Indian Green Industry Responds To GST Revisions On RE Products

A day when the GST Council decided to reduce Goods and Services Tax (GST) on key renewable energy items like solar cells, modules, wind energy equipment and other items, key industry leaders have responded to the changes. Most of the leaders welcomed the decision owing to the lesser burden on manufacturers and developers.

The reduction in taxation was a long-pending demand of the solar industry. A number of the top management of several big and smaller firms were demanding slashing GST rates on solar items be slashed to spur their growth. Several companies had demanded and expressed these concerns during the budget expectations. But till not these were not met. The higher taxation on products and solar energy generation often escalates project costs. Many now see this as a major relief. 

Below are the insights shared by industry leaders on the recent GST rate revision-

"The decision by the GST Council to reduce the GST rate on solar components from 12% to 5%  greatly increases the accessibility of solar installations for households, businesses, and farmers across the country. By reducing this financial barrier, the government is making solar power more affordable and enabling faster adoption. We believe this tax break will not only boost energy security and encourage new project pipelines but also contribute meaningfully to India's climate action commitments and its global responsibility to combat climate change."

Gautam Mohanka, Director, Gautam Solar

-------------------------------------------------------------

‘GST Council has taken a historic step to reduce taxes on renewable energy components to 5% from 12%. This move not only brings down the cost of solar and clean energy solutions but also energizes the entire ecosystem—manufacturers, developers, and end users alike. It will also help in India’s clean energy momentum and make sustainable solutions more accessible to millions.’

Dhruv Sharma, CEO, Jupiter International Limited

-------------------------------------------------------------

The reduction from 12% to 5% in GST on solar modules is great news for the industry and a win-win for all stakeholders. Lower costs for consumers are expected to boost demand, drive India’s renewable energy transition, and contribute to achieving the target of 500 GW non-fossil fuel based capacity by 2030. We expect the rooftop solar and corporate markets to be the biggest beneficiaries. The industry is also very happy about the steps taken to reduce the impact of inverted duty structure with measures like provisional refunds.

Vinay Rustagi, Chief Business Officer, Premier Energies

-------------------------------------------------------------

The reduction of GST on renewable energy devices and equipment to a uniform 5% will lower project costs and accelerate the capacity addition needed to meet India’s clean energy targets. It also sends a strong signal to investors, improving the financial viability and attractiveness of the renewable energy sector. Moreover, this development will directly help reduce the overall cost of solar modules. Waaree is committed to passing on these benefits to customers, which will make our products more competitive in the market. While the exact reduction will depend on project specifications and configurations, customers can expect a tangible decrease in module prices, further strengthening the case for solar adoption. The move will also help expand solar adoption in households across the country, supporting the implementation of the PM Surya Ghar Yojana. While the new rate may temporarily increase the issue of inverted taxation, we are confident that the government’s focus on faster Input Tax Credit (ITC) refunds will help address this. Overall, these GST reforms will reduce the cost of green power for consumers, strengthen the domestic manufacturing value chain, create jobs, and promote energy independence.

Amit Paithankar, CEO, Waaree Energies 

-------------------------------------------------------------

"Reducing GST rates on renewable energy components by GST Council is a transformative step for the sector. By lowering the cost of solar parts, it eases barriers for both established developers and emerging players. More importantly, it makes clean energy more accessible while strengthening India’s solar manufacturing ecosystem by channeling demand into domestic supply chains and creating new avenues for employment across the value chain. This move will accelerate job creation, fuel energy independence, and drive long-term sustainable growth for the country.”

Hiten Parekh, President - Global Sales, GREW Solar

-------------------------------------------------------------

The Government’s latest GST announcement is a welcome reform that will significantly benefit the renewable energy sector. As the founder of India’s largest solar component manufacturer, I view this move as a step towards greater transparency, reduced project uncertainties, and improved competitiveness for domestic manufacturing. Such clarity in taxation is not just a fiscal decision, but a strategic enabler for India’s clean energy transition. It will-strengthen our supply chain ecosystem, drive cost efficiency across solar projects and encourage innovation and large-scale adoption of solar technologies

Manjunath Reddy, Founder and MD, DhaSh Group of Companies 

-------------------------------------------------------------

"By lowering the GST on renewable energy devices to 5% and on non-lithium batteries to 18%, this reform makes clean energy and storage solutions more affordable and accessible for households and businesses. This is a powerful move that will not only boost demand and accelerate the adoption of solar energy but also strengthen grid stability and long duration storage for renewable power. We welcome this landmark reform, which aligns with our vision of fulfilling every Indian consumer's evolving energy needs with smart, sustainable and accessible energy solutions.  These measures will also stimulate growth across allied renewable energy industries by job creation, thereby laying a strong foundation for a future-ready India.

Preeti Bajaj, MD & CEO, Luminous Power Technologies 

-------------------------------------------------------------

The reduction of GST on renewable energy equipment from 12% to 5% will significantly improve project cost efficiency, enabling faster deployment of clean power. Lower capital costs will translate into more competitive tariffs in auctions, supporting quicker capacity addition and passing direct benefits to consumers.

Akshay Hiranandani, CEO, Serentica Renewables

-------------------------------------------------------------

“The GST Council’s decision to reduce tax on solar components to 5% is a timely move that strengthens the foundations of India’s energy transition. Lowering project costs will accelerate solar adoption across sectors and bring clean energy closer to millions of homes and businesses. Equally significant is the reduction in tax on non-lithium-ion batteries. As India increases its renewable energy generation, building scalable, long-duration energy storage solutions is critical for grid stability and round-the-clock power.  This set of reforms goes beyond cost correction and reflects strategic intent. It strengthens India’s clean energy value chain and reinforces our position as a global leader in sustainable growth.” 

Gyanesh Chaudhary, Chairman and Managing Director, Vikram Solar

-------------------------------------------------------------

"A landmark decision by the GST Council to reduce the tax on renewable energy equipment — including solar cells, silicon wafers, photovoltaic modules, windmills, and biogas plants — from 12% to 5% marks a critically important step in advancing India’s clean energy transition. This move will lower input costs for project development and module manufacturing, strengthen the economic viability of renewable projects, and make solar power more affordable for households, businesses, and farmers across the country. We see this reform not only as a near-term boost to project viability, but also as a long-term enabler of domestic manufacturing."

Sameer Gupta, Chairman, Jakson Group

-------------------------------------------------------------

The recent revision in GST is a progressive step for the sector. By easing the tax burden on critical components, the government has reinforced its commitment to accelerating India’s clean energy transition. This reform will benefit developers, power producers, and consumers alike by lowering project costs, enhancing viability, and enabling faster adoption across industries and utilities. Importantly, it also strengthens the case for domestic manufacturing, supporting India’s efforts to build a resilient supply chain for critical components. More competitive and higher-yield projects will attract greater investment into the sector, fueling India’s renewable energy ambitions.”

Rajeev Kashyap, SVP and General Manager for India, Middle East, and Africa, Nextracker

-------------------------------------------------------------

“The GST Council’s cut in GST on renewable-energy equipment from 12% to 5% is timely—unlocking EPC capex and lowering the levelised cost of energy amid volatile input and logistics costs. While this deepens the inverted duty structure, the Government has reaffirmed a steadfast refund mechanism with expedited processing, easing working-capital pressures for developers and manufacturers. The signal is clear: promote renewable-energy goods, accelerate execution, and nudge tariffs lower for discoms and, ultimately, consumers.”

Neerav Nanavaty, CEO, BluPine Energy

-------------------------------------------------------------

"The reduction of GST on renewable energy equipment from 12% to 5% is a welcome step that strengthens the foundation of India’s clean energy transition. A simpler and lower tax structure makes renewable energy more affordable, while boosting domestic manufacturing and investor confidence. This reform enhances the sector’s competitiveness and reflects India’s steadfast commitment to its 2030 renewable energy targets and 2070 net-zero vision. More affordable clean technologies will accelerate adoption, strengthen energy independence, and create green jobs—bringing the nation closer to a sustainable future"

Srivatsan Iyer, Global Chief Executive Officer, Hero Future Energies 

-------------------------------------------------------------

“The GST reduction on solar modules and components from 12% to 5% is a big win for homeowners planning to switch to solar. We applaud the government for this progressive step, as lower taxes will make rooftop solar more affordable, shorten payback periods, and boost monthly savings for families. This should accelerate adoption, particularly among middle-income households that were earlier holding back due to high upfront costs. Over the next 6–12 months, we anticipate stronger interest in rooftop solar, reflected in higher enquiries and installations as affordability improves.”

Shreya Mishra, Co-founder, SolarSquare 

-------------------------------------------------------------

“By easing the financial burden on capital-intensive projects, GST rationalisation will improve returns, encourage private participation, and accelerate nationwide adoption. At the same time, clarity and consistency in taxation are vital to sustaining investor confidence and ensuring long-term sectoral stability. Any policy that enhances cost competitiveness for clean energy strengthens India’s ability to meet its Mission 2030 renewable energy targets while driving industrial growth."

Simarpreet Singh, Executive Director and CEO, Hartek Group

-------------------------------------------------------------

The GST Council’s reforms signal a strong commitment to streamlining the indirect tax regime and boosting economic clarity. A simplified two-slab structure provides much-needed predictability for businesses, especially in the clean energy sector, where long-term planning is crucial. These changes are not just about taxation but they pave the way for faster adoption of sustainable technologies by reducing friction in compliance and investment. As the country accelerates toward its renewable energy goals, a stable, transparent GST framework will play a vital role in supporting innovation, growth, and a greener, more resilient economy."

Akshat Jain, CEO, KLK Ventures

-------------------------------------------------------------

"The reduction of GST on renewable energy equipment from 12% to 5% is a timely and much-needed boost. Lowering project costs directly improves affordability for developers and consumers, accelerating India’s clean energy transition. It’s a clear signal of the government’s commitment to making renewable energy mainstream, and we believe it will unlock fresh momentum for solar adoption across the country.” said Divya Prakash Choraria, CEO and Co-founder of WattPower.

Divya Prakash Choraria, CEO and Co-founder of Wattpower.
-------------------------------------------------------------

The GST Council’s decision to reduce the GST rate on renewable energy equipment to 5% marks a significant step forward in India’s clean energy journey. This progressive move will not only encourage renewable energy players in India by strengthening liquidity across the renewable value chain but also fast-track the execution of green projects. This decision will also potentially help in attracting greater investments in clean technologies and bolster India’s competitiveness in renewable energy and reinforce the country’s leadership in the global energy transition.

Amit Jain, CEO & Country Manager India, MD Renewables & Batteries India & South-East Asia.

-------------------------------------------------------------

The rationalization of GST rates on automotive vehicles and parts is a truly welcome and significant development. By making vehicles more affordable across all segments, this move will not only boost consumer spending but also simplify complex classification disputes that have long burdened the industry. The discontinuance of the cess is a particularly pragmatic step, which will provide much-needed support to a sector that is a vital contributor to our nation's GDP.

Saurabh Agarwal, Partner & Automotive Tax Leader, EY India

-------------------------------------------------------------

"The GST Council's decision to reduce the tax rate on renewable energy components- including solar cells, windmill equipment, and biogas plants- to 5% represents a critical step forward for India's clean energy transition. As a hybrid IPP player committed to accelerating the adoption of renewable power, this move significantly lowers the input costs for project development and module manufacturing, thereby enhancing the overall economics of renewable energy projects. Moreover, addressing the inverted duty structure with expedited refund mechanisms will streamline liquidity for manufacturers and developers, easing cash flow allowing faster capacity expansion." 

Siddharth Bhatia, MD, Oyster Renewable Energy 

-------------------------------------------------------------

In a landmark move, the GST Council has announced a significant reduction in GST rates across key sectors — a decision set to boost consumption, support MSMEs, and energize the Indian economy. From reducing rates on essential goods to simplifying compliance for small businesses, this step marks a pivotal shift toward making India a more business-friendly and consumer-centric market.

Niket Shah, Director, Aatmanirbhar Solar 

-------------------------------------------------------------

The continuation of the 5% GST rate on electric vehicles is a positive step in maintaining affordability and supporting demand in the segment. As the sector grows, there is increasing relevance in exploring GST rationalisation for the broader EV ecosystem including batteries, charging infrastructure, and battery swapping services. A uniform tax structure across these components could help reduce operational inefficiencies, streamline costs, and improve accessibility for both manufacturers and consumers.

Pratik Kamdar, Co-founder & CEO, Neuron Energy

-------------------------------------------------------------

“The Indian government’s decision to cut GST on solar products from 12% to 5% is a welcome move to make clean energy more affordable, particularly for domestic consumers not registered under GST. This reduction eases the financial burden on households, supports the PM Surya Ghar Yojana, and is expected to accelerate solar adoption. The renewable energy sector has widely welcomed this step as a strong push toward India’s sustainability goals."

Vipin Tiwari, Corporate Strategy Manager, AXITEC Energy India 

-------------------------------------------------------------

"The decision to rationalize the GST structure by reducing the GST rate on renewable energy equipment from 18% to 5% is a commendable step by the Government of India. This measure is expected to substantially lower production costs and improve the commercial viability of renewable projects, thereby promoting greater adoption and market expansion across the sector. The government’s continued focus on promoting domestic manufacturing and nurturing a robust renewable energy ecosystem is evident through such measures.

For the renewable energy sector, this revision is expected to bring down costs across the value chain, making technologies more accessible and affordable for both consumers and businesses. This will further catalyze faster adoption, attract new investments, job creation, and significantly boost India’s renewable energy capacity. We thank the government and welcome this policy change that will go a long way in this journey of energy transition of the nation."

Laxit Awla, Director & CEO (Power Business), SAEL Industries Limited