Small Solar Prosumers in Goa Will Now Get 50% Subsidy

The subsidy component will be in two parts: 30% by center and 20% by state


The Goa government has approved the amendments in the Goa State Solar Policy – 2017. The policy aims to provide subsidy of up to 50 percent for small prosumers in residential, institutional, and social sector category with solar plants up to 100 kW capacity.

In the earlier policy, the state government was giving a grant of 50 percent as interest-free loans on the capital cost which was to be recovered in installments after a project has been feeding power to the grid for six months.

As per the amended policy, the center will provide 30 percent subsidy which will be credited to the prosumer as per the guidelines of the Ministry of New and Renewable Energy (MNRE). The remaining share of 20 percent out of 50 percent will be provided by the state government. The state subsidy will be released after the solar project injects power into the grid for six months.

The subsidy will be given on the capital cost or the benchmark cost provided by the MNRE or on the cost arrived through the tender process by Goa Energy Development Agency (GEDA), whichever is lower.

The state government will also provide a subsidy for projects of sizes up to 100 kW for the standalone systems, including the cost of battery.

If the prosumer opts for a battery bank for storage and then consumes its generated power on 24 X 7 basis, then he will get the benefit of 50 paisa (~$0.0070) more than the average power purchase cost.

For low tension (LT) consumers up to 100 kW, the energy and solar meter will be rented out on payment of monthly fees by the electricity department of Goa. In case of consumers above 100 kW, the approved meters will have to be procured at their own cost as per the specifications and provisions of the electricity department.

In the previous policy, no conversion of land was needed to generate solar power. The state government has further simplified the land procurement for solar projects. The new policy says – “No town and country planning permission will be required for setting up of a solar farm including the construction for operational space.”

Recently, GEDA had requested for comment from all stakeholders on its proposed amendments of the Goa State Solar Energy Policy-2017.

In November 2018, GEDA published a user manual for an online single window clearance portal that would facilitate the seamless implementation of rooftop solar projects.