Tax Revision in Solar EPC: Big News for Solar Companies in Kerala
The solar energy industry in India has received a major update that directly impacts both customers and installers. The latest tax revision in Solar EPC brings down the effective tax rate on solar system installations, making clean energy adoption more affordable. For customers looking for trusted solar companies in Kerala, this change comes as a timely advantage.
Old EPC Tax System Explained
Until recently, the tax on installing a solar system was split into two categories:
70% of the total amount (panels + inverter) taxed at 12%
30% of the total amount (electrical components) taxed at 18%
This structure meant customers paid an effective tax rate of 13.8% (8.4% + 5.4%) on the entire solar system.
New Tax Update: A Game Changer
Under the revised policy, the tax rate on 70% of the system cost (panels + inverter) has been reduced from 12% to 5%, while the 30% share for electrical components remains at 18%.
➡️ This brings down the total effective tax to just 8.9% – a significant drop from the earlier 13.8%.
How This Benefits Customers
This revision is great news for homeowners and businesses in Kerala:
✅ Lower installation costs make solar more affordable.
✅ Faster return on investment (ROI) as customers recover costs quicker.
✅ Encourages wider adoption of renewable energy.
✅ A big push for top solar companies in Kerala to serve more customers efficiently.
The Role of Leading Solar Companies in Kerala
With this update, the demand for solar installations is expected to rise. Choosing the best solar company in Kerala ensures customers enjoy high-quality panels, expert installation, and long-term service support. Companies like Powergene Solar, recognized among the top 10 solar companies in Kerala, are well-positioned to help households and businesses make the most of this tax advantage.
Conclusion: A Brighter Future for Solar in Kerala
This tax update is not just a financial relief but also a major step toward accelerating renewable energy adoption. For anyone considering switching to solar, now is the perfect time. Trust experienced solar companies in Kerala to deliver reliable, affordable, and future-ready energy solutions.
🌞 To learn more about solar installations and updates, visit www.powergenesolar.com.
