‘GST Cut Will Result In Savings Of ₹1.5 Trillion’: Union Minister For Renewable Energy, Pralhad Joshi
New Delhi: The reduction of Goods and Services Tax (GST) on the renewable energy value chain from 12 per cent to 5 per cent is set to bring significant cost savings, Union Minister for New and Renewable Energy, Pralhad Joshi, has announced. According to Joshi, this move will save up to Rs 1–1.5 trillion by 2030, playing a crucial role in achieving India’s ambitious target of 500 gigawatts (GW) of installed renewable energy (RE) capacity by the end of the decade.
India has already added 252 GW of renewable energy capacity and expects to install an additional 248 GW over the next five years. “This GST cut will result in savings of approximately Rs 1 to 1.5 trillion. This will be the biggest advantage,” the minister said during a media event.
The Ministry of New and Renewable Energy (MNRE) highlighted that the tax reduction will lower project costs and improve consumer access to clean electricity. For instance, the capital cost of a utility-scale solar project, which previously ranged between Rs 3.5 and 4 crore per megawatt (MW), will now decrease by Rs 20–25 lakh per MW. This translates to cost savings exceeding Rs 100 crore for a 500 MW solar park, enhancing tariff competitiveness.
On the residential front, the price of a 3 kW rooftop solar system will now range between Rs 9,000 and Rs 10,500 per household. This price drop is expected to encourage greater adoption, particularly under the government’s PM Surya Ghar: Muft Bijli Yojana scheme.
In addition to the GST cut, the Centre is developing a comprehensive plan to build a self-sufficient solar manufacturing ecosystem. This initiative aims to cover the entire supply chain, including polysilicon, wafers, and ingots. Minister Joshi indicated that programs such as the Production Linked Incentive (PLI) and Viability Gap Funding (VGF) could be utilized to promote domestic manufacturing capacity.
Moreover, the MNRE is working toward incorporating wafers and ingots into the Approved List of Models and Manufacturers (ALMM). According to a draft amendment, ALMM List III for wafers is expected to be implemented from June 2028, contingent upon the establishment of at least three separate manufacturing facilities with a combined production capacity of 15 GW.
These measures collectively are set to strengthen India’s renewable energy sector by reducing costs, promoting domestic manufacturing, and accelerating clean energy adoption across the country.
*Disclaimer: This story is sourced from a syndicated feed. Only the headline has been changed.*
https://www.freepressjournal.in/business/gst-cut-will-result-in-savings-of-15-trillion-union-minister-for-renewable-energy-pralhad-joshi
You may also like
Leave a Reply