MNRE signs Mou with the National Housing Bank (NHB)

The National Housing Bank (NHB) and the Ministry of New and Renewable Energy (MNRE), Govt. of India, have entered into a Memorandum of Understanding (MoU) for promoting the use of solar water heating and solar lighting equipments in homes.

Under the terms of the MoU, signed on 31st March, 2014, NHB will act as a nodal agency for channelizing the capital subsidy available under the Jawaharlal Nehru National Solar Mission (JNNSM). The subsidy will be channelized through the retail lending institutions such as Banks (commercial, cooperative and regional rural banks) and Housing Finance Companies who will, in turn, pass on the subsidy to the ultimate beneficiaries together with the loan for the purchase and installation of the approved equipment. The subsidy would be available to the extent of 30% of the benchmark cost in case of solar heating systems and 40% 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. The refinance product has received encouraging response from the lending institutions.

The capital subsidy offered by MNRE under the JNNSM and channelized by NHB is expected to go a long way in promoting the usage of solar water heating and solar lighting equipments in homes.