Overview

• The GST rate on renewable-energy goods falls from 12% to 5% effective September 22, with the ministry releasing itemized savings across the value chain.
• For homes, a typical 3 kW rooftop solar system is expected to cost about Rs 9,000–10,500 less, supporting faster uptake under PM Surya Ghar.
• For farmers, a 5 HP solar pump would be cheaper by roughly Rs 17,500, implying about Rs 1,750 crore in collective savings at a deployment of 10 lakh pumps under PM-KUSUM.
• For utility-scale projects, MNRE estimates savings of Rs 20–25 lakh per MW and over Rs 100 crore on a 500 MW park, with lower levelised tariffs projected to ease DISCOM procurement costs by Rs 2,000–3,000 crore annually.
• Lower input taxes are projected to reduce module and component costs by 3–4%, strengthening domestic manufacturing competitiveness and potentially supporting 5–7 lakh jobs over the next decade.