NT Reporter
Panaji
Solar power installers in Goa on Thursday said that rooftop solar systems will become cheaper by about Rs 25,000 for consumers, following GST rate cuts announced by the Union government.
From September 22, the average GST on rooftop solar systems will fall to 8.9 per cent, compared to the current 13.8 per cent. Solar Power Association of Goa (SPAG) past president Sandeep Naik said that the cost of rooftop systems overall will reduce by 4.9 per cent after tax rationalisation. “The reduction in cost will benefit mainly residential consumers,” he said.
Naik explained that rooftop systems attract dual tax rates. Seventy per cent of the installation cost, for the solar panels, will now attract 5 per cent GST, down from 12 per cent. The remaining 30 per cent, covering installation, cables, and labour charges, will continue to be taxed at 18 per cent. “For off-grid solar systems the GST rate is 5 per cent,” said Naik.
Solar power providers said interest in rooftop systems is growing among Goan residents, even during the monsoon season. Installations are mainly taking place under the PM Surya Ghar Yojana (PMSGY), which provides financial subsidy to consumers. Around 1,200 households have installed rooftop systems so far, creating an estimated 12 MW of capacity.
SPAG said solar power is feasible across the state. To claim subsidy, consumers must apply under the PMSGY central portal and use services of one of the 75 government-empanelled vendors in Goa. The rooftop solar appliance must also be Made in India, as the portal accepts only such panels.
Providers said rooftop installations are economically effective because 50 per cent of the cost is recovered through subsidy and savings are visible immediately in lower electricity bills. However, they pointed out that most installations are in independent houses, not in larger city residential complexes.
