NEW DELHI: A recent rise in goods and service tax (GST) on renewable energy equipment and the proposed custom duty on imported solar modules may push up tariffs in the coming year, a report by Crisil noted.
Solar power prices might jump from an all-time low of Rs 2 per unit to Rs 2.6-2.7 per unit in the next fiscal, it said.
The projection for price revision comes after the GST Council recently increased rate on critical components of a solar project such as photovoltaic cells and modules from 5 per cent to 12 per cent, with effect from October 1.
The total taxation on a solar project has also increased from 8-9 per cent to 12-13 per cent.
