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New Delhi. The Government of India has taken a historic decision to make the country self-reliant in the field of solar energy. GST Council has reduced the GST on solar equipment from 12% to only 5%. This new rule has become effective from 22 September 2025, whose direct impact is now visible on the solar market in 2026. Due to this reduction, there has been a huge fall in the prices of solar panels, inverters and batteries, making it easier for middle class families to get rid of electricity bills.
Why was this big decision taken?
The government aims to achieve the target of 500 gigawatt renewable energy by the year 2030.
Self-reliant India: Tax cuts will boost domestic solar manufacturing and reduce dependence on imports from foreign countries (especially China).
Relief in electricity bill: People who were hesitant in installing solar due to high prices, will now be able to install a power plant on their rooftop with less investment.
Environmental Protection: Bringing solar energy to every home is essential to reduce carbon emissions and fight global warming.
Solar systems become cheaper: How much will be your savings now?
The 7% reduction in GST and the subsidy of ‘PM Surya Ghar: Free Electricity Scheme’ together are reducing the cost of solar installation to half. Let us understand the mathematics of the new prices:
| System Capacity (kW) | Old price (12% GST) | New price (5% GST) | Direct Savings (Approx.) |
|---|---|---|---|
| 1 kilowatt (1kW) | ₹70,000 | ₹65,000 | ₹5,000 |
| 3 kilowatt (3kW) | ₹2,15,000 | ₹1,95,000 | ₹20,000 |
| 5 Kilowatt (5kW) | ₹3,40,000 | ₹3,15,000 | ₹25,000 |
Dhamaka Offer: If you install a 3 kilowatt system, then the central government will Subsidy up to ₹78,000 Comes directly into your account. That means after GST deduction and subsidy, a 3kW system may cost you around ₹ 1.20 lakh.
Who will get the most benefit?
Domestic Consumer: Those who are troubled with electricity bills ranging from ₹ 2,000 to ₹ 5,000 per month.
Farmer: The cost of farming can be reduced to zero through solar pumps and rooftop systems.
Small Businessmen: Shopkeepers, workshops and small factories can reduce production costs by generating their own electricity.
green minded: People who want to contribute to reducing pollution.
Get it installed now and forget about electricity bills for 25 years.
Going solar in 2026 is not an investment, but a guaranteed savings. Solar panel lifespan typically 25 years Which means a one-time investment will give you free electricity for the next two and a half decades.
how to apply?
Interested Citizens Official Portal of Government pmsuryaghar.gov.in You can register by visiting. Here you can calculate the subsidy as per the capacity of your roof and get solar installed from an authorized vendor.
