Soon, solar panel costs to be part of home loan

Soon, solar panel costs to be part of home loan

Aiming to promote solar energy, the Centre is working on a new scheme that will allow banks to fund rooftop solar (photovoltaic) panels as part of the overall housing loans.

As per the plan, being prepared by the Ministry of New and Renewable Energy, lending agencies would offer home loans with the provision of additional sanction of payment if customers want to instal rooftop solar power panels.

“The ministry is finalising the details and is likely to send it to the Finance Ministry for approval. The Finance Ministry may ask the Reserve Bank of India (RBI) to modify the terms and conditions in housing loan schemes by allowing financial institutions to include rooftop solar panel loans as also part of housing loans,” ministry sources told Deccan Herald.

The ministry is also discussing with banks and other financial institutions on giving incentives like attractive interest rates, extended repayment period and waiving of service charges for customers who opt for rooftop solar panels, said the sources.

As the smallest 

1-kw rooftop power plant might cost between Rs 90,000 and Rs 1.25 lakh, the government is working on giving incentives to house-owners to encourage solar energy, said the sources, adding that installing 1-kw solar panels which generates around 4-5 units a day would benefit the owners by reducing the electricity bill.

Union Minister of Power and Renewable Energy Piyush Goyal has recently said that the country would add 1 lakh mw solar capacity by 2019, up from the present capacity of mere 2,900 mw.

To achieve this goal, the government is planning to train around 50,000 people in areas related to solar power generation through industrial training institutes under the national skill development mission.

The Renewable Energy Ministry has also proposed a gross budgetary support of Rs 4,050 crore to set up 25 solar parks of 500-mw capacity each over the next five years in different parts of the country.

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