New Delhi, Sep 22 (PTI) GST reduction on renewable energy will save up to Rs 1.5 lakh crore for investors till 2030, Union Minister Pralhad Joshi said on Monday.

The comments from the Union New & Renewable Energy Minister assume significance as Monday is the first day of implementation of the Goods and Services Tax reduction.

In a bonanza to consumers, the GST Council, comprising the Centre and states, decided to reduce tax rates on goods and services, from September 22 -- the first day of Navratri.

The GST cut will give a significant boost to India's ambitious target of having 500 GW of renewable energy by 2030.

Talking to reporters on the sidelines of the CII 6th International Energy Conference, Joshi said, "I thank Prime Minister Narendra Modi for cutting GST on renewable equipment from 18 per cent to 5 per cent, especially on the occasion of the Navratri festival." He further said this will save Rs one lakh crore to Rs 1.5 lakh crore for investors till 2030.

According to the Ministry of New & Renewable Energy, given that India plans to add around 300 GW of renewable energy capacity by 2030, even a modest 2-3 per cent cost reduction can free up Rs 1–1.5 lakh crore in investment capacity.

Rooftop Solar under PM Surya Ghar: Muft Bijli Yojana will become cheaper by Rs 9,000–10,500 per 3 kW System.

Farmers under PM-KUSUM are expected to save Rs 1,750 crore on 10 lakh solar pumps with the GST cut, the ministry estimates show.

Earlier, addressing the conference, Joshi said at the COP26 in 2021, when Prime Minister Narendra Modi first laid down the roadmap for the country's clean energy journey, he set a target that many thought was impossible: 500 GW of non-fossil fuel capacity by 2030.

"Today, I am proud to say that we have already achieved over 50 per cent of our installed power capacity from non-fossil fuel sources, and we have done it five years ahead of the timeline. We have also crossed 50 per cent of the 500 GW target (252 GW)," he said.

He informed that nearly 20 lakh homes have benefited from solar power under the PM Surya Ghar: Muft Bijli Yojana.

He further said in a recent clean energy auction, Madhya Pradesh secured India's lowest-ever price for solar power with battery storage at just Rs 2.70 per unit.

He said the transmission system has been planned for about 537 GW of renewable energy capacity by 2030.

"Energy transition, energy storage and PPA are very serious issues, and we are consistently holding talks with states. We have already completed one round of talks with states, and very soon we will be holding the second round of talks," the Minister said.

Madhya Pradesh CM Mohan Yadav, who joined the event virtually, said solar, wind, pump hydro are various areas where the state is working through various policies in the space of renewable energy to meet India’s net zero targets.

As per a statement issued by CII, the Ministry of New and Renewable Energy (MNRE) will soon be holding the second round of talks with states on energy storage, energy transition and power purchase agreements (PPAs).

Muaviyath Mohamed, Minister of State, Environment and Tourism, Government of Maldives, said his country is enhancing climate resilience by focusing on renewable energy particularly solar power and had fruitful talks with the Indian Solar Alliance (ISA).

The Maldives looks forward to (working with) Indian companies to achieve its target of 33 per cent of electricity generation through renewable energy by 2028, he added.

Meanwhile, Praveer Sinha, Chairman, CII National Committee on Power and MD, Tata Power, said a huge amount of capacity will be added between now and 2030, and in order to do that collaboration and cooperation between the Centre and States is needed.

According to Girish Tanti, CII National Committee on Renewable Energy and CII RE Manufacturing Council & Vice Chairman, Suzlon, "Balanced growth of wind, solar and storage will ensure that we have stable and sustainable energy for all in the path to energy independence". PTI KKS ABI DRR

GST reduction on renewable equipment boosts renewable investment capacity and lowers consumer costs for solar installations and pumps. The Goods and Services Tax on renewable energy equipment has been reduced from eighteen percent to five percent to lower capital costs for developers, consumers and farmers, thereby expanding effective investment capacity through 2030; the change is projected to improve affordability of rooftop solar and solar pumps and is coordinated with transmission planning and follow-up state consultations on energy storage and power purchase agreements.