The reduction of GST on renewable energy equipment represents a transformative policy shift that will accelerate India’s clean energy transition. By lowering taxes from 13.8% to 8.9%, this reform reduces solar system ownership costs by 5% – translating to meaningful savings of approximately ₹10,000 for homeowners installing a typical 3 kW system.

The impact extends beyond individual consumers. While businesses can claim tax credits, the reduced cash outflow still creates significant value, improving project economics and encouraging faster adoption. More importantly, this policy gives Indian manufacturers a decisive competitive edge, making locally-produced solar modules and components 3–4% more cost-effective than imports.

This manufacturing advantage is particularly crucial as India targets 100 GW of solar manufacturing capacity by 2030. The GST reduction could catalyse the creation of 5–7 lakh new green jobs over the next decade, directly supporting both our energy security and employment goals.

By simultaneously making solar more affordable for consumers and strengthening domestic manufacturing, this reform creates a powerful dual engine for India’s clean energy ambitions – positioning us for a more self-reliant and sustainable economic future.

Saurabh Marda, Co-Founder and Managing Director, Freyr Energy