Indian state of Haryana exempts solar components from VAT

The move by the Haryana government seen as clear support of solar industry, designed to lower the financial barriers for renewable energy in the Northern Indian state.

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Officials in the Indian state of Haryana have exempted solar devices, equipment, and all related installation components from Value Added Tax (VAT) in order to help support solar’s growth in the state, reports the Hindu Business Standard.

Those components listed as VAT exempt by the state government include solar lanterns, solar home systems, standalone street lighting systems, solar water systems and all types of solar chargers and PV inverters.

Haryana government’s principal secretary for the New and Renewable Energy Department Ankur Gupta confirmed the announcement on May 8, and said that government subsidy would be offered at a rate of 30% of the benchmark cost – up to INR 20,000 kWh – for certain buildings that set up grid-connected rooftop PV.

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There will also be net metering available for solar owners, while five acres of land have been acquired for the creation of a 1 MW solar project.

In recent months, delays have hampered connection and construction of solar projects in Haryana, with some surveys finding an unwieldy policy framework that was, in some cases, causing 90-100 days’ delay of rooftop installations and net metering.

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