Big News for Solar in 2025: GST Cut to 5% – What It Means for You

Great news for anyone planning to install solar in 2025! The government has officially

reduced GST on solar panels, inverters, and installations to just 5%. Earlier, the rate was 13.8%, which made many homeowners feel that solar was becoming expensive. With this tax cut, the dream of affordable solar power just got a huge boost.

📌 What is the New GST on Solar in 2025?

As per the latest update, solar energy equipment now falls under the 5% GST slab. This includes:

• ✅ Solar Panels (Modules) – 5% GST

• ✅ Solar Inverters – 5% GST

• ✅ Complete Rooftop System Installation – 5% GST

This tax reduction makes solar more affordable than ever before.

📊 Example: Savings on a 5 kW Rooftop System

Earlier (with 13.8% GST):

• Base Price: ₹2,25,000

• GST (13.8%): ₹31,050

• Total: ₹2,56,050

Now (with 5% GST):

• Base Price: ₹2,25,000

• GST (5%): ₹11,250

• Total: ₹2,36,250

👉 That’s a direct saving of ₹19,800 just because of the lower GST rate!

💡 Combine GST Cut with Subsidy = Big Win

Under the PM Surya Ghar Muft Bijli Yojana, you still get attractive subsidies in 2025:

• Up to 2 kW → ₹30,000 subsidy

• 3 kW system → ₹60,000 subsidy

• 4 kW & above → ₹78,000 subsidy

So, for a 5 kW system:

• System Cost (with 5% GST): ₹2,36,250

• Subsidy: ₹78,000

• Net Payable: ₹1,58,250

👉 That means your solar system is nearly ₹20,000 cheaper compared to the old GST slab!

⚡ Why This Move is a Game-Changer

1. Faster ROI – Your payback period is now 2.5 to 3 years instead of 3-4 years.

2. More Affordable Solar – Middle-class families can now go solar without feeling the burden of taxes.

3. Boost for Businesses – Commercial users already enjoy input tax credit (ITC). With only 5% GST, their upfront costs drop significantly.

4. Push for Renewable Energy – This policy shift supports India’s 500 GW renewable energy target by 2030.

✅ Final Thoughts

The GST cut to 5% is a massive benefit for anyone thinking about solar. Combined with subsidies and rising electricity tariffs, solar is not just a green choice—it’s the smartest financial investment of 2025.

At Shyvon Power, we’re committed to helping you take full advantage of this opportunity. From subsidy guidance to quick installations, we ensure your switch to solar is smooth, affordable, and profitable.

🔆 Ready to go solar at 5% GST?Contact Shyvon Power today for a free consultation and see how much you can save!