New Delhi, September 17 (HS): The Ministry of New and Renewable Energy on Wednesday announced that rationalization of Goods and Services Tax (GST) rates will accelerate India’s clean energy transition and generate massive cost savings. According to official estimates, the move could lead to savings of up to ₹1.5 lakh crore as the country adds 300 GW of renewable capacity by 2030. The revised GST rates will come into effect from September 22, 2025.
The ministry said that lowering GST rates across the renewable energy value chain—from 12% to 5%—would significantly reduce project costs, thereby making electricity cheaper for households, farmers, industries, and developers. The reform is also expected to create 5–7 lakh direct and indirect jobs over the next decade, strengthening India’s clean energy ecosystem.
Cheaper Rooftop Solar, Solar Pumps, and Components
-Under PM-Surya Ghar: Free Electricity Scheme, a 3 kW rooftop solar system will become ₹9,000–₹10,500 cheaper.
-Under PM-KUSUM, farmers will save ₹1,750 crore on 10 lakh solar pumps due to lower GST.
-Module and component costs are set to decline by 3-4%, boosting renewable equipment manufacturing.
Vital Push for 500 GW Renewable Target
India has set an ambitious target of achieving 500 GW renewable energy capacity by 2030. As of August 31, 2025, renewable capacity (excluding large hydro) stood at 193 GW, comprising 123 GW solar power and nearly 53 GW wind energy.
Officials said the landmark decision will directly benefit millions of consumers, farmers, developers, and manufacturers, while contributing to dual goals of green growth and energy independence.
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Hindusthan Samachar / Jun Sarkar
