Solar Panel Prices: On September 3, 2025, the GST Council reduced tax on solar panels and equipment from 12% to 5%, effective September 22, 2025. This landmark reform significantly lowers upfront costs for both homeowners and businesses in Noida, Greater Noida, and Delhi NCR.
As a leading solar EPC company, SIA Engineering is helping customers maximize these savings with solar installation in Noida, Greater Noida, and across India. This blog breaks down before-and-after prices, system-level cost implications, and ROI projections so you can make an informed investment decision.
Discover new price points for Tier-1 panels post-GST reduction.
| Panel Type | Price with 12% GST (₹/Watt) | Price with 5% GST (₹/Watt) | Savings (₹/Watt) |
| Monocrystalline Tier-1 | 39.20 | 36.75 | 2.45 |
| Polycrystalline | 33.60 | 31.50 | 2.10 |
| Bifacial | 44.80 | 42.00 | 2.80 |
Assumes base module prices excluding GST.
Impact of 5% GST on Solar Module Costs
For a 5 kW system requiring 5,000 Watts of panels:
| Panel Type | Base Cost (₹) | Old 12% GST (₹) | New 5% GST (₹) | Total Savings (₹) |
| Monocrystalline Tier-1 | 175,000 | 21,000 | 8,750 | 12,250 |
| Polycrystalline | 150,000 | 18,000 | 7,500 | 10,500 |
| Bifacial | 200,000 | 24,000 | 10,000 | 14,000 |
High-efficiency monocrystalline panels save you ₹12,250 on a 5 kW array, while bifacial modules deliver ₹14,000 savings.
For detailed installation costs, check our rooftop solar solutions.
Before vs. After: Solar Panel Prices India 2025
To calculate your personalized savings:
- Determine Your Panel Purchase Cost (Base Cost × System Size).
- Compute Old GST Amount: Base Cost × 0.12.
- Compute New GST Amount: Base Cost × 0.05.
- Calculate Savings: (Base Cost × 0.12) − (Base Cost × 0.05).
Example: For a 7 kW monocrystalline system (₹245,000 base):
Old GST = ₹29,400 | New GST = ₹12,250 | Savings = ₹17,150.
ROI Impact of GST Reduction: Solar Panel Prices
Lower upfront costs improve ROI and shorten payback:
| Panel Type | Pre-GST Payback (years) | Post-GST Payback (years) | Δ Payback (years) |
| Monocrystalline Tier-1 | 4.2 | 3.8 | 0.4 |
| Polycrystalline | 4.5 | 4.1 | 0.4 |
| Bifacial | 4.0 | 3.6 | 0.4 |
Faster payback means you start saving earlier, adding more free electricity during the system lifespan.
Commercial Case Study: Noida Office Building
- Size: 50 kW rooftop installation
- Base Panel Cost: ₹1,750,000
- Old GST 12%: ₹210,000 → New GST 5%: ₹87,500
- Savings: ₹122,500
- Payback Reduction: 6.2 → 5.7 years
This makes commercial adoption in Noida far more financially attractive.
FAQS: Solar Panel Prices
Which panel types are most cost-effective after the GST cut?
Monocrystalline Tier-1 panels offer high efficiency and save ₹2.45/Watt.
Can existing quotes be updated retroactively?
Vendors may issue revised invoices for orders placed before Sept 22 if GST wasn’t applied yet.
Does the GST cut apply to batteries?
No, lithium-ion and lead-acid batteries remain taxed at 18% GST.
How much can I save on a typical 5 kW rooftop system in Noida?
Savings range from ₹10,000–₹14,000 depending on the panel type.
Will the payback period really reduce after GST cuts?
Yes, most systems see ~0.4 year faster payback, boosting ROI.
Next Steps: Solar Panel Prices
- Book Free Site Survey: Lock in GST savings before rates change.
- Get Updated Quotes from SIA Engineering’s solar experts.
- Explore Financing Options to maximize cash flow benefits.
