GST cut to save up to Rs 1.5 lakh crore for renewable energy investors: Pralhad Joshi

India has already achieved over 50% of its installed power capacity from non-fossil fuel sources, five years ahead of schedule, underscoring the rapid progress toward the 500 GW renewable energy target.

New Delhi: Union Minister for New and Renewable Energy Pralhad Joshi on Monday said that the GST reduction on renewable energy equipment will save investors up to Rs 1.5 lakh crore by 2030.

“I thank Prime Minister Narendra Modi for cutting GST on renewable energy equipment from 18 per cent to 5 per cent, especially on the occasion of the Navratri festival. This move will save Rs 1–1.5 lakh crore for investors till 2030,” Joshi told media on the sidelines of the CII 6th International Energy Conference.

The GST cut is expected to give a significant boost to India’s ambitious target of achieving 500 GW of renewable energy by 2030.

According to the Ministry of New and Renewable Energy, given that India plans to add around 300 GW of renewable energy capacity by 2030, even a modest 2–3 per cent reduction in costs could free up Rs 1–1.5 lakh crore in investment capacity.

Earlier at the conference, Joshi highlighted that Prime Minister Modi has set a target of 500 GW of non-fossil fuel capacity by 2030.

“We have already achieved over 50 per cent of our installed power capacity from non-fossil fuel sources, five years ahead of schedule. We have also crossed 50 per cent of the 500 GW target, with 252 GW installed,” he said.

He further pointed out that in a recent clean energy auction, Madhya Pradesh secured India’s lowest-ever price for solar power with battery storage at just Rs 2.70 per unit.

Joshi also outlined the government’s push for domestic solar manufacturing, noting a target to achieve domestically-produced solar cells by 2028. “We are now moving towards a comprehensive indigenous wafers and ingots ecosystem (Swadeshi),” he said.

He added, “I have given my Ministry clear directions to develop a trajectory for domestic polysilicon production, ensuring a completely integrated solar value chain from the ground up. We are also discussing a PLI scheme for advanced chemistry cells, and I have asked officials to prepare an ALMM (Approved List of Models and Manufacturers) for solar inverters.”

The transmission system has been planned to accommodate about 537 GW of renewable energy capacity by 2030.

The Ministry is also implementing training initiatives such as the Suryamitra Skill Development Programme to equip youth with renewable energy expertise. Other programmes include Varunmitra for solar water pump technicians, Vayumitra for wind energy, and Jal-Urjamitra for small hydropower projects.

Joshi emphasised that this holistic approach is critical, as the renewable energy sector employs over 13 lakh full-time workers across solar, wind, biomass, and hydro segments.

He added, “We are supporting domestic manufacturing of electrolysers and components for green hydrogen. Incentives have already been awarded for over 3,000 MW per annum of electrolyser manufacturing and 8.62 MTPA of green hydrogen production.”