1. “Issues and Challenges for Integrating Renewable Energy Technologies in Building Design” Vishal Goyal Assistant General Manager National Housing Bank January 29, 2014 1

2. Projected TimelineDemographic Changes By 2050World’s population will reach 9 Billion By 205070% of the world’s population will live in urban areas, up from 50% today By 203040.8% of India’s population will be living in urban areas (current 28.4%), increasing to 50% by 2041  Housing sector accounts for nearly 40% of energy consumption  Populations in emerging markets are creating a huge demand for homes that need to be both affordable and green 2

3.  Energy efficient housing balances all aspects of energy use in a building  Lighting  Space utilization  Ventilation  Use of energy efficient building materials  Use of energy efficient equipment  Use of alternative and renewable sources of energy  Reducing energy demand at source  More sustainable in long run  Often with little incremental cost 3

4. National Urban Housing & Habitat Policy (NUHHP) 2007  Appropriate ecological standards for healthy environment and better quality of life.  Implementing the concept of ‘green’ and ‘intelligent’ buildings. “Strong recognition of financial sector’s crucial role in integrating climate considerations and sustainability into their operations” 4

5.  Statutory body  National Housing Bank Act, 1987  Vision: “ Promoting inclusive expansion with stability in housing finance market”  Mission: "To harness and promote the market potentials to serve the housing needs of all segments of the population with the focus on low and moderate income housing "  Objectives:  Objectives: “ To operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support incidental to such institutions and for matters connected therewith …” (National Housing Bank Act, 1987) 5

6.  Functions o Financing o Regulatory and Supervisory o Promotional Aimed at confidence-building among Savers, Borrowers, Lenders and Investors; Policy Makers and International Stakeholders Multi-pronged Simultaneous intervention on both the demand (financial) and supply (real) side of the housing sector Multi-Agency Financing a range of institutions for extensive outreach. 6

7. RefinanceDirect Finance Equity Participation Term Loans  Commercial Banks  Housing Finance Companies (HFCs)  Cooperatives Term Loans  Housing Corporations  Societies  PPPs  Self Help Groups Equity stake  Rural HFCs  HFCs involved in housing finance to low income segments for  General Housing  Rural Housing  Special projects (in natural disaster affected areas) 7

8.  NHB’s Energy Efficient Housing Refinance Scheme for the Primary lending Institutions (in partnership with KfW, Germany for the line of credit) and;  NHB’s Refinance Scheme for installation of solar water heating and solar lighting equipments  MNRE and NHB proposed to sign MoU on Refinance cum Capital Subsidy for Solar Equipment Financing. 8

9.  Important step forward in promoting use of energy efficiency techniques in buildings  Programme initiated jointly by NHB and KfW, German Development Bank in 2008 pursuant to Indo - German Government-to-Government negotiations  Prime objective of the Programme – Promoting Energy Efficient Residential Housing  First of its kind of programme in India 9

10.  Line of Credit of € 50 million on 31st Dec’2010.  Technical assistance grant of €1.5 million.  The Programme  Financial and technical assistance to stakeholders to promote EE residential housing  Financial assistance - housing loans to individual borrowers through retail lending institutions for purchase / construction of EE residential houses / flats  Technical assistance – Fraunhofer TERI Assessment Tool to calculate the level of energy savings of EE houses on the baseline (developed by TERI / Fraunhofer) 10

11.  Initial implementation - facilitator appointed to assist NHB  Identification of EE building projects  Identification of retail lending institutions  Assessment of refinance potential for NHB  Gathering of borrower information  Assistance in energy calculation & certification  Compliance with NHB’s reporting requirements to KfW  Launching of logo and website for the programme – ee- homes.com  Signed MoU with IGBC and AdARSH 11

12.  NHB has utilised the entire sanctioned amount of € 50 million i.e. equivalent to INR 381.53 crore  12 Projects comprising of 162 towers consisting of 21,577 residential units have been certified in the cities of Lucknow, Nagpur, Mumbai, Bangalore and NCR  2065 individual loans have been refinanced by NHB  Energy Savings of 1,864 MWh/p.a. and has avoided CO2 emissions of 32,800 tons per annum  LICHFL, Axis Bank, ICICI Bank, HDFC, DHFL, and Tata Capital have availed Refinance from NHB under the Programme 12

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14.  Reduction in energy usage without compromise on comfort  Building of sustainable housing and habitat to positively impact society and environment  Availability of funds - source for encouragement  Lenders  Borrowers  Availability of assessment tool - help to developers 14

15.  Launched on the Occasion of NHB’s Silver Jubilee year with the agenda to promote the use of solar equipment in the domestic context so as to conserve energy and reduce dependence on fossil fuels.  Scheme Details are as below: Purpose: To provide refinance assistance in respect of loans extended by PLIs for:  purchase and installation of solar water heating systems  purchase and installation of solar lighting systems 15

16.  Eligible Loans ▪ Loan size - upto 50,000 per equipment ▪ Location - Rural / Urban ▪ Date of origination of loan - Loans disbursed on or after 01-07- 2012 ▪ Tenure - 3 years to 7 years  Type of Interest Rate - Refinance under the Scheme will be extended at rates of interest which shall remain fixed for the entire tenure. Impact: Since the launch of the scheme, 18440 equipments have been installed and refinance to the tune of 31.04 crore 16

17.  Lack of awareness  Perception  Energy efficiency is expensive requiring huge upfront investments  Marketing gimmick of developers  High maintenance cost  Lack of awareness and information about Government schemes promoting use of solar energy, etc. 17

18.  Absorption capacity / consumption of EE products / market for EE residential housing in India to be enhanced / encouraged  Scalability important due to challenges  Cost aspects  Huge housing shortage  Existing housing  Present product for niche market segments  Programme to be expanded to include existing housing units Next Steps 18

19. Sahara City Homes Nagpur Savings – 26% Number of Units – 2,646 19

20. BCIL ZED Collective, Bangalore Savings – 40% Number of Units - 44 20

21. BCIL ZED Woods, Bangalore Savings – 33% Number of Units-60 21

22. Lotus Panache, Noida Savings – 21% Number of Units – 4,048 Lotus Boulevard, Noida Savings – 20% Number of Units – 2,224 3C Projects 22

23. HIRCO, Mumbai Savings – 34% Number of Units – 1,212 23

24. Solar Panels being installed in the dwelling units in a non-electrified village of U.P. under the Refinance Scheme for installation of solar water heating and solar lighting equipments of NHB 24

25.  Energy efficiency - priority area for Government and policy makers  NHB-KfW partnership - new initiative with huge scope  Solar Refinance Scheme is expected to go a long way towards improving the penetration and usage of solar lighting and solar water heating equipments in homes.  Finance - an important tool for promoting energy efficiency in buildings  Scalability - an important factor  Multi-pronged approach to overcome barriers To Summarize 25

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