Hybrid solar panel systems are gaining popularity in India due to their ability to combine grid-tied solar with battery storage, providing an uninterrupted power supply. However, understanding the Goods and Services Tax (GST) implications is crucial for homeowners, businesses, and installers.
What Is a Hybrid Solar Panel System?
A hybrid solar system integrates:
● Solar panels that generate electricity from sunlight
● Battery storage to store excess energy
● Grid connection to supply or draw power as needed
GST on Solar Systems in India:
The GST (Goods and Services Tax) rates on solar systems vary depending on the type of system and components:
| Component/System | GST Rate |
| Solar Panels (modules) | 5% |
| Hybrid Inverters | 5% |
| Batteries (Li-ion / Lead Acid) | 5% for ESS (Energy Storage Systems) 18% if sold separately for non-solar use |
| Complete Hybrid Solar System (Panels + Inverter + Batteries) | 5% |
How to Calculate GST on a Hybrid Solar System:
Step-by-Step Calculation Example:
Suppose a hybrid solar system costs:
● Solar Panels: ₹2,00,000
● Inverter: ₹50,000
● Battery: ₹1,00,000
Step 1: Add the components’ costs –
Total System Cost = 2,00,000 + 50,000 + 1,00,000 = ₹3,50,000
GST Amount = 3,50,000 × 5 / 100 = ₹17,500
Total Payable = 3,50,000 + 17,500 = ₹3,67,500
So, the customer pays ₹3,67,500 for the hybrid solar system, including GST.
Tips to Reduce GST Costs:
1. Claim ITC (Input Tax Credit) if you are a business entity; GST paid on solar systems can be adjusted against your output GST.
2. Buy complete hybrid systems from registered dealers to ensure concessional GST rates.
3. Government subsidies & incentives: Check if you qualify under state or central solar schemes, as GST can sometimes be waived/reimbursed.
4. Opt for ESS-integrated systems rather than separate batteries to benefit from the 5% concessional rate.
GST Benefits on Hybrid Solar Systems:
● Lower upfront cost due to concessional 5% GST compared to 18% on conventional electronics.
● Encourages renewable energy adoption by making hybrid systems more affordable.
● Transparency: GST invoicing ensures a clear record for subsidies or ITC claims.
Conclusion:
Calculating GST on a hybrid solar panel system is straightforward once you know the applicable 5% rate for renewable energy components. By understanding the cost breakdown and leveraging government incentives, homeowners and businesses can make the switch to hybrid solar systems cost-effectively while contributing to a sustainable future.
