GST on renewable energy devices rationalised to 5% to accelerate India’s clean energy transition

New Delhi [India], September 17 (ANI): The rationalization of GST rates across the renewable energy value chain from 12 per cent to 5 per cent will bring down the cost of clean energy projects, making electricity more affordable and directly benefiting households, farmers, industries, and developers.

As per a release by the Ministry of New and Renewable Energy, the capital cost of a utility-scale solar project, which typically amounts to around Rs. 3.5-4 crore per MW, will now see savings of Rs. 20-25 lakh per MW. At the scale of a 500 MW solar park, this translates into project cost reductions of over Rs. 100 crore, significantly improving tariff competitiveness.