Solar water heaters (SWH) are one of the most cost-effective renewable energy products widely used in Indian households, hotels, hostels, and industries. They save electricity, reduce LPG consumption, and lower utility bills.
GST Rate on Solar Water Heater (2025):
• As per GST notifications, Solar Water Heaters and Systems attract 12% GST.
• This is higher than the 5% GST on solar PV panels because solar water heaters are categorized separately under renewable heating systems.
• Any additional accessories (pipes, insulation, pumps) bought separately may fall under 18% GST.
Components of a Solar Water Heater:
A typical system includes:
• Collector (Flat Plate Collector or Evacuated Tube Collector)
• Storage Tank
• Piping & Insulation
• Mounting Stand & Valves
• Optional Pump (for forced circulation systems)
Example GST Calculation (200 LPD Solar Water Heater):
Let’s assume a 200 LPD solar water heater for residential use.
Base Price (before GST):
• Collector + Tank + Structure = ₹22,000
• Piping & Accessories = ₹3,000
Total Base Price = ₹25,000
GST @ 12% = ₹3,000
Grand Total = ₹28,000
Conclusion:
Solar water heaters are an excellent investment to cut down on electricity or LPG bills. In India, GST on these systems is 12%, making them slightly more taxed than solar PV systems but still affordable in the long run. Understanding GST helps buyers plan their purchase and avoid billing confusion.
