GST cut to save investors up to Rs. 1,50,000 crore (US$ 16.99 billion) in renewable sector: Union Minister for New and Renewable Energy, Mr. Pralhad Joshi
- IBEF
- September 23, 2025
Union Minister for New and Renewable Energy Mr. Pralhad Joshi said on September 22, 2025, that the reduction in Goods and Services Tax (GST) on renewable energy equipment from 18% to 5% will save investors up to Rs. 1,50,000 crore (US$ 16.99 billion) by 2030. Effective September 22, 2025, the first day of Navratri, the GST cut is expected to accelerate India’s renewable energy growth and support the country’s target of 500 GW non-fossil fuel capacity by 2030. With India planning to add around 300 GW of renewable capacity, even a modest 2-3% cost reduction could free up Rs. 11,50,000 crore (US$ 130.25 billion) in investment potential. Rooftop solar under the PM Surya Ghar: Muft Bijli Yojana will become cheaper by Rs. 9,000-10,500 (US$ 101.93-118.92) per three kW system, while farmers under PM Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) are expected to save Rs. 1,750 crore (US$ 198.21 million) on 10 lakh solar pumps.
Speaking at the Confederation of Indian Industry (CII) sixth International Energy Conference, he recalled Prime Minister Mr. Narendra Modi’s Conference of the Parties (COP26) announcement of achieving 500 GW non-fossil fuel capacity by 2030. India has already reached over 50% of its installed power capacity from non-fossil fuel sources, five years ahead of schedule. Nearly 20 lakh homes have benefited from solar under PM Surya Ghar. A recent clean energy auction in Madhya Pradesh delivered the country’s lowest-ever tariff for solar with storage at Rs. 2.70 (US$ 0.031) per unit. The transmission system is being planned for approximately 537 GW of renewable energy capacity by 2030, further strengthening India’s position as a global leader in clean energy.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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