India Mulls Tax Breaks for Solar, Wind Energy

India’s Ministry of New and Renewable Energy (MNRE) is set to meet solar and wind equipment makers in the coming days ahead of a planned restructuring of the goods and services tax (GST), officials said.

The ministry will assess the industry’s demands for GST rationalisation before forwarding them to the Finance Ministry, MNRE Secretary Santosh Kumar Sarangi said.

He added that solar and wind projects would be eligible for a case-by-case extension of the waiver on inter-state transmission system (ISTS) charges, which expired on June 30, 2025, if commissioning was delayed due to reasons beyond their control.

Requests for the waiver must be filed before the Central Electricity Regulatory Commission (CERC). The

ISTS waiver remains in place for energy storage projects until 2028, for green hydrogen projects until 2030, and for offshore wind projects until 2032, Sarangi said.

The secretary pointed to increasing acceptance of firm and dispatchable renewable energy (FDRE) bids, with lower battery costs driving down prices, and noted greater adoption of solar-wind hybrid projects over standalone solar or wind projects, given their ability to ensure round-the-clock supply.

On wind energy, Sarangi said states were

devising ways to promote projects and resolve on-ground challenges by holding stakeholder consultations and sharing best practices.

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