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GST Rates & HSN Codes for Solar Rooftop Products

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GST Rates and HSN Codes for Solar Rooftop Products in India

HSN (Harmonized System Nomenclature) Number and SAC (Services Accounting Code) Number got its place as a new column in invoices for Solar Equipment after the implementation of the GST. Yes, it is mandatory to give a column in invoices for HSN/ SAC. Confused? Here’s an attempt to make it simpler for you.

Solar energy has been emerging as a progressive and effective power generation alternative for residential, commercial, industrial use. Government policies have so far have remained favorable, and this had an advantage for the solar industry to have a 3-fold increment on Year-on-Year basis. The GST rate for the material used for equipment stood at 5% and it was making a smooth progress. Customers were understanding the need and have been inclined to buy such solar solutions that help them reduce their dependence on grid power.

But now as per government’s new norms, from October 01, the GST rate will be 12%, due to which the price of solar power equipment will increase by 7% – 10 %.

What has HSN and SAC got to do with the GST?

We all know that GST is Goods and Service Tax. Which means the tax on Goods or Services or Both. HSN number is used to classify the Goods that come under GST into “22 sections and 99 chapters”. SAC codes are similar to HSN codes and have been used since before implementation of GST.

Why HSN and SAC?
GST is followed in around 160 countries out of 196. Globally, most of them follow similar HSN/ SAC codes with a very slight difference between one another. This helps in attracting foreign trade as (import or export) by easing the taxations.

How is HSN code classified?

It has 21 sections with 99 chapters, 1,244 headings and 5,224 subheadings. They are arranged based on the product degree of manufacture or in terms of its technological complexity. The natural products that include plants and animals come under the initial sections. While the man-made or technologically advanced products that include machinery come later.

The HS comprises approximately 5,300 article/product descriptions that appear as headings and subheadings, arranged in 99 chapters, grouped in 21 sections. The six digits can be broken down into three parts. The first two digits represent the chapter the goods are classified in, e.g. 09 = Coffee, Tea, Maté and Spices. The next two digits identify groupings within that chapter, e.g. 09.02 = Tea, whether or not flavoured. The final two digits are even more specific, e.g. 09.02.10 Green tea (not fermented). All countries classify products in the same way, upto 6 digits filtering (a few exceptions exist where some countries apply old versions of the HS).

Every section is a collection of various chapters. The sections represent broader classification of goods and chapters represent a smaller section that filters down to particular product section.

In order to identify the goods better, India and some of the countries use this 8 digit code for a more specific classification. Some of the HSN codes use dashes in the beginning of description which denotes an article that belongs to a group covered under a heading. A double dash indicates that the article is sub-classification of the preceding article that has a single dash. And triple dash indicates that the article is a sub classification of the preceding article that has a double dash or triple dash.

SAC code in GST

SAC and HSN are the similar codes under GST. In case of services, for each type of service provided is given a unified code for recognition, measurement and taxation. These are known as SAC codes. In the current service tax regime, SAC codes are already defined for each type of service.

  • The small dealers under composition scheme will not require to mention SAC codes in their invoices. The codes will be mentioned in invoice and in the GST tax return details which will be uploaded on the GST portal.
  • The small business under composition scheme will not be required to mention SAC codes in their invoice.

Services will continue to be classified under Services Accounting Code (SAC) which is issued by the government for service tax. This is expected to remain in GST regime.

How it affects Solar Industry?

Though our Honourable Prime Minister Mr. Narendra Modi has announced in his speech that all Renewable energy equipments will be taxed 5% GST, traders are confused as there have been no written statements or Orders passed yet which has stalled the market since a week.

As per our understanding, HSN Numbers and GST % are as follows:

This May we had published a preliminary guide on expected GST rates for the rooftop solar industry. Now that the dust has settled, the final rates are clear. Below information serves as a ready reference for the GST rates 

applicable along with relevant HSN codes for the solar industry in India:

Item HSN/SAC Code GST Rate Applicable
Battery 8507 28%
Solar Module 8541 5%
Charge Controller 8504 28%
LED Lights 9405 12%
Solar Lantern with Modules 85 (4/6 digit code awaited) 12%
Solar Power Generating Systems 85 (4/6 digit code awaited) 12%
Solar Inverter 8504 12%
Data Loggers 8517 18%
GI Mounting Structure 7308 18%
Al Mounting Structure 7610 18%
Cables 8544 18%
Solar Water Heater & System 8419 12%
Erection, Installation & Comissioning Services 9954 18%

*The GST rate applicable on solar inverters is still under debate with some vendors invoicing at 5% GST and others at 28%.

In addition to this, the rates applicable on the various components required in the assembly of solar panels are below:

Item HSN Code GST Rate Applicable
Tempered Glass 7007 28%
EVA Backsheets 3921 18%
Aluminium Frame 7604 18%
Junction Box 8536 28%
Solar Cells 8541 12%
Solar PV Ribbon 7409 18%

“ There are no secrets to success. It is the result of preparation, hard work, and learning failure ”

- Tina Retina

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Easy steps to install solar panels for homes

Are you interested in knowing how solar panels for homes can be installed? Then, you are at the right place! Due to the increased benefits that come with the solar panels, a large number of people have started installing solar panels for homes. The availability of the empty rooftops and the attractive subsidies from the government along with the contribution to pollution free environment has made solar panels for homes a reality. But the people are not quite aware of the installation process. The solar panels for homes can be installed with the help of the EPC contractors, who take care of every single step in the process or the house owners can purchase the solar panels and install them on their own. This article gives a detailed step by step process followed by the solar EPC installers while installation of the solar power plants for homes. 

First things first! Understanding the nature of rooftop. The rooftop of the home is analyzed for the space, sunlight availability, shadows nearby to come up with the solar power plant design for homes. This is the crucial first step. A proper site analysis helps in development of a flawless solar power plant design. Then the power requirement of the home is studied based on the previous electricity consumption pattern. After deciding on the capacity of a solar power plant for the home, Selecting the right type of solar power system is the next step. 

There are different types of solar power system installation. Off- grid solar power systems come with batteries and are a stand – alone system. Whereas, the on – grid system is connected to the public electric grids and net metering facility is fixed to keep the track of power generated and supplied to the grid. This is later adjusted in the electricity bill. Nowadays the on – grid solar power systems with net metering facility installed are the most preferred for homes. This helps the solar power plant owners to sell the excess energy. The next is the material procurement and installation phase.

solar installation

Setting up solar panels for home

In setting up the solar panels for homes on the rooftop, the angle of tilt and the direction in which the solar panels will face is an important point to note. This angle and direction are the major deciding factor in determining the yield and efficiency of your solar panels. The direction of the solar panels is usually based on the hemisphere in which the location lies. A place located in the northern hemisphere of the globe should have south facing solar panel installations to get maximum sunlight. For example, India, a country in the northern hemisphere, the solar panels are south facing. As far as angle of tilt is considered, the solar panels are installed at an angle equal to the latitude of the place. All these features are decided during the site survey itself. During installation, the mounting structures are constructed based on this angle and direction. 

In setting up the solar panels for homes in the rooftop, the angle of tilt and the direction in which the solar panels will face is important 

– Solstrom

After the mounting structures or solar structures are fixed, the solar modules are assembled on the structures. Several solar panels are connected together based on the electricity needs of the home and the availability of rooftop space to install the solar panels. The nuts and bolts of the solar modules are fixed and fastened properly. Every single step including tightening of the bolts is important for ensuring the long life of the solar modules.  If the bolts and nuts are not of good quality or not fastened properly, a strong wind will blow away the panels. 

The next is the electrical wiring of the solar panels. High corrosion resistant wires are essential for proper functioning of the solar power system as a whole and also contributes to reducing loss in electricity. MC4 connectors are increasingly used in the installation of the solar panels for homes. Junction boxes and MC4 connectors are selected based on their high quality and ability to withstand diverse climatic conditions of different locations in which the solar power plants are installed. Series and parallel connection of the wires are taken care of throughout the entire installation process.

At last, the inverter for the solar panel is chosen and connected with the solar panels. as the power from the solar panels is DC (Direct Current), it has to be converted into AC (Alternating Current) for use in home appliances. Choosing and installing the right quality inverter also maintains the efficiency of the solar panels and reduces losses. The other connection like inverter to battery in case of off – grid system and connection of inverter to grid in case of on – grid system is made. This is the entire process of solar panel installation for home. The products required for installation of solar panels for homes are available at SOLSTROM. Visit our products and services pages to know more on the quality solar power plant products.

10 things to know about photovoltaic (PV) solar panels in India

Electricity bills are High?
EB Bill is giving a shock to your wallet?
Thinking about going solar for your house?

Solar Energy is the cheapest form of Electricity and Get it installed by SOLSTROM – best solar energy company in India from Chennai

Solar photovoltaic (PV) systems – also known as solar panel systems, solar energy systems, or solar power systems – convert sunlight into electricity. You can use the electricity generated by your solar PV system to power your home, your business or even your car.

How solar energy works

Solstrom 1. Solar panel systems are a great way for you to save money, no matter what your budget is.

If you can afford to pay your electricity bill every month, you can afford to install a solar panel system. With a $0-down solar loan, solar lease or PPA, you can finance your system and see immediate savings.

Solstrom2. Installing a solar panel system is a great investment.

Investing in a solar panel system can deliver better returns than stocks and bonds – and now is the right time to make that investment. While solar photovoltaic technology is improving incrementally each year, financial incentives and rebates will decrease as solar becomes more popular.

Solstrom 3. Solar photovoltaic systems have been around for a long time.

Solar photovoltaic systems are a well-proven technology first invented in 1954 by scientists at Bell Labs. Today, solar panels are installed on over two million homes in the U.S.

Solstrom4. Solar panel systems are highly durable.

Solar photovoltaic panels are made of tempered glass and can withstand hail, snow, rain, and high winds. They can even extend the life of your roof by protecting it from daily wear and tear.

Solstrom 5. Solar power systems can produce electricity for 25 or more years.

Most solar panel manufacturers offer a 25-year power production warranty guaranteeing that their solar panels will continue to generate electricity at a certain capacity for the warranty’s duration.

Solstrom 6. Solar power systems are practically maintenance-free.

Solar panel systems are incredibly durable. Except in extreme circumstances, they don’t need to be washed or cleaned.

Solstrom 7. Solar panels can be installed almost anywhere in the India.

Most locations in Tamil Nadu and India get enough sunlight to produce sufficient electricity from solar panels. The most important factors to consider when you evaluate your solar panel options are the rates you pay for electricity and the rebates and incentives available to you.

Solstrom 8. Solar energy systems are tied to the electric grid and do not require batteries to store power.

When you install a solar energy system on your property, you remain connected to the electricity grid. At times when your system produces more electricity than you use, you receive credit for the electricity you send to the grid; if you need more electricity than your solar energy system is producing, you can draw it from the grid.

Solstrom 9. Solar power systems can eliminate most of your electricity bill.

With the right planning, your solar panels can generate enough electricity to meet your needs over a 12-month period. As long as you have enough roof space to install the right size solar panel system, the power that your panels will produce will effectively eliminate most of your electricity bill.

Solstrom10. Solar photovoltaic panels can be installed on the roof of your home or commercial property, on the ground or on a solar canopy.

Solar panels can be installed practically anywhere that receives direct sunshine for most of the day and is not shaded by trees or buildings. Panels that face south will produce the most electricity, but your panels can also face east or west.

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Best Solar Monitoring Solutions in India

Solar power plant on a industrial Roof

Why it is important to have Solar Remote monitoring solutions for your plant?

A solar monitoring system can help make you more aware of your PV system’s performance. It offers information about energy consumption and generation, optimizing energy usage, and damage to your solar system, among other topics. It’s important to monitor your solar setup in some manner – without monitoring, it can be difficult to figure out if your solar panels are operating at their best.

I believe only in God, Rest everyone should bring DATA
-Anonymous

How solar monitoring systems work

Solstrom

Solar monitoring systems operate through your solar system’s inverter(s).

Companies will often offer solar inverters that come with a proprietary monitoring software setup.

As your solar inverter converts DC current into AC current for use in your home, information about power levels and production is collected and sent to cloud-based monitoring systems and their companion apps. Homeowners can access this information several ways, including through mobile apps and paired smart home devices. Some monitoring systems offer on-site monitoring as well, and wire information from the inverters directly to a monitoring device on your property.

Most monitoring systems can be setup to have cellular capabilities, allowing you to access system data stored in the cloud from mobile devices without needing to connect to your WiFi network. As a result, if your personal internet connection is lost, you may still be able to access your solar monitoring system.

Systems with power optimizers don’t rely on a wireless connection to transmit data, so monitoring continues during internet outages. Depending on the interface you have set up, you may also be able to access your monitoring data even when your internet is down. However, this isn’t the case for microinverter monitoring systems. They rely on a WiFi connection to monitor each panel individually, in real time. This means that when the internet goes down, so do your monitoring capabilities.

Aside from displaying energy consumption and generation data, monitoring systems offer many tools to help you understand your solar energy setup. Monitoring software often can help detect problems and defects with panels, and recommend repairs to your setup. You can often also track historical data from your system. For example, monitoring systems offer data on historical weather-based performance, so you can know how the weather has impacted your solar production in the past, and what you might expect in the future.

Solstrom

Enphase vs. SolarEdge monitoring systems

Two of the most popular solar inverter providers, Enphase and SolarEdge, offer high quality, proven solar monitoring solutions alongside their inverter products.

One of the main differences between the two systems is the type of inverters used. Enphase employs microinverters located at each individual solar panel in your system, which communicate wirelessly with a central device that provides data to their mobile application. SolarEdge uses power optimizers wired to a central inverter, which connects wirelessly to the internet, and in turn to a mobile application.

There are additional differences between the two systems, but the choice of inverters figures to be the most important limiting factor when deciding between the two companies for monitoring systems. Aside from Enphase and SolarEdge, many other companies offer varying levels and types of solar monitoring systems, all of which will help you to understand your solar panel setup and operation in more detail.

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Off Grid Vs On Grid

On-Grid vs. Off-Grid Solar Power Plant.

When it comes to the topic of solar panel installation, you may have heard about the terms grid-tied (a.k.a on-grid) and off-grid solar Power Plant. These two are such important concepts to learn when installing solar power systems.

Depending on your location in India, power requirements and grid availability, you will have to choose which one to install. In this article, we will further elaborate on the differences between these two systems.

What’s the main difference between on-grid & off-grid solar systems?

The simple answer to this is that on-grid / grid-tied solar systems are connected to the main utility power lines called the grid, while off-grid systems are not. An off-grid system may require batteries and, sometimes, a back-up generator; while an on-grid system doesn’t.

In a grid-tied system, there will be a lesser number of components compared to an off-grid one. It’s simply because it does not need an energy storage device, back up generators or complex control electronics.

If you want a cheaper and simpler solar power system, you will go for on-grid system. However, in places where grid power is unstable or not available at all, off-grid solar systems will provide the electricity your appliances need.

 
Solar Power Plant mounted on solstrom's aluminium single module mounting structure

Top 5 Differences: On-grid Vs. Off-grid Solar Systems

On-Grid Solar Power Plant
  • Connects to utility’s grid for synchronization and operation.
  • Can export excess solar energy to the grid depending on the utility regulations, which requires approvals and documentations.
  • Does not produce solar energy when the grid is down.
  • Lower maintenance and installation costs.
  • A simple system and has less number of components.
Off-Grid Solar System
  • Does not need any connection to the power system’s grid.
  • Uses batteries to store solar energy for later use.
  • Not affected by grid failures and shutdowns.
  • Maintenance and installation costs are more expensive.
  • Can sometimes be complex but you will learn a lot more.

Grid Connected Vs Off Grid solar - Components

On Grid Solar System components

  • Solar Panels.
  • DC Distribution Box DCDB
  • Inverters
  • Module Mounting Structures
  • AC Distribution Box (ACDB)
  • Energy meter
  • AC Circuit breaker at interface point

Off-Grid Solar System components

  • Solar Panels

  • Solar Charge Controllers

  • DC Combiner Box (AJB/DCDB)

  • Batteries

  • Off-Grid/Hybrid Solar Inverters

  • AC Breakers

  • Meters (Optional)

  • Back Up Generators (Optional)

Conclusion

The differences between off-grid and on-grid systems are presented here in this blog post. They both have their advantages and disadvantages when it comes to cost, user preference, efficiency, and dependability. However, it is up to the homeowner, or whoever is planning to install solar panels, to do an assessment.

You may want to check how to design a solar power system here. We will be adding new tutorials using different kinds of solar PV simulation software. Here are some articles you might want to read:

Solar Energy Pros & Cons

Learning about solar energy advantages and disadvantages is essential, especially, when you are planning to install a solar power system. Knowing the pros and cons of solar energy will be necessary before you buy and install solar panels on your property.

The balance between the benefits and drawbacks of solar energy is vital for your decision-making process. In fact, it is the key factor for people to go for solar. It also allows them to confirm if installing a solar power system is really suitable for them. In this article, we present to you the list of advantages and disadvantages that will help you balance things out concerning your solar power system.

Solar Panels installed on aluminium mini rails manufactured by solstrom

Top 5 Solar Energy Pros and Cons

BENEFITS OF SOLAR ENERGY
  • Renewable
  • Abundant
  • Environment Friendly
  • Low Maintenance Costs
  • Saves You from Increasing Electricity Bills
DRAWBACKS OF SOLAR ENERGY
  • High Initial Cost
  • Highly Dependent on Weather
  • Energy Storage is Expensive
  • Savings Depend on Electricity Costs
  • Requires a Huge Space
Solstrom has decade of experience in the field, installed from Solar Street Light to Solar farms of 100 MWs. 
Contact our experts @ 9952054308 for best solar systems

Solar Energy Advantages

Undoubtedly, the benefits that solar energy brings can easily persuade people to go for it. Knowing these will help them weigh things for the important decision. So, we have compiled below the list of solar energy advantages.

  • Source of energy (Sunlight) is readily available almost anywhere.
  • It is a clean source of energy.
  • It cuts down monthly electricity bills from electrical utilities.
  • Solar energy helps the power suppliers in supplying the electricity demands of customers.
  • It is a renewable energy source.
  • This reduces our dependence on fossil fuels or oil and gas.
  • It has diverse applications or uses.
  • Solar power gives return on investments.
  • It has low maintenance costs.
  • Solar energy can be stored in batteries for later use.
  • It can give you the ability to live grid-free.
  • It is eco-friendly or environment-friendly.
  • Solar technology enhances the value of home or building.
  • PV systems have a long system life span.
  • Solar industry creates more jobs and means of living.
  • It promotes green advocacy of individuals or companies.
  • It helps in promoting the use of electric cars and vehicles.
  • The use of solar energy reduces carbon footprints or emissions.
  • Solar technology is becoming more efficient and advanced year after year.
  • Costs of solar panels are improving and becoming cheaper.
  • Solar energy can supply power to remote areas.
  • It can be used to provide shade to rooftop equipment (AC units).
  • It does not produce noise or disturbances.
  • A Solar PV system is easy to install.
  • It can be monitored online daily or hourly.
Solstrom DCDB, Goodwe Solar inverter with Solstrom ACDB

More Solar Energy Disadvantages

Although solar power is a renewable type of energy source, it also has its own drawbacks. To be fair, we also need to write down the cons of solar energy here. People also need to see the other side of the coin. So, check out the list below for the solar energy disadvantages.

  • Starting costs can be so expensive.
  • Solar PV installation might require large area or space for the system setup or solar panel installation.
  • Shading from trees and other buildings easily disrupts solar energy generation.
  • Solar energy production is highly dependent on the weather.
  • Savings from solar energy can be dependent on the cost of electricity.
  • Improper installation might cause property damage.
  • Improper recycling of materials can cause environmental issues.
  • There is a need for a large battery bank to store solar energy to be used during night time.
  • Installing solar system is not ideal for apartments.
  • There is a potential for pollution to exist during the end of the system’s life.
  • Some solar panels are prone to breakage due to falling debris or hail.
  • There are very limited options for solar system insurance.
  • Additional insurance cost for solar equipment can be expensive.
  • There might be difficulty in finding expert installers.

Final Thought

In conclusion, going solar is definitely a huge decision to make. For people who are planning to install a solar PV system on their own homes or properties, proper research will be necessary. This will not only help them decide, but also it will let them learn about things to do and not to do when it comes to solar energy.

So, let us know in the comments section below if you have anything to add on the advantages and disadvantages of solar energy. You might also want to check more articles about solar energy here:

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