India slaps 18% tax on solar cells and modules

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Union minister for power, coal, new & renewable energy and mines, Piyush Goyal.

India has proposed an 18% sales tax for solar cells and modules.

The country is establishing a national Goods and Services Tax (GST) with the rates for different sectors and products announced on Friday.

There is still scope for changes to the rates before they are set in stone. Solar cells and modules will be levied at 18% with coal seeing an additional 5% charge. Indian tenders at national and state level have secured a number of record low bids in recent months.

Despite the increase, Union minister for power, coal, new & renewable energy and mines, Piyush Goyal, told a press conference that higher tax rate would not slow down the growth of solar.

When questioned on the prospects of such competitively priced projects Goyal said: “Tariffs for solar projects vary from project to project. The rise will be compensated by the decline in corruption and operational difficulties. The prices of solar and wind energy have hit a record low and the industry is now able to stand on its own feet,” he added.

A study by the Council on Energy, Environment and Water (CEEW) predicted that the GST could add 9.5% to the cost per kWh of production in India

Read Next

July 30, 2021
First Solar has unveiled plans to construct a 3.3GWdc module assembly facility in India, bolstering its manufacturing footprint outside of the US.
July 20, 2021
It is “unhealthy” for China to dominate solar manufacturing and production bases outside of the country are necessary to reduce the risk of supply chain disruptions, an Indian government official has said.
July 20, 2021
Vikram Solar has completed a new 1.3GW solar module manufacturing facility in Tamil Nadu, India, taking its total manufacturing output to 2.5GW.
July 19, 2021
Investors are turning away from fossil fuels and shifting into renewables because of falling costs and climate targets, with US banks lagging behind their European and Asian counterparts
PV Tech Premium
July 15, 2021
Earlier this week the US National Renewable Energy Laboratory (NREL) published its 2021 Annual Technology Baseline (ATB) document, detailing the continued reduction in the levelised cost of electricity (LCOE) of the country’s core generators. Liam Stoker takes a look at the data and discusses just how cheap solar, and solar-storage, could become.
July 13, 2021
Solar PV capacity in Asia Pacific could triple to 1,500GW by 2030, with China driving deployment and Indonesia set to be the region’s fastest-growing market, according to Wood Mackenzie.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK