With the new GST rate cut coming into play from September 22, 2025, the Ministry of New and Renewable Energy has highlighted that the rationalization of GST rates across the renewable energy value chain from 12 per cent to 5 per cent will make electricity more affordable. It mentioned that the new rates will bring down the cost of clean energy projects, making electricity more affordable and directly benefiting households, farmers, industries, and developers. For instance, the capital cost of a utility-scale solar project, which typically amounts to around INR 3.5 to 4 crore per MW, will now see savings of INR 20 to 25 lakh per MW. At the scale of a 500 MW solar park, this translates into project cost reductions of over INR 100 crore, significantly improving tariff competitiveness.

Source: https://www.thestatesman.com/