Subsidy to energise solar power sector

Panaji: The state government has fixed Rs 27,000 per kw as subsidy to solar power consumers, who have  grid-connected solar rooftop system with net metering.

The subsidy amounting to 50 per cent of the capital cost of the project is for domestic users – residential producers-cum-consumers (prosumers) and for non-profit making education institutes.

For commercial establishments in the state, the government will  give  20 per cent of the capital cost of the solar installation as subsidy, which works out to Rs 10,800 per kw.

The subsidy has been worked out on the benchmark cost of Rs 54,000 per kw set by the Union ministry of new and renewable energy, government sources said, disclosing that Rs 2  crore has been  earmarked towards the payment of the subsidy.

The subsidy will be disbursed under first-come-first-served basis by the Goa Energy Development Agency, which is the implementing agency for all renewable energy.  

Last week the government notified the scheme for promotion of grid-connected solar rooftop system with net metering system. The scheme aims to promote generation of solar power by providing one-time financial assistance for reimbursing the capital cost incurred at the time of installation.

All prosumers with solar power installations after December 21 2017 are eligible for subsidy provided their buildings or houses  are registered with the panchayat or municipality and have permanent electricity connections. 

The subsidy is only for solar power installations that are low tension  and with capacities ranging from 1kw-90kw.

The state has a target of 150 mw of solar power generation capacity by 2022 which the government plans to achieve by promoting solar photovoltaic (PV) rooftop grid-connected systems with net metering, says the scheme.

As per the scheme, the subsidy will be released six months after solar power is injected into the grid. Further, the GEDA shall be entitled to government grants based on the estimate approved by the state in the budget.

The budgetary grant provided to the GEDA should be utilised within the financial year and only for the purpose for which it is sanctioned. Any portion of the grant, which is not ultimately required, will be refunded back to the government, says the scheme.

The state currently generates approximately 5 mw of solar power from big and small projects. Of this, 1.5 mw is generated by individuals and 2.5 MW by industry and establishments.

Large installations of solar power projects are by companies such as CIPLA and ONGC both of which have one MW plant each.