final chapter 6

36 Introduction Urban, Industrial and Commercial Applications are to provide alternative energy solutions through the following broad programmes: l Solar thermal and photovoltaic devices and systems l Energy recovery from urban, industrial and commercial wastes l Biomass energy and co-generation in industry 6.2 The accelerated scheme on development and deployment on solar water heating systems aims at installation of 1.0 million sq.metre collector area up to March 2007, with 4 lakh sq.metre. to be installed during the current year. The interest subsidy for all categories of users, including domestic, institutional and commercial has been increased to make loans available at interest rates between 2 to 5%. A large network of banks and financial institutions are being involved in the implementation of the scheme. An extensive publicity campaign has been launched to popularize use of solar water heaters. The States and Municipal Corporations are being advised to introduce mandatory use through amendment of building bye-laws; rebates in property tax and electricity bills etc. 6.3 Akshay Urja Shops are being supported for sale and service of renewable energy devices/systems. The shop network is being expanded by inducting entrepreneurs and NGOs for setting up such shops in all districts of the country. Subsidised soft loans are being made available for the purpose and monthly recurring grants and incentives are being provided for a limited period towards running costs. About 500 Akshay Urja shops are to be set up be March 2007, including 200 during the current year. 6.4 Accelerated Programmes on Energy Recovery from Urban, Industrial and Commercial Wastes have been formulated such as one for power generation from Municipal Solid Wastes (MSW) based on production and combustion of Refuse Derived Fuel (RDF). Financial Assistance ranging between Rs.1.5 crore to Rs.3.00 crore per MW will be provided for such projects. 6.5 In order to accelerate pace of deployment of energy recovery from industrial and commercial wastes, a modified scheme has been introduced provding subsidy ranging between Rs.50 lakh and Rs.1.0 crore per MW, depending on technology and end- use application. 6.6 For harnessing potential for captive energy generation in industry, subsidy ranging between Rs.20 lakh and Rs.1.5 crore per MW is being given for non-bagasse biomass power, cogeneration projects and gasifier systems depending on technology and end-use application. The scheme has been extended to institutions as well. 6.7 SOLAR ENERGY IN URBAN AREAS & INDUSTRY The main objectives of Solar Energy for urban, industrial and commercial applications are as follows: i. To promote the widespread use of solar water heaters through a combination of financial and promotional incentives, and other support measures, with a goal of adding another one million sq. m. of solar collector area through solar water heating systems in the next two years. ii. To accelerate widespread use of solar thermal systems for air heating and steam generating applications, as well as use of solar passive techniques in building design, through a combination of financial and promotional incentives. iii. To reduce/conserve the consumption of conventional energy through saving of electricity and fossil fuels in buildings, industrial and commercial establishments. iv. To support the creation of a network of retail outlets in form of “Akshay Urja Shops” in all the districts for sale and serv ice of solar energy and other renewable energy products. v. To demonstrate effective alternate solutions for community/ institutional low power solar based systems in urban areas. vi. To create awareness about the benefits of photovoltaic devices/ systems in urban areas. 6.7.2 Solar Water Heating Systems To promote large-scale use of solar water heating systems in the country, a scheme for accelerated deployment of solar water heating systems was launched during the year for installation of 1.2 million sq. m. of collector area during the next two years. Under this scheme, subsidised soft loans have been made available to users through IREDA covering a large network of banks/ Financial Institutions (FIs), including private, public and co-operative banks. These loans are available at an interest rate of 2%