The Goa government has notified the Solar Energy Policy to promote unconventional electricity generation in the coastal state.

The policy, which was notified last week, came into force with immediate effect.

As per the policy, the consumer and the producer of solar power will be entitled to avail benefit in the form of 50 percent subsidy from the state government, a senior official said.

The policy also provides for a penalty equal to five percent of the value of energy committed every day, if power producer fails to complete and commission the project within the given deadline, he said.

It mentions that technological improvements have made the generation of solar energy economically viable and would lead to a reduction in expenditure of the state for the purchase of conventional power from the grid.

Under the policy, the government will provide 50 percent subsidy, including 30 percent share from the Centre, for the capital cost or the benchmark cost provided by the Ministry of New and Renewable Energy (MNRE) or cost arrived through the tendering process by the Goa Energy Development Agency (GEDA).

As per the 2017 policy, prosumers were to be provided a grant of 50 percent of the capital cost as an interest-free loan, which was to be recovered by way of installments after six months from the time the power flows into the grid.

All prosumers who have carried out installation after December 21, 2017, will receive the subsidy and incentives in the amended policy. The policy was notified in December 2017.