GST Cuts on Solar Panels: Big Support for Green Energy

by | Sep 4, 2025 | News | 0 comments

Here is some exciting news if you’ve been thinking about switching to green energy. The 56th meeting of the GST Council was held in New Delhi under the chairpersonship of Union Finance and Corporate Affairs Minister Nirmala Sitharaman

The meeting focused on giving relief to the common people, the middle class, and also making trade under GST easier.

In this, one of the biggest decisions was reducing GST on renewable energy devices from 12% to just 5%. This will make green energy equipment more affordable and encourage people to adopt this.

The list of devices that will now attract only 5% GST includes:

  • Biogas plants
  • Solar power-based devices and generators
  • Windmills and wind-operated electricity generators (WOEG)
  • Waste-to-energy plants/devices
  • Solar lanterns and lamps
  • Ocean wave/tidal energy devices/plants
  • Photovoltaic (PV) cells, whether assembled in modules or panels
  • Solar water heaters and systems, earlier taxed at 12%, are now brought down to 5%.

This cut in GST will make things like solar panels, biogas systems, windmills, and other renewable energy products cheaper. That means more households and businesses can afford them.

Finance Minister Nirmala Sitharaman also said that the government will release FAQs soon to clear any confusion about the new GST rates.

The GST Council announced that the new GST rates on services will come into effect from 22nd September 2025.

With these steps, the government wants to boost the renewable energy sector, help people use eco-friendly products in their daily lives, and, at the same time, give some relief to the middle class.

Source

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2163555

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