Commercial Banks Give Priority to Solar Water Heater
Solar Water Heaters in India are growing at an average growth rate per year of more than 16% driven by the following factors
- Growing urbanization and buildings of new homes
- Save Electric expenses
- Government helps for this Eco Friendly product.
- Comfortable swimming pools
The market for water heating system in India is around $250 million annually and solar water heaters have managed to cover more than 35% of the market showing that solar water heaters are now a part of the mainstream due to its cheaper budget. Many solar products are starting to become more popular as their price competitiveness increases every year. Solar Panels which are the most widely used solar product have seen the price come down by almost 85% in the last few years.
Bank cuts lending rates on Solar Heater Loans
The Corporation bank offers home loans of up to Rs 55 lakh at base rate of 10.25 percent for all tenors. For loans of above Rs 55 lakh, the interest rate is 10.50 percent. India’s JNNSM Solar Policy has set out ambitious target for Solar Water Heater Installations at 8 million square meters in 2013 and 22 million in 2020.
Capital subsidy equivalent to upfront interest subsidy Rs. 1900 per sq. m. for registered institutions and Rs 1500 per sq. m. of collector area to registered commercial establishments and for housing complexes Rs. 2000 per sq. m. of collector area.
Interest Loan Subsidy -86% of the cost of the project will be provided loans for 5 years from IREDA/Banks at 2% for domestic users,3% for institutional and 5% for commercial users (no accelerated depreciation allowed. Banks too get an incentive of 1% of the loan. Around 32 Banks are supporting the interest subsidies. Note like for Solar Panels, NE states, hilly states and Islands get additional subsidies, in this case 0% loans.
Please note that MNRE gives subsidies and grants to municipal corporations, solar heater installers and banks to promote the use. Now a day, in India: Commercial Banks Give Priority to Solar Water Heater incase of term loans. We also assist in getting loan from commercial banks in order to purchase and installation Solar Water heating system.
Make your Budget for Solar Water Heater today!
The largest player market share is under 15%. There is no popular solar water heater companies or brands Inter Solar is known somewhat. The solar water system cost for a residence varies from Rs. 30000 to Rs. 80000, depending on technology and capacity. The standard is Rs.20000- 25,000 for a 100 liters capacity system and Rs.120-160 per installed liter for higher capacity systems.
In India for promotion of Solar Water Heater system, Government instructs many commercial banks to provide loans in order to encourage in saving Electricity resources according to increase rate of population per year.