Proposed Taxes Throw Shade as Solar Heats up in India

Businesses and homes around the world are switching to solar power and discovering both economic and environmental benefits. However, this process involves a considerable transition from nonrenewable fossil fuels to clean energy resources. Now more than ever people are looking to India for inspiration about how to become successful in the solar industry.

Businesses and homes around the world are switching to solar power and discovering both economic and environmental benefits. However, this process involves a considerable transition from nonrenewable fossil fuels to clean energy resources. Now more than ever people are looking to India for inspiration about how to become successful in the solar industry.

Solar power in India

India is rising as a global leader in clean energy. This year, the country with a population of over 1.3 billion people announced that is was canceling plans to build several coal-powered stations. Instead of drawing energy from these nonrenewable systems, India will power up new solar panel initiatives. This means there will be less pollution clouding the air and more clean energy use across the country.

Record-breaking power

India is now the official world record holder for the largest solar farm. With the Kamuthi solar plant’s expansion, India also ranks third in utility-scale solar, only China and the U.S. rank higher. The Kamuthi solar plant generates nearly 650 megawatts and covers 2,500 acres. Before topping the charts in solar power, India was leading in a far different category. Air pollution has become a serious problem across India. The capital city of New Delhi was named the “world’s most polluted city,” leading to an official state of emergency. Indian states are taking the pollution problem seriously, which is one reason for the national focus on solar power.

The price of solar energy

The price of solar energy has dropped dramatically, making it more affordable and more accessible for homes and businesses. In 2017, solar energy was cheaper than coal for the first time ever.

Investors are taking notice of India’s success in the solar industry. People from all over the world are contributing to India’s solar success and supporting additional clean energy programs. Global financial support and strong local leadership have transformed India’s solar infrastructure into a promising market. Countries around the world are looking to India as an example of a successful developing solar power industry.

Proposed tax plan cools solar power growth

As India’s solar industry heats up, a proposed tax plan has the potential to throw shade at its success. The upcoming proposed Goods and Services Tax (GST) regime includes a rate hike specifically targeting project costs for solar panels. Both purchasers and solar project developers would sweat under the higher price tag. While the long-term effects of these tax changes will be minimal, there could be plenty of short-term backlash in the renewable energy sector.

The promise of solar power

For a country with over 40 percent of households living without electricity, solar panels are a promising new technology. Solar panel installations can help power rural Indian homes and villages across the country. More light means more time for children to study, more time to get work done around the house and protection from rodents, snakes and other dangers of the night.

Solar energy is a beacon of sustainable hope as people around the world look for renewable energy resources. India is just one of many nations committing to an eco-friendly future.