look news india
New Delhi: As the adoption of green energy accelerates in India, the power sector is hoping for more policy support and tax benefits from the upcoming Union Budget. Executives of companies involved in the sector are expecting changes in GST rates and financial support for projects in renewable energy supply chains and other new areas such as green hydrogen, offshore wind and energy storage.
Sources in companies involved in the sector said the green energy industry is hoping for a reduction in GST rates on renewable energy components. Reducing the current GST rate on solar modules, wind turbines and electrolysers to five per cent will reduce the cost of projects and reduce the cost of renewable energy and hydrogen for consumers across the country.
Reduction in customs duty on solar cells and modules and green hydrogen related projects will increase the economic viability of solar projects. The government should also consider removing the requirement to buy model and manufacturer list approved solar modules, especially for the commercial and industrial sector. Since the capacity of companies with government approved model and manufacturer list is low and there is no direct subsidy, the government should relax this requirement in India and encourage production of key components of modules and cells in the budget.
For this, sustainable policy, regulatory, financial and tax systems should be promoted. India has a strong history of home appliance manufacturing, yet our dependence on renewable energy manufacturing machinery and equipment is almost 100 percent. New areas of clean energy have developed in recent years.
These include fuels such as green hydrogen, plant-based biofuels and green storage. Energy sector experts say initial subsidy support and tax exemptions on imported goods will be needed to help the domestic industry grow rapidly.