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The reduction 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%.