The GST on solar and wind equipment has been lowered to 5%, reducing project costs.
India’s government reduced the GST on solar photovoltaic modules and wind turbine generators from 12% to 5%, effective 3 September 2025.
The move is part of broader tax cuts on consumer items and aims to lower project costs for renewable energy.
Industry experts suggest that the tax reduction could lower capital costs for solar and wind projects by approximately 5%, allowing developers to offer more competitive tariffs and support India’s goal of achieving 500 GW of non-fossil fuel capacity by 2030.
Developers who have not yet procured equipment are likely to pass the savings to consumers, while projects that already paid the higher GST can maintain existing agreements with proper documentation. Solar equipment maker Waaree Energies confirmed it will pass the benefits to customers.
