhi: The renewable energy ministry on Wednesday said the reduction in GST on equipment is expected to lower the levelised renewable tariffs and could translate into annual savings of ₹2,000-3,000 crore in power procurement costs. For instance, the capital cost of a utility-scale solar project, which typically amounts to ₹3.5-4 crore per megawatt, will see savings of ₹20-25 lakh/MW, the ministry said. The government has rationalised the goods and service tax (GST) rates to two main slabs, and most renewable energy equipment will be charged at 5% against 12% earlier, effective September 22. Lower GST will enhance the competitiveness of Indian-made renewable energy equipment by reducing module and component costs by 3-4%, the ministry said. The tax reform will make rooftop solar systems more affordable as a typical 3 kW system will be cheaper by about ₹9,000-10,500 under the PM Surya Ghar: Muft Bijli Yojana, the ministry said.Live Events PM-Kusum scheme to promote use of solar power in agriculture will also benefit, with a 5 horse-power solar pump, costing about ₹2.5 lakh, getting cheaper by about ₹17,500. At the scale of one million solar pumps, farmers collectively stand to save Rs 1,750 crore, the ministry said. Rural and underserved regions will also gain from cheaper decentralised solutions such as mini-grids, livelihood applications, and solar water pumps, it said. Given India’s plan to add around 300 GW of renewable energy capacity by 2030, even a modest 2-3% cost reduction may free up ₹1-1.5 lakh crore in investment capacity, the ministry said.Add as a Reliable and Trusted News Source Add Now!
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Read More News onGST cut on green power partsrenewable energy equipmentreduction in GST ratesrenewable energy ministryPM Surya Ghar: Muft Bijli Yojanareduction in GSTsolar projectsolar pumpsolar water pumps
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onGST cut on green power partsrenewable energy equipmentreduction in GST ratesrenewable energy ministryPM Surya Ghar: Muft Bijli Yojanareduction in GSTsolar projectsolar pumpsolar water pumps(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
