Tariffs for renewable energy such as solar and wind power are likely to fall considerable post Goods and Services Tax (GST) with rates falling down for many items barring few exception that go into making of renewable power plants with provision for input credits, according to Head of GST, Ministry of New and Renewable Energy, Ruchin Gupta.
Speaking at a Conference on GST in Renewable Energy – Decoding Myths & Reality under aegis of PHD Chamber of Commerce and Industry in New Delhi today, Gupta though added that many issues are erupting and confronting renewable post GST and the department concerned is seeking their addressal for a win-win situation.
It will though take some time to resolve the surfacing issues since the GST has come into vogue but on tariff front, the department of renewable is quite confident that since majority of renewable items are taxed at 5 percent GST, the wind and solar power tariff will go down considerably in near future, hinted Gupta.
According to him, the developers of renewable energy would have to take up the issue of tariff fixation with concerned regulator and with proper homework, the tariffs are likely to be further rationalized.
The Conference was moderated by Director, PHD Chamber, Ranjeet Mehta who felt that since GST has been seen as the most rationalized and considerate taxation, the tariff of solar and wind energy as also other related renewable would fall in due course of time.
Currently, wind and solar together account for almost 14 percent of India’s installed power capacity. The Centre has announced a massive renewable power production target of 175,000 MW by 2022; this comprises generation of 100,000 MW from solar power, 60,000 MW from wind energy, 10,000 MW from biomass, and 5,000 MW from small hydro power projects. Over the next three years alone, the renewable energy sector can generate jobs for about 80,000 Indians.
The industry employed over 21,000 people in India in 2016-2017 and is expected to employ an estimated 25,000 people more in 2017-18, according to an analysis by the Council on Energy, Environment and Water (CEEW), a not-for-profit research organisation based in New Delhi, and the Natural Resources Defense Council (NRDC), a nonprofit think tank.
In 2016, India accounted for 5 percent of the world’s renewable-energy capacity, and invested $9.7 billion (Rs 64,990 crore) in the sector, according to the Renewables Global Status Report 2017, released by REN 21, an international non-profit working on renewable energy.
Of the more than 300,000 workers identified in the CEEW-NRDC analysis, 237,980, or about two-thirds, are likely to work in rooftop solar and the rest in ground-mounted solar and wind industries. The CEEW-NRDC study also estimated that 45,000 additional jobs could be created through solar module manufacturing if the country meets its demand for the product domestically.
However, in 2016, local manufacturers struggled in the face of cheap imports while Chinese firms supplied an estimated 80 percent of the total requirement. Indian firms accounted for no more than 13 percent of supply, according to a 2017 report by International Renewable Energy Agency (IRENA).