GST cut brings sunrise moment for rooftop solar system dealers in Karnataka

Bengaluru: The slash in Goods and Services Tax (GST) on renewable energy products and their parts from 12 per cent to 5 per cent has increased the interest among citizens to install solar panels in their residences and office spaces.

Multiple vendors and suppliers told DH that over the last few days, the queries have increased by at least 10 per cent and they have seen a slight increase in bookings as well.

“Many new customers have been asking us about prices. Enquiries have gone up by at least 10 per cent as interest among people has increased owing to GST cut,” said K L H Raya from the Karnataka Renewable Energy Systems Manufacturers Association (KRESMA).

Yet another vendor, who is working with customers who had opted for the PM Surya Ghar Yojana, said many had put their plans on hold after the GST slash was announced.

“In fact, many of them who had enquired with us earlier had said that they wanted to wait for the GST slash to be implemented and came back only later. There are many new customers also,” said a vendor who did not want to be named.

Under PM Surya Ghar Yojana, the central government has announced a subsidy of up to Rs 78,000 on installation of rooftop solar panels only in residences.

“The Surya Ghar Yojana itself had triggered interest among many of us. The GST slash has added to it. Many of them think that vendors might adjust the prices in the long run and they might miss the advantage. Hence, they want to get the solar panels installed at the earliest,” said Vinod K, a resident of Yelahanka.

While the Surya Ghar Yojana had triggered interest among common people to instal solar panels, the GST slash has now attracted many industrialists and commercial space owners, vendors said.

“For a 5kW installation, charges may be up to Rs 2.8 lakh to Rs 3 lakh. This is a huge investment for any industry or commercial establishment. For bigger establishments, the cost increases even further. The cut in GST has encouraged many to take to green energy,” said a vendor who got at least two such orders over the last week.

According to an estimate, for a 5kW installation, the cost could come down by Rs 13,000 to Rs 15,000.