Sources say that India is considering halving the import tax on photovoltaic panels and lowering the commodity and service tax on photovoltaic products to make up for the shortage of local production capacity and meet the growing demand for renewable energy.
In April 2022, India imposed a 40% tariff on imported photovoltaic panels and a 25% tariff on photovoltaic cells to curb imports from China. Indian Prime Minister Modi hopes to strengthen the country’s autonomy in renewable energy.
However, a source said that India’s domestic production capacity is lagging and needs to be imported to fill the gap.
According to three government sources cited by Reuters, the Indian Ministry of Renewable Energy has held consultations with the Ministry of Finance to approve its request to reduce the import tax on photovoltaic panels by a range of 40% to 20%. This decision has not yet been finalized. In addition, sources said that these two ministries may also recommend to the Indian Goods and Services Tax Commission to reduce the Goods and Services Tax (GST) on photovoltaic panels by a range of 12% to 5% from 2021.
Modi hopes to achieve the goal of installing 365 megawatts of photovoltaic energy between 2031 and 2032. India is promoting a series of green energy movements from electric vehicles to sustainable aviation fuels.
A government official stated that India’s import of photovoltaic panels in the next two years is expected to be nearly 8-10 megawatts per year.
Government data shows that from 2021 to 2022, India imported $3 billion worth of photovoltaic panels, of which 92% came from China. According to sources, the tax reduction measures are expected to reduce the cost of imported photovoltaic panels by one fifth, thus approaching the prices of locally produced products in India.
Since the establishment, MULTIFIT Solar has been paying close attention to the policy and regulatory changes in the Asian market. The Indian region has a large market with a large number of large customer groups and high market demand. Faced with the possible policy and regulatory adjustments made by the Indian government, MULTIFIT will actively adjust to cope with the changes. In addition, in order to give back to the local market, MULTIFIT is also expected to introduce a series of corresponding preferential policies, allowing customers to enjoy real benefits.
MULTIFIT will seize this opportunity and contribute to India’s goal of achieving photovoltaic installation capacity by 2032. At the same time, MULTIFIT will work with photovoltaic power generation companies to provide high-quality and efficient clean energy products, better leverage the role of photovoltaic power generation in the future energy transformation of green energy electricity, and promote the early realization of the global vision of carbon neutrality.
Since the establishment in 2009, MULTIFIT has always adhered to and implemented the goal of enjoying sunshine and benefiting thousands of households. We have provided one-stop solar system installation services to customers in many countries, including initial consultation, project survey, scheme design, engineering installation and operation maintenance. Choose MULTIFIT to help you easily achieve your goal of installing a solar system!
Post time: Oct-30-2023