Ministry of New and Renewable Energy (MNRE) and National Housing Bank (NHB) signed a Memorandum of Understanding (MoU) on 31 March 2014 to channelise subsidy for solar energy usage. The MoU was signed to promote the use of solar water heating and solar lighting equipments in homes, and to provide the subsidy to the beneficiaries.
Under the MoU
NHB will act as a nodal agency for channelising the capital subsidy available under the Jawaharlal Nehru National Solar Mission (JNNSM).
The subsidy will be channelised through retail lending institutions like Banks (commercial, cooperative and regional rural banks) and housing finance companies. These institutions will in turn pass the subsidy to beneficiaries with the loan for Purchase and installation of approved equipment.
The subsidy will be available up to 30 percent of the standard cost in case of solar heating systems and 40 percent of the standard cost in case of solar lighting systems.
The NHB was set up in 1988, as the Apex level institution for housing under the National Housing Bank Act. NHB is wholly owned by Reserve Bank of India, which contributes the entire paid-up capital.
Objectives of NHB
• To promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system.
• To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups.
• To augment resources for the sector and channelise them for housing.
• The Ministry of New and Renewable Energy (MNRE) is the nodal Ministry of the Government of India for all matters relating to new and renewable energy. Ministry of Non-Conventional Energy Sources (MNES) was renamed as Ministry of New and Renewable Energy (MNRE) in 2006.
• Ministry’s broad aim is to develop and deploy new and renewable energy for supplementing the energy requirements of the country.
The Jawaharlal Nehru National Solar Mission was launched in 2010. The Mission has set the ambitious target of deploying 20000 MW of grid connected solar power by 2022. It is aimed at reducing the cost of solar power generation in the country through
• Long term policy
• Large scale deployment goals
• Aggressive Research & Development
• Domestic production of critical raw materials, components and products.