The Goods and Services Tax (GST) Council, in its 56th meeting held yesterday, announced a major relief for the renewable energy sector by reducing the GST on solar panels and related equipment from 12% to 5%.
This decision will come into effect from September 22, 2025, and is expected to significantly lower the overall cost of rooftop solar installations across India.
Solar panel
According to industry experts, the 7% tax reduction could increase demand for solar rooftop systems, making solar energy more affordable for both households and businesses.
With additional government subsidies, homeowners will now have a strong financial incentive to switch to clean energy.
Union Finance Minister Nirmala Sitharaman said:
“Our goal is to promote green energy adoption and make solar power accessible to every home and business. This GST cut will accelerate investments in the renewable energy sector and create new employment opportunities.”
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