Addressing the District Development Board meeting for Srinagar here, Abdullah asked the state Government to formulate projects for solar water heating systems in government departments.
"The Central Government will provide 90 per cent assistance for these projects," he said.
Abdullah said individuals willing to install solar water heating systems in their houses for domestic purpose would get these on subsidy.
"The MNRE will provide seven per cent subsidy on the interest on the loan an individual takes from the bank for installation of such heaters," he said adding adopting new and renewable energy means would relieve the pressure on hydro electricity.
The Union Minister said the state has a good number of streams and brooks on which small hydro power projects up to 25 MWs would be sanctioned and financed by the MNRE on 90:10 ratio.