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Capital Subsidy-cum-Refinance Scheme for Installation of Solar Off Grid and Decentralised application under JNNSM of the Ministry of New & Renewable Energy, Gol - Solar Water Heating System

Please refer to our letter No.  NB.ICD/ GSS / 1181/ JNNSM-1/ 2011-12  (Circular No.147 /ICD-36/2011) dated 03 August 2011 on the captioned scheme. The above scheme has since been extended by MNRE, Government  of India for the year 2013- 14 with few changes and hence such systems where loan are sanctioned by banks during 01 April 2013 to 31 March 2014 are eligible for subsidy subject to the terms and conditions of the scheme. The details of revised parameters are provided in Annexure-1

1. If the entrepreneur opt for soft loan instead of capital subsidy, you may avail concessional rate of refinance from NABARD against such cases at the rate of 2 % under the existing procedure.  Banks will however charge 5 % interest to  borrower.

1. A few Banks/ our  Regional Offices had earlier  sought clarification  on calculation of exact quantum of capital subsidy for various capacities of Solar Water Heaters eligible under the scheme. In this connection we advise as  under:-

a)          Solar Water Heaters with any capacity (ie., even beyond 400 LPD also} are eligible for subsidy. Users are classified as domestic (up to 500 LPD) and commercial (above 500 LPO). Accordingly subsidy  will be restricted up to  500 LPD for domestic users and above 500 LPD, the users will be treated as commercial.

b)          A ready reckoner on easy calculation of eligible subsidy for all capacities of Solar Water Heaters is enclosed (Annexure - la & lb)

1. Further, it is also clarified that the new rates indicated in  the Annexure  -I (a)  & l(b) are effective from 01 June 2013 and for SWH units sanctioned up to  31 May 2013, the old rates may be followed in calculation of   subsidy.

1. You may please give wide publicity for the scheme.

(A

Chief General Manager

Encl : As above

Annexure - I

Solar Water Heating Systems scheme under JNNSM of MNRE, Government of India, implemented through NABARO

1. Calculation of capital subsidy for  the period up to 31 May 2013 (Since inception)

_                                                                           (Amt. in.Rs.)

Type of sytem

Evacuated Tube

Benchmark                                                      Maximum subsidy

cost per sqm       All typeof users in General             Dometk and Institutional users

category States and              \           in special category States 

I commercial users in special                   (60 % of Benchmark cost) category States (30 % of  3000 benchmark cost)

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Note : Eligible subsidy would be at 30 % of actualcost of the system or maximum subsidy as indicated above whichever is less

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1. Calculation of capital subsidy for the period from 01 June 2013 to 31 March 2014

2. For the period from 01 June 2013 to 31 March 2014, there are two types of users ie., up to 500 LPD(Domestic) and above 500 LPD (Commercial)

Annexure - I a

Solar Water Heating System - Calculation of subsidy

Users are categorised into two types - Domestic (Up to 500 LPD)  and Commercial (above 500  LPD)

States are divided into two groups - General Category States and Special category States (viz., Himachal Pradesh, Uttarakhand, Jammu & Kashmir and NER sates)

Evacuated Tube Collector (ETC) model[...]

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