Taxing times for solar power as govt frowns at imports, pushes local

A new tax on solar equipment imports plus mandatory purchase of local modules will raise costs significantly and dim the outlook for meeting green energy targets

Will the Modi administration’s quest for “atmanirbharta”, aka self-sufficiency, take the shine off India’s solar goals?

India needs $225-250 billion in investments over the next eight years to add around 350 Gw of additional renewable energy capacity and meet the ambitious climate goals, Moody’s reckons. It’s a sprint, not a marathon.

But the Indian government has turned what should be a dash to the clean energy goalpost into a hurdles race by refusing to postpone a new tax on imports of solar equipment, and coupling it with mandatory purchase of local modules.

Installations are slowing. Soaring costs will affect returns