New Delhi, Sept. 17 -- The rationalization of GST rates across the renewable energy value chain from 12 per cent to 5 per cent will bring down the cost of clean energy projects, making electricity more affordable and directly benefiting households, farmers, industries, and developers.

As per a release by the Ministry of New and Renewable Energy, the capital cost of a utility-scale solar project, which typically amounts to around Rs. 3.5-4 crore per MW, will now see savings of Rs. 20-25 lakh per MW. At the scale of a 500 MW solar park, this translates into project cost reductions of over Rs. 100 crore, significantly improving tariff competitiveness.

The reduction in GST is expected to lower levelised renewable tariffs, easing the financi...