The introduction of Goods and Services Tax (GST) has led to an increase in the cost of solar photovoltaic (PV) power generation by almost 6 per cent, an independent study by the Council on Energy, Environment and Water (CEEW) and the International Institute for Sustainable Development (IISD) said on Thursday.
At the same time, the GST has resulted in a decline in the cost of thermal power generation by 1.6 per cent. “The uncertainty surrounding the GST rates for various solar PV contracting structures and the imposition of safeguard duty may constrain India’s progress toward its ambitious target of 100 GW (gigawatt) of installed solar capacity through delayed investments,” Abhinav Soman, CEEW Programme Associate and study lead author, said.
It is important for policymakers to evaluate such impacts and their influence on our choices of energy sources, he added. Read More