New Delhi: In a major victory for India’s clean energy ambitions, the government has slashed the Goods and Services Tax (GST) on renewable energy devices from 12% to 5%. The landmark decision, which applies to solar, wind, bio-energy, and ocean power equipment, is hailed as a pivotal step towards making clean energy more accessible and affordable for all.
The move is expected to significantly reduce the cost of renewable energy projects, leading to lower power tariffs for consumers and a faster pace of adoption across homes, farms, and industries. This reform is seen as a powerful catalyst for strengthening India’s energy self-reliance and achieving its ambitious climate goals.
While official statements from the Ministry of New and Renewable Energy (MNRE) are pending, the decision is a clear reflection of the government’s commitment to the sector. MNRE Secretary Shri Santosh Sarangi has consistently advocated for a robust ecosystem to drive the clean energy transition. In recent discussions and meetings, he has highlighted the government’s focus on policy reforms, institutional capacity building, and resolving on-ground challenges to accelerate renewable energy deployment.
Industry insiders and policy experts have welcomed the GST reduction as a long-awaited and crucial measure. The move is not only expected to boost domestic manufacturing under the “Make in India” initiative but also attract greater investment and innovation in the sector.
The GST cut aligns with India’s national pledge to achieve a 500 GW non-fossil fuel-based energy capacity by 2030, a target that requires aggressive policy support and a favorable economic environment. This latest reform is a testament to the government’s proactive approach in steering the nation towards a sustainable and secure energy future.