According to reports, National Housing Bank (NHB) and Ministry of New and Renewable Energy (MNRE) today signed a memorandum of understanding (MoU) to channelise subsidy for solar energy usage.
NHB and MNRE have signed the MoU for promoting use of solar water heating and solar lighting equipments in homes.
“Under the terms of the MoU,… NHB will act as a nodal agency for channelising the capital subsidy available under the Jawaharlal Nehru National Solar Mission (JNNSM),” NHB said in a release.
Subsidy will be channelised through retail lending institutions such as banks (commercial, cooperative and regional rural banks) and housing finance companies.
These institutions, in turn, will pass on the subsidy to ultimate beneficiaries with the loan for purchase and installation of approved equipment.
The subsidy would be available up to 30 per cent of the benchmark cost in case of solar heating systems and 40 per cent of the benchmark cost in case of solar lighting systems.
“NHB is also offering refinance support to the retail lending institutions in respect of their loans extended to individuals for purchase and installation of solar water heating and solar lighting equipments in homes.