Cheaper solar panels, lighter bills, and a ₹1.5 trillion investor windfall; India’s GST cut on renewables sparks festive cheer and fuels its 2030 clean energy drive, says Union Minister Pralhad Joshi.
India’s renewable energy sector is set to gain a major boost following a sharp reduction in Goods and Services Tax (GST) on green equipment. Union Minister for New and Renewable Energy, Pralhad Joshi, announced on Monday that the move could save investors up to ₹1.5 trillion by 2030.
The revised tax rates, effective from 22 September, were approved by the GST Council on the eve of Navratri. Rates on renewable energy equipment have been cut from 18% to 5%, a step the government says will accelerate progress towards India’s target of installing 500 GW of renewable capacity by 2030.
Speaking at the CII 6th International Energy Conference, Joshi thanked Prime Minister Narendra Modi for the decision. This reduction will lower project costs and free up significant investment potential, he said.
According to ministry estimates, even a 2–3% cut in costs could unlock savings worth ₹1–1.5 trillion as the country plans to add around 300 GW of renewable capacity in the coming years.
Meanwhile, consumers are also expected to benefit. Rooftop solar systems under the PM Surya Ghar: Muft Bijli Yojana will now be cheaper by ₹9000–10500 per 3 kW installation. Farmers using solar pumps under the PM-KUSUM scheme could save ₹17.5 billion collectively.
Highlighting India’s clean energy progress, Joshi noted that over 50% of the nation’s installed capacity now comes from non-fossil sources, achieved five years ahead of schedule. Madhya Pradesh recently recorded India’s lowest solar-plus-storage tariff at ₹2.70 per unit.
Joshi added that transmission infrastructure is being developed for 537GW of renewables. The government is also holding consultations with states on energy storage, power purchase agreements and transition planning.
Industry leaders and international partners, including the Maldives, echoed the need for collaboration to achieve sustainable energy independence.
