India Cuts GST on Solar and Wind Gear to Boost Renewable Energy

India has reduced the goods and services tax (GST) on solar photovoltaic modules and wind turbine generators from 12% to 5%, a move expected to cut capital costs of renewable projects by about 5%. Experts say this will lower tariffs for new plants and make clean energy more competitive against fossil fuels, helping accelerate the country’s energy transition. Industry leaders note the change could revive stalled projects and attract utilities with more affordable tariffs. However, projects awarded before the tax cut may face short-term challenges, as developers and utilities may need to renegotiate existing contracts to reflect the new cost structure. Despite these complexities, the move is widely viewed as a positive step toward India’s goal of installing 500 GW of non-fossil fuel capacity by 2030. Developers, equipment makers, and consumers are all expected to benefit, with companies like Waaree Energies pledging to pass on the tax savings directly to customers.