Foreign cos add solar power to rural economy

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New Delhi, Aug 21: Renewable Energy Development Agency (IREDA).

Under this scheme, public sector banks, scheduled co-operative banks and private banks can extend loans at the rate of 2% per annum for domestic users, 3% for institutional users and 5% for industrial and commercial users, for promoting solar water heating system. Interest differences, with respect to 12.5% for the entire loan repayment period, upto a maximum of five years, is being reimbursed, at the discount rate of 6.5% from IREDA.

However, the prices of solar water are still high compared to conventional electricity-run heaters. In Delhi, while a conventional water heater, with a capacity of 10 litres, would cost between Rs 2000 – Rs 5000, a similar solar water heater would cost close to double the amount.

According the ministry of new & renewable energy, out of the estimated potential for solar water heating systems (140 million square metres of collector area), only 2 million square metres of solar collector area has been installed in the country. Installation of around 2 million square metres collector area has resulted in the saving of around 2 billion units of electricity per year (1000 units electricity being saved per square metre collector area, per year).