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					</table><p>The <a href="https://www.mercomindia.com/new-gst-rates-on-renewable-energy-goods-likely-to-reduce-costs-and-tariffs" target="_blank" rel="noopener">reduction</a> in Goods and Services Tax (GST) from 12% to 5% on solar cells and other renewable energy devices is likely to lower power costs for consumers while enhancing project viability for developers. Besides solar cells, windmills, and wind-operated electricity generators, as well as ocean/tidal wave devices, will also benefit from the GST cut. The tax rate also applies to fuel cells for motor vehicles, including those powered by hydrogen. The GST on non-lithium batteries was reduced to 18% from 28%.</p>
<p>Rooftop solar has <a href="https://www.mercomindia.com/rooftop-solar-adoption-faces-policy-hurdles-despite-growing-awareness" target="_blank" rel="noopener">emerged</a> as a critical component of India’s renewable energy growth, particularly in the commercial and industrial sectors. With declining solar module costs and supportive net metering policies in several states, businesses are increasingly exploring rooftop installations to reduce electricity costs and meet sustainability targets. However, adoption has not been uniform across regions, and challenges related to policy, investment, and technical execution continue to influence deployment.</p>
<p>The Andhra Pradesh Electricity Regulatory Commission <a href="https://www.mercomindia.com/andhra-pradesh-releases-battery-energy-storage-regulations" target="_blank" rel="noopener">introduced</a> the Battery Energy Storage Systems (BESS) Regulations, 2025, providing a clear framework for the deployment and integration of energy storage technologies in the state. This move supports the state’s Integrated Clean Energy Policy, 2024, which has set a target of adding 25 GWh of BESS capacity by 2029. The framework allows BESS to be developed, owned, leased, or operated by a variety of entities, including distribution and transmission licensees, system operators, generating companies, IPPs, renewable developers, independent storage service providers, and aggregators.</p>
<p>The Tamil Nadu Electricity Regulatory Commission <a href="https://www.mercomindia.com/tamil-nadu-electricity-regulator-allows-land-lease-for-bess-projects" target="_blank" rel="noopener">permitted</a> the Tamil Nadu Transmission Corporation to lease portions of its substation land to private developers to install BESS at a nominal charge of ₹1 (~$0.0113)/project/annum for 15 years. TANTRANSCO approached the Commission seeking approval to provide the right of use of its substation land to BESS developers. It proposed that land at six substations be leased for a token charge of ₹1(~$0.0113)/project/annum. The proposal aimed to establish 1,000 MWh of energy storage capacity under the state component of the Viability Gap Funding program, routed through the Tamil Nadu Green Energy Corporation.</p>
<p>The Maharashtra Electricity Regulatory Commission <a href="https://www.mercomindia.com/merc-approves-discoms-power-sale-agreement-for-300-mw-hybrid-power#:~:text=The%20Maharashtra%20Electricity%20Regulatory%20Commission,of%20%E2%82%B90.07%20(~%240.0007)." target="_blank" rel="noopener">approved</a> the power sale agreement between Maharashtra State Electricity Distribution Company (MSEDCL) and NTPC for 300 MW of wind-solar hybrid power at a tariff of ₹3.36/kWh (~$0.038)/kWh. It also approved a trading margin of ₹0.07 (~$0.0007). The 300 MW capacity would be added to the 480 MW capacity previously approved by the Central Electricity Regulatory Commission. However, the Commission warned MSEDCL to be vigilant about all the transmission and approval risks and ensure that power delivery issues are avoided.</p>
<p>Sterling and Wilson Renewable Energy (SWREL) <a href="https://www.mercomindia.com/sterling-and-wilson-secures-letter-of-intent-for-bos-of-300-mw-solar-project" target="_blank" rel="noopener">received</a> a letter of intent from a private independent power producer for the engineering, procurement, and construction (EPC) of the balance of system (BoS) package for a 300 MW solar project in Rajasthan. The estimated contract value of the project is ₹4.15 billion (~$47 million). The scope of work includes EPC for the BoS of a 300 MW solar power project with a 220/33 kV substation in Rajasthan, as well as the operation and maintenance of the project. In a regulatory filing, SWREL reported gross order inflows exceeding ₹24 billion (~$271.8 million) this year.</p>
<p>State-owned Oil India’s board of directors <a href="https://www.mercomindia.com/oil-india-partners-with-rajasthan-discom-to-develop-renewable-energy-projects" target="_blank" rel="noopener">approved</a> the formation of a 50:50 joint venture with Rajasthan Rajya Vidyut Utpadan Nigam to develop renewable energy projects. The board also approved the transfer of renewable energy assets to its wholly owned subsidiary, OIL Green Energy, at the book value of the respective assets as of the closing date of the power purchase agreements, as determined by the provisions of the business transfer agreement to be executed.</p>
<p>JBM ECOLIFE Mobility, a subsidiary of electric bus manufacturer JBM Auto, <a href="https://www.mercomindia.com/jbm-ecolife-secures-100-million-investment-from-ifc-to-deploy-1455-e-buses" target="_blank" rel="noopener">secured</a> a $100 million long-term capital investment from International Financial Corporation (IFC) to deploy 1,455 air-conditioned electric buses (e-bus) across cities in Maharashtra, Assam, and Gujarat. In a bourse filing, the company said this is IFC’s first capital investment in the e-bus sector in Asia and its largest globally. JBM ECOLIFE operates e-buses in several cities, including Mumbai, Delhi, Ahmedabad, Surat, Bhubaneswar, Hyderabad, and Cuttack, and plans to expand further, targeting operations of more than 6,500 buses within the next two years.</p>
<p>In June this year, the U.S. <a href="https://www.mercomindia.com/us-move-to-double-tariffs-on-steel-and-aluminum-could-hurt-indian-exports" target="_blank" rel="noopener">doubled</a> Section 232 tariffs on steel and aluminum, and on their derivatives, from 25% to 50%. This was followed by the Department of Commerce adding 407 product categories to the list of “derivative” steel and aluminum goods in August, raising fears of price increases for renewable energy equipment. While the White House framed the move as a national‑security response to excess global capacity and circumvention, these moves could raise prices for wind turbines, power transformers, insulated cables, and mounting structures.</p>
<p>Solar component imports into Europe could <a href="https://www.mercomindia.com/europes-solar-industry-wants-cbam-extended-to-module-and-tracker-imports" target="_blank" rel="noopener">become</a> more expensive if a proposal to extend the Carbon Border Adjustment Mechanism (CBAM) to solar modules, trackers, and mounting structures is accepted by the European Commission. The European Solar Manufacturing Council has recommended to the Commission that solar products be brought under the CBAM’s ambit, as they rely heavily on carbon-intensive materials such as aluminium and steel, which are already covered by the adjustment mechanism.</p>


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