Solar panel will be cheaper
The government has reduced the tax imposed on solar panels and other solar products. Now these will be charged only 5% GST, whereas earlier 12% tax had to be paid. These new tax rates will be applicable from 22 September 2025. This decision will reduce the cost of installing solar systems and common people will be able to buy them easily. This can also provide relief from heavy electricity bills. The government wants more and more people move towards clean means like solar and wind energy.
Now not only solar panels, but many other environmentally friendly products will also be cheap. These include solar cooker, solar lantern, solar water heater, photovoltaic cell and solar power generator. Apart from this, Pawan Chakkians (wind mill), vest -making plants, sea wave -making equipment and hydrogen fuel cell -driven vehicles will also be available in 5% tax. Earlier, 12% tax had to be paid on all these, which increased the price. Now due to reduced tax, prices will fall and people will get direct benefit.
Suppose you are installing a solar system of ₹ 80,000. Earlier, you had to pay ₹ 9,600 tax on 12%. Meaning total cost was ₹ 89,600. Now that the GST has come down to 5%, the same system will now be charged only ₹ 4,000 and the total cost will be ₹ 84,000. In this way you can have a direct savings of ₹ 5,600. But this will happen only when companies give you full advantage of tax deduction.
Although customers have been relieved, a problem for companies still remains. The raw material that comes to create solar systems, is still taxed on it. When there is less tax on the finished goods and more tax on raw, it is called inverted duty structure. Due to this, the money of companies remains stuck with the government. The government has admitted that this problem may go ahead. But he has said that the refund system for this is already and now it will be made faster, so that the money of the companies can return soon.
The government has also made the GST structure easier. Earlier, there were four types of tax slabs on the goods 5%, 12%, 18%and 28%. Now only two slabs will be 5% and 18%. Due to this, everyday things like butter, ghee, soap, shampoo, TV and fridge can also be cheap. For expensive goods and luxury things, 40% tax slab will be separate. Middle class and common houses are expected to get relief from this change.
This step of the government is not just to reduce tax, but is a big attempt to provide relief to every house from electricity bill and promote clean energy. If the companies reach the customers' full advantage of the tax cuts, then in the coming time, getting solar system will not be limited to cities, but people in the village and countryside will be able to take advantage of it.
