GST Cut on Solar Components: What It Means for Kerala and India’s Renewable Energy Future

GST Cut on Solar Components: The Goods and Services Tax (GST) Council has announced a major relief for renewable energy by reducing the GST on renewable energy equipment from 12% to 5% . This includes solar modules, solar cells, solar cookers, biogas plants, windmills, waste-to-energy devices, hydrogen fuel-cell vehicles, and more. The move is expected to lower equipment costs by nearly 7% , reducing the cost of installing rooftop solar plants by ₹3,000–₹4,000 per kilowatt . However, GST on installation services will remain unchanged at 18% . Boost for Renewable Energy The revised 5% GST rate is a significant step toward promoting solar energy in Kerala and across India . With India’s domestic solar module capacity reaching 100 GW , the government is working to strengthen local manufacturing, though reliance on imports for wafers and ingots remains. The Production-Linked Incentive (PLI) scheme worth ₹19,500 crore has faced delays, but the tax cut is expected to encourage adoption of...