By Gautam Mohanka, Director, Gautam Solar
The decision by the GST Council to reduce the GST rate on solar components from 12% to 5% marks a pivotal step in accelerating India’s clean-energy transition. This significant reform greatly increases the accessibility of solar installations for households, businesses, and farmers across the country.
At a time when India and the world are facing extreme weather events, rising temperatures, and erratic climate patterns, the need to decarbonize our energy systems is urgent. By reducing this financial barrier, the government is making solar power more affordable and enabling faster adoption, which will directly help cut carbon emissions and reduce dependence on fossil fuels.
We believe this tax break will not only boost energy security and encourage new project pipelines but also contribute meaningfully to India’s climate action commitments and its global responsibility to combat climate change. I commend the Council’s vision and urge swift implementation so that the industry can leverage this momentum for a greener, more climate-resilient future.
