Off-grid solar panel systems are becoming increasingly popular in India, especially in rural and remote areas where grid connectivity is poor. These systems include solar panels, inverters, batteries, and a balance of system components to provide reliable electricity without depending on the power grid.
Applicable GST Rates for Off-grid Solar Systems (2025):
• Solar Power Generating Systems (SPGS) and their parts (like panels, inverters, charge controllers) are taxed at 5% GST.
• Solar Batteries (Li-ion / lead-acid) are taxed separately at 18% GST (since they are not covered under SPGS at 5%).
• Other Accessories (wires, mounting structures, switches) generally fall under 18% GST, unless bundled into a composite supply by an EPC contractor.
👉 If you purchase a full off-grid solar system as a package from an EPC provider, usually a blended GST of 8.9% is applied (this rate was clarified by the Ministry of Finance to simplify taxation for bundled solar systems).
Components of an Off-grid Solar System:
• Solar Panels (5% GST)
• Off-grid Inverter / Charge Controller (5% GST if part of SPGS)
• Solar Battery (18% GST)
• Mounting Structures, Wiring, BOS (18% GST)
Example GST Calculation on Off-grid Solar System (5kW System):
Let’s assume you are buying a 5kW off-grid solar system for your home or business.
System Cost Breakdown (before GST):
• Solar Panels (5kW @ ₹25/Wp) = ₹1,25,000 → 5% GST = ₹6,250
• Off-grid Inverter & Controller = ₹50,000 → 5% GST = ₹2,500
• Solar Batteries (4 x 150Ah @ ₹15,000 each) = ₹60,000 → 18% GST = ₹10,800
• Mounting + Wires + BOS = ₹20,000 → 18% GST = ₹3,600
Total Base Cost = ₹2,55,000
Total GST = ₹23,150
Grand Total = ₹2,78,150
Conclusion:
The GST on off-grid solar systems in India depends on whether you buy components separately or as a bundled package. While panels and inverters attract 5% GST, batteries and accessories fall under 18%. For EPC-provided turnkey systems, the effective rate is around 8.9%.
