SIA Engineering, India’s #1 solar EPC contractor, is at the forefront of this landmark GST reform. On September 3, 2025, the GST Council slashed tax on all solar equipment from 12% to 5%, effective September 22, 2025.
This change meaningfully reduces upfront costs for homeowners and businesses in Noida and Greater Noida, making clean energy more accessible than ever.
Solar Panel Installation Cost in Noida 2025: GST in Solar Panel
Explore how a 5 kW system’s total cost falls by over ₹23,100 due to the GST cut.
5% GST Impact on Rooftop Solar in Greater Noida
Understand the direct savings per component, from panels to mounting hardware.
GST on Solar Panels India 2025
Learn why the new 5% slab accelerates India’s clean energy goals.
1. Why the GST Cut Is a Game-Changer
1.1 Lower Capital Expenditure (CapEx)
Prior to the reform, rooftop systems attracted 12% GST on all components. Now, you save 7 percentage points on:
- Solar PV panels & modules
- Inverters & mounting structures
- Balance-of-system components
- Solar water heaters & ancillary devices
1.2 Accelerated Payback Period
- Pre-GST Payback: 4–5 years
- Post-GST Payback: 3–4 years
Recover your investment one year sooner, unlocking ₹30,000–₹40,000 extra savings over 25 years.
2. Detailed Cost Breakdown: GST in Solar Panel
| Component | Base Cost (₹) | Old GST 12% (₹) | New GST 5% (₹) | Savings (₹) |
| Solar Panels & Modules | 200,000 | 24,000 | 10,000 | 14,000 |
| Inverter & Mounting Hardware | 80,000 | 9,600 | 4,000 | 5,600 |
| Wiring & BOS | 50,000 | 6,000 | 2,500 | 3,500 |
| Total | 330,000 | 39,600 | 16,500 | 23,100 |
3. Real-World Examples
Residential Case Study: Greater Noida Villa
- System Size: 5 kW
- Base CapEx: ₹330,000
- Monthly Savings: ₹5,200
- New Payback: 4.5 years
Commercial Case Study: Noida Warehouse
- System Size: 25 kW
- Base CapEx: ₹1,650,000
- Old GST 12%: ₹198,000 → New GST 5%: ₹82,500
- Savings: ₹115,500
- Expected Payback: Reduced from 5.8 to 4.7 years
4. Step-by-Step Savings Calculator: GST in Solar Panel
- Select System Size (3 kW, 5 kW, 10 kW)
- Enter Base Equipment Cost
- Compute GST Savings:
Savings = (Base Cost × 0.12) − (Base Cost × 0.05) - Estimate Payback:
Payback (years) = Total CapEx ÷ Annual Savings - Visualize Results: Old vs. New payback timelines
5. Expert Insights
National Solar Energy Federation of India (NSEFI):
“This reform aligns with India’s 500 GW renewable capacity goal by 2030.”
FAQS: GST on Solar Panel
Q1. Which solar components qualify for the 5% GST?
All solar PV modules, panels, inverters, mounting structures, and BOS components are now taxed at 5% GST.
Q2. Does the GST cut apply to battery storage?
Currently, non-lithium batteries are taxed at 18%, and lithium-ion batteries also remain at 18% GST.
Q3. When do the new GST rates take effect?
The GST reduction to 5% on solar equipment is effective from September 22, 2025.
Q4. Can I combine GST savings with subsidies?
Yes, when combined with subsidies like the PM Surya Ghar Muft Bijli Yojana and MNRE Phase II program, your effective cost can be reduced by 20–30% more.
Also Read: Solar Subsidy Schemes in Uttar Pradesh: Noida & Ghaziabad Benefits
