India’s renewable energy sector is booming with the latest GST reforms, effective September 22, 2025. The GST Council has slashed rates from 12% to 5% on key components like biogas plants, solar panels, and EPC supplies, boosting affordability and adoption. This aligns with the 2025 Union Budget’s green push, potentially saving ₹1.5 lakh crore by 2030. For businesses exploring biogas or solar EPC, these changes mean lower costs and faster ROI—perfect for waste-to-energy and clean power projects.
GST Cuts for Biogas Plants: Fueling Waste-to-Energy
Biogas systems now attract just 5% GST, down from 12%, making them cheaper to install.
Savings Impact: Up to 4-5% reduction in project costs, with ₹50,000+ savings on a 1-tonne plant.
Key Benefits: Enhances viability for agriculture and food sectors, promoting CBG from organic waste.
Who Benefits: Entrepreneurs in Gujarat or rural India scaling decentralized energy.
Solar Plants and Panels: Brighter Affordability
Solar equipment, including panels and inverters, falls under 5% GST when bundled.
Cost Reductions: ₹9,000-₹15,000 savings on a 3kW system; ₹20-25 lakh per MW for large parks.
Broader Wins: Lowers tariffs by ₹0.10/unit, supporting schemes like PM Surya Ghar.
Market Boost: Reduces import reliance, fostering local manufacturing in high-sun states.
EPC Projects: Streamlined for Growth
Unified 5% GST on composite EPC supplies eliminates the old 13.8% effective rate.
Financial Edge: 5% capex drop, enabling ₹100 crore+ savings on 500MW projects.
Strategic Perks: Encourages hybrid solar-biogas models and job creation.
Implementation Tip: Partner with compliant suppliers for seamless compliance.
In conclusion, these GST reforms catalyze India’s clean energy transition, making biogas plants, solar systems, and EPC projects more accessible. At Earthtech Renewables, we’re ready to help you leverage them—contact us for optimized solutions. Stay tuned for more insights!