GST Reduced on Solar Plant in India: Huge Savings for Homeowners
India is shining brighter than ever under the solar revolution. From residential rooftops to industrial sheds, solar panels are lighting up homes, powering businesses, and cutting electricity bills nationwide. Now, with the GST reduced on solar plant installations, this clean energy movement has received a major boost.
This tax reduction is not just a policy change — it’s a big win for homeowners and businesses who’ve been planning to go solar but were concerned about high installation costs. Let’s break down what this means for you and how it can maximize your savings.
What Does the GST Reduction Mean?
Earlier, solar components such as panels, inverters, and batteries were taxed at 12% to 18% GST, which significantly increased the total project cost. But now, with the GST reduced on solar plant components, the financial burden on consumers has eased.
This means when you install a rooftop solar system, your upfront cost will be lower. For example, if a 5kW solar plant earlier cost ₹3,00,000 including taxes, the new GST rate could save you around ₹15,000–₹25,000 on installation — that’s real money back in your pocket!
With this lower GST rate, India takes another step toward making renewable energy more affordable and accessible to everyone.
Read more: 3kW Solar Panel Price in India with Subsidy
Why It’s the Best Time to Go Solar
The combination of reduced GST and government subsidies has made solar power more cost-effective than ever before. Under the PM Surya Ghar Muft Bijli Yojana, homeowners can now receive up to ₹78,000 in central financial assistance for rooftop solar installations up to 10kW capacity.
For instance, if you install a 5kW solar system, you can save around ₹1,08,000 through the subsidy and an additional ₹20,000 from the GST reduction. That’s nearly ₹1.3 lakh saved upfront — making your return on investment even faster.
Moreover, with the cost of electricity continuing to rise, investing in solar today means locking in free power for the next 20–25 years.
Benefits Beyond Cost Savings
The GST cut on solar plants is not just an economic benefit; it’s a sustainability milestone. By making solar more affordable, more families will be encouraged to switch to renewable energy. This, in turn, reduces carbon emissions and helps India move closer to its Net Zero by 2070 goal.
Additionally, the growing demand for solar installations is creating thousands of green jobs — from local installers to engineers and maintenance technicians — boosting both the environment and the economy.
Why Choose Thermosun Solar
At Thermosun Engineering & Power India Pvt. Ltd., we make switching to solar simple and hassle-free. From system design and subsidy documentation to installation and maintenance, we handle everything for you.
With our MNRE-approved panels, experienced installation teams, and transparent pricing, we ensure you get maximum value from your investment.
Now is the perfect time to go solar — lower GST, government subsidies, and lifetime savings make it a win-win decision.
Check the official subsidy details here: PM Surya Ghar Muft Bijli Yojana