Let’s understand it and look for an appropriate solution.
Solar energy has been emerging as a progressive and effective power generation alternative for residential, commercial, industrial use. Government policies have so far have remained favorable, and this had an advantage for the solar industry to have a 3-fold increment on Year-on-Year basis. The GST rate for the material used for equipment stood at 5% and it was making a smooth progress. Customers were understanding the need and have been inclined to buy such solar solutions that help them reduce their dependence on grid power.
But now as per government’s new norms, from October 01, the GST rate will be 12%, due to which the price of solar power equipment will increase by 7% - 10 %.
Who will bear this additional cost?
This decision of GST increase by GoI- Govt. of India, will have a direct impact on the customer. This means that the impact of price increase from October 01, 2021, will affect the pocket of the customer.
How can this be mitigated?
Solar equipment with better efficiency will be able to counterbalance and solve this to a certain extent. Solar panels based on new technology such as bifacial solar panels which have the unique capability to generate electricity both from the front and back side and produce 30% extra electricity.
The companies are looking at developing and adopting solutions that continue to generate more electricity per square meter of the rooftop space.
How will this benefit the customer?
Customers need to look for such organizations who are providing solar solutions with better efficiency which are being developed in India to promote ‘Make in India’ and are using the latest technology. Mono PERC with 12 bus bar is a proven, effective and latest technology that has seen very effective field results that can help customers gain benefit and neutralise the GST impact.