With Prime Minister Narendra Modi bullish on greater usage of unconventional sources of energy, especially solar energy, the Ministry for New and Renewable Energy (MNRE) is learnt to be in talks with the Finance Ministry for incentivising home loan seekers to install roof-top solar panels.
Sources privy to the development told The Pioneer that discussions between the banking division of the Finance Ministry and MNRE are being held on exploring the possibilities whether a small component of home loans could be earmarked for setting up solar panels on under construction houses. This step can go a long way in incentivising greater installation of solar panels on roof-tops.
A 1 kw of solar PV installation roughly costs under Rs one lakh and generates 4 to 5 units a day. Such installations take up roof space of about 10 to 12 square metres, informed industry experts.
Though talks between the two departments are at a nascent stage, sources informed that the provision are being seriously considered and could fructify into a concrete proposal at a later stage as considering the dedicated focus of the Centre on improving new and renewable energy generation in the next five years.
The Financial Services Department of the Finance Ministry will have to take a final call as to what percentage of the home loan will have to be offered to customers for encouraging them to install roof-top solar panels, sources further informed.
Minister for Power, Coal and NRE Piyush Goyal had recently announced that by 2019 the UPA Government plans to take solar power generation to 1 lakh mw, which is currently a paltry 3,000 mw. For this the Government is expecting investments in the renewable energy sector to up to $50 billion by the time its tenure ends.
In a recent interaction with media persons, Goyal had said that the Government was hopeful of generating an investment worth $250 in the overall power sector, out of which $50 billion could come for the new and renewable energy sector.
Gujarat, during Modi's tenure as Chief Minister of the state, had set up a 1 mw solar project on Narmada branch canal network, which was connected to the national grid.During a global event held earlier this month, Goyal had said that the focus of the Government is to improve the bankability of solar power purchase agreements as subsidies are a thing of the past.
Amid falling interest rates and foreign exchange rates stabilizing, the cost of capital for renewable projects will gradually come down, he had said at that time.looking at this scenario, the Government has increased the target of solar generation to 100,000 mw by 2022.