CAPITAL SUBSIDY-CUM-REFINANCE SCHEME FOR OFF-GRID SOLAR
OFF GRID SOLAR CAPITAL SUBSIDY SCHEME OF MNREMNRE in consultations with IREDA and NABARD has finalized a list of 11 model projects together with technical and financial parameters appended to these guidelines and these models would be deemed to have been approved by the PAC for financing by the banks.
MNRE has also approved the financing of Flat Plat and Evacuated Tube Collector based solar water heating systems manufactured / installed by the BIS approved manufacturers of the system with the same terms and conditions, by the banks, with capital subsidy and refinance support from NABARD.
All Commercial Banks (including private commercial banks) and Regional
Rural Banks which are eligible to avail of refinance facilities from NABARD would be covered under this scheme subject to their satisfying the eligibility criteria for refinance as may be stipulated by NABARD from time to time. Funds towards meeting the subsidy and refinance requirements under the scheme would be provided to NABARD by IREDA. Projects to be eligible for funding support under the Scheme will need prior approval from the Project Approval Committee of MNRE.
Currently the capital subsidy would be to the extent of 30% of the benchmark cost subject to the boundary conditions indicated in. For the year 2010-11, the benchmark price for photo voltaic with battery back-up is considered as ` 300 per Watt Peak (Wp). In respect of the systems which do not use storage battery such as water pumping systems, the installed PV system cost would be considered subject to a cap of ` 210 per Wp.
Evacuated Tube Collectors (ETCs) based solar water heating systems, capital subsidy will be limited to ` 3000 per square metre of collector area while for Flat Plate Collectors (FPCs) with liquid as the working fluid, the subsidy will be limited to ` 3300 per square metre. For flat Plate Collectors with air as the working fluid, the capital subsidy is
limited to ` 2400 per square metre of collector area.