At a time when the Centre is aggressively promoting rooftop solar power as a tool of energy se curity, economic resilience and climate action, the Goa government has allowed its own solar subsidy scheme to lapse, leaving hundreds of applicants stranded while a promised extension awaits official approval. The State subsidy for roof top solar installations has remained in abeyance since March 31, 2026, despite Chief Minister Pramod Sawant as suring the Legislative Assem bly during his Budget speech on March 6 that the scheme would be extended for an other three years. More than four months later, however, the promised notification has yet to be issued. The delay has plunged Goa’s rooftop solar pro gramme into uncertainty, with several applications submitted after March 31 caught in administrative limbo.
Goa Energy Devel opment Agency (GEDA) of ficials have acknowledged that benefits under the revised scheme cannot be processed until the govern ment formally approves and notifies the extension. GEDA Sources said the Department of New and Re newable Energy has already written to the government seeking continuation of the scheme, while the GEDA has framed a revised policy. Yet the file continues to await approval, stalling installa tions and creating uncer tainty among consumers and vendors alike. “It is absurd that the State government is not pro moting the shift towards self-sufficiency, especially in the clean energy sector, at a time when the country is grappling with the West Asia crisis,” said John Dias from Mapusa.
The policy paralysis threatens to undermine years of progress in rooftop solar adoption. According to official figures, 3,928 consumers are al ready registered for rooftop solar systems in Goa, while solar photovoltaic power plants have been installed on 48 government buildings across the State. Until the end of the last financial year, Goa offered one of the most attractive rooftop solar incentive structures in the country because consumers could avail themselves of sub sidies from both the Central and State governments. (See graphic) For many households, the economics were compelling. A typical 10 kW rooftop solar system costs about Rs 6 lakh. Under the earlier subsidy regime, a consumer could receive approximately Rs 78,000 from the Centre and around Rs 2.25 lakh from the State, reducing the effective investment to nearly half the original cost. Given Goa’s electricity tariff structure, a household consuming around 1,000 units of electricity every month would typically pay power bills of about Rs 6,500 a month, or nearly Rs 78,000 annually.
With both subsidies availa ble, the investment could generally be recovered within four years. Without the State subsidy, however, the payback period almost doubles, significantly weakening the financial in centive for prospective adopters and threatening the rapid growth witnessed in recent years. Vendors however are hopeful that the government will extend the State subsidy. “The consumers who have installed panels during this financial year have not yet realised that the subsidy is not coming because it usually takes about four to six months to be disbursed. In a couple of months, the news will spread, and that will completely kill the momentum,” said a stake holder from the solar industry.
Industry players say the government risks squandering a rare success story in public policy. Founding Director of Anmax Energy Anant Kochhar said, “Solar power is economical and clean. We generally recom mend that consumers install a 10 kW rooftop solar system at their residences.” According to empanelled vendors, rooftop solar systems start becoming financially attractive when household con sumption exceeds 200 units per month. For consumers us ing more than 300 units, the economic case becomes even stronger. Sanket Angle of J N Solar Power LLP said awareness about rooftop solar systems has grown substantially in re cent years. “The State and Central subsidies have helped drive the market penetration of solar panels.
The subsidies are usu ally released within six months,” said Angle. “Even during adverse weather conditions, solar panels are capable of generating nearly 50 per cent of their usual power output,” he added. Sun360 founder and CEO Anish Sousa said consumers continue to derive significant long-term value from invest ing in rooftop solar systems. “The State subsidy has undoubtedly accelerated adop tion, but rooftop solar remains a financially attractive investment for many households. With electricity costs expected to rise over time and solar systems lasting more than 25 years, consumers continue to benefit from sub stantial long-term savings,” he said. “We have installed more than 1,000 solar systems across the State, and many consumers have already recovered their investment through savings on electricity bills,” he added. “The way the net metering system works is that, at the end of the financial year, the units consumed from the grid are adjusted against the units generated by the solar pan els on your rooftop. If the units generated exceed the units consumed, the government purchases the surplus power at the rate of Rs 3.8 per unit,” explained Sousa. “If the consumer opts to go partly off-grid, they would need to invest in batteries and an inverter, which for a 10 kW system would typically cost an additional Rs 3 lakh. This makes particular sense when there are different tariffs for different times of the day.
Consumers can then use their battery reserve during peak tariff periods and switch back to grid power when rates are lower,” Sousa added. On the lifespan of each component, Sousa said, “General ly, solar panels last for about 30 years, while batteries and inverters have a lifespan of around 10 years each.” Ayrito George from Ambaji-Fatorda, who has installed a rooftop solar system, said, “I have installed rooftop solar systems at both my residence and my shop, and the elec tricity bill is minimal. I receive monthly bills of around Rs 250 for my house and Rs 290 for my shop. I invested about Rs 6.45 lakh, of which nearly 50 per cent was recovered through government subsidies.” Atmaram Desai from Sankhali said, “If I produce excess power, the government purchases the surplus electricity generated by me at a lower rate under the net metering system.” But not everything is about economic viability. Many ear ly adopters made the switch for environmental reasons. Savio Figueiredo from Saligao said, “I installed a 4.4 kW system in January 2020. I paid about Rs 3.2 lakh at the time and received a State subsidy of Rs 1 lakh. Back then, I did it purely for environmental reasons, and I still have not got ten around to checking whether I have broken even.”
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