Solar System Financing in Pakistan 2024

With electricity prices in Pakistan reaching high in history, households and businesses are struggling to manage their monthly bills, making the shift to alternative energy sources increasingly attractive. Solar energy, in particular, has emerged as a viable solution, to cut down on electricity expenses while also contributing to environmental sustainability. However, the initial cost of solar installation can be high, which is why several banks in Pakistan have introduced financing options to make solar energy accessible to a broader population.

Through flexible Solar Financing in Pakistan from institutions like Meezan Bank, Allied Bank, Bank Alfalah, Faysal Islami, and JS Bank, individuals and businesses can now install solar panels on installments plan. In this article we discussed these solar financing programs, providing essential details on eligibility, benefits, and unique features to help prospective customers make rational decisions.

Solar Panels on Installments

Meezan Bank

Meezan Bank’s Solar Panel Financing Program offers Shariah-compliant financing options to help homeowners invest in renewable energy while significantly reducing their electricity bills. Available exclusively in Karachi, Lahore, and Rawalpindi/Islamabad, the program provides flexible payment plans, competitive pricing, and expert guidance.

Eligible applicants include salaried individuals, business owners, and pensioners, each with specific criteria regarding age, income, and employment status. The financing amount ranges from PKR 100,000 to 2,500,000, with tenures between 12 to 60 months. The program aims to promote clean energy and sustainability in Pakistan.

Meezan Bank Solar Panels Installments Plan

CategoryDetails
Program OverviewShariah-compliant solar panel financing to promote clean energy and help homeowners save on electricity bills.
LocationKarachi, Lahore, and Rawalpindi/Islamabad.
Benefits– Lower monthly electricity bills by up to 50%.
– Flexible payment plans.
– Competitive pricing.
– Expert guidance throughout the process.
Eligibility Criteria
Salaried Individual (Permanent)Nationality: Pakistani, adult, permanent resident, CNIC holder.
Age: 20 to 60 years (co-applicant up to 75 years).
Income: Min. PKR 100,000/month.
Job Tenure: Min. 2 years.
Tax: Active tax payee with NTN.
Account: Must have a Meezan Bank account.
DBR: 40% (new/ <12 months credit), 45% (established ≥12 months credit).
Salaried Individual (Contractual)Income: Min. PKR 200,000/month.
Job Tenure: Min. 3 years with current employer; 5 years overall.
Other Criteria: Same as permanent job.
Business IndividualAge: 30 to 65 years (co-applicant up to 75 years).
Income: Min. PKR 500,000/month.
Business Tenure: Min. 5 years.
Tax: Active tax payee with NTN.
Account: Must have a Meezan Bank account.
DBR: 30% (new/<12 months credit), 35% (established ≥12 months credit).
Pension IncomeAge: Max. 70 years (co-applicant up to 75 years).
Income: Min. PKR 100,000/month.
Tax: Active tax payee with NTN.
Account: Must have a Meezan Bank account.
DBR: 40% (new/<12 months credit), 45% (established ≥12 months credit).
Product Details
Islamic FinancingBased on the concept of Musawamah.
InstallmentsUnequal monthly installments.
DiscountsSpecial discounts for premium customers.
Financing Tenure12 to 60 months.
Allowed Capacity1KW to 1000KW.
Financing AmountPKR 100,000 to 2,500,000.
CollateralHPA on solar panel and three cheques.
Property OwnershipProperty must be owned by the applicant or an immediate family member.
Down PaymentOn-Grid System: 15-50% (depending on credit history).
Off-Grid System: 30-50%.
Takaful and After-SaleRisk and reward transfer to the customer after executing the Musawamah contract, with after-sale services handled between the customer and the selected energy partner.

Allied Bank

Allied Solar System Finance offers a sustainable financing solution for individuals looking to invest in solar energy systems. With loan amounts ranging from PKR 200,000 to PKR 3,000,000 and a competitive 6% mark-up rate under the SBP refinance scheme, customers can enjoy flexible repayment periods of up to 7 years. Eligibility requirements include being a Pakistani national aged 21 to 59, with specific criteria for salaried and self-employed individuals regarding income and banking relationships. Required documentation includes CNIC copies, income verification, and proof of property ownership. The program aims to help customers reduce electricity costs while contributing to a greener future, making it an excellent opportunity for those interested in sustainable energy solutions.

Allied Solar System Finance Overview

CategoryDetails
Program GoalEmpower individuals to generate clean electricity, reduce electricity bills, and promote sustainability.
Loan AmountPKR 200,000 to PKR 3,000,000.
Mark-Up Rate6% under SBP refinance scheme.
Repayment PeriodFlexible repayment period of up to 7 years.
Personal EquityMinimum 30%.
Property OwnershipCan be solely owned by the applicant or jointly with family members.
FeesNo hidden costs; processing fee applies after approval.
Eligibility Criteria
General Requirements– Pakistani national.
– Age: 21 to 59 years.
Salaried Individuals– Permanent employment for at least 2 years.
– Minimum net salary of PKR 50,000.
– Minimum 6 months’ relationship with ABL or another bank.
Self-Employed Individuals– Minimum 2 years in business with ABL; 3 years with another bank.
– Minimum net monthly income: PKR 75,000 (ABL) or PKR 100,000 (other bank).
Required Documents– CNIC copies of applicant and co-owner(s).
– Two recent passport-sized photos.
– Income documents (salary slip, bank statements, etc.).
– Proof of property ownership.
– Account maintenance letter (if applicable).
– Proprietorship letter (if applicable).
– Personal guarantee and disclaimer from co-owner(s) (if applicable).
– Partnership deed (if applicable).
– Quotation with survey report from approved solar vendor.

Bank Alfalah

Bank Alfalah Green Energy provides a term finance facility designed for customers interested in installing solar energy systems with capacities ranging from 4 KW to 1000 KW, including net metering options. The program offers customized financing solutions, affordable mark-up rates, and a repayment tenure of up to 5 years, with a grace period of 3 months. Eligibility criteria include a clean e-CIB report and proof of business longevity, while specific conditions apply for agribusiness customers. The financing requires a down payment, and security measures include hypothecation of equipment and personal guarantees. Loan amounts can reach up to PKR 400 million per borrower, and processing charges are outlined in the bank’s Schedule of Charges. Overall, this initiative aims to promote renewable energy adoption while offering flexible financing options.

Bank Alfalah Solar System Finance Overview

CategoryDetails
Program GoalProvide financing for the installation of solar energy equipment to generate electricity (4 KW to 1000 KW) with net metering.
Features and Benefits– Customized financing solutions.
– Affordable mark-up rates.
– Repayment tenure of up to 5 years.
– Limit enhancement facility.
– Replacement financing post pay-off.
– Applicable for commercial, SMEs, and agribusinesses.
Eligibility Criteria– Clean e-CIB report.
– Proof of being in business for at least 3 years (not applicable for Agri customers).
– Utility bills of the last year (not applicable for Agri customers).
– Non-objection certificate from all owners in case of joint property.
– Installment amount should not exceed 20-30% above the 3-month peak bill average (not applicable for Agri customers).
– Load applicability assigned by DISCO & vendor survey report.
SuppliersMust be registered with the Alternative Energy Development Board; payments are made only to pre-approved vendors/suppliers.
Mark-up RateVariable rate linked with Kibor + Spread, as approved by the authority.
Frequency of Payments– Principal: Monthly/Quarterly/Bi-Annually.
– Mark-up: Monthly/Quarterly.
Financing TenureUp to 5 years, with a 3-month grace period.
Down Payment– Self-owned premises & Agri facilities: 20%.
– Rental & leased facilities: 25%.
Security Requirements– Hypothecation of equipment.
– Personal guarantees.
– Security cheques.
– Insurance.
– Mortgage of property or cash equivalent securities (case-dependent).
Limit Caps– Rental premises (residential customers): above PKR 2.5 million.
– Owned premises (residential customers): above PKR 4.0 million.
– SMEs & commercial businesses: above PKR 10.0 million.
– Agri customers: collateral equivalent to the loan amount required for all cases.
Maximum Loan AmountPKR 400 million per single borrower.
Processing ChargesAs per the Schedule of Charges (SOC).
InsuranceCharged upfront with down payment for the first year; built into installments for subsequent years.

Faisal Bank

Faysal Islami Solar Solutions offers a Shariah-compliant solar financing option designed to help customers reduce electricity costs through the Islamic financing structure of Diminishing Musharakah. This program allows individuals to finance complete solar panel systems with amounts ranging from PKR 100,000 to PKR 3,000,000 at a fixed profit rate of 6% per annum. Customers can choose flexible repayment tenures of 1 to 7 years, with monthly installments commencing after asset delivery and installation. The financing is applicable for solar capacities between 4KW and 20KW, and it includes a non-refundable processing fee and a minimum equity requirement of 15%. Eligible applicants must be aged between 21 and 60, with specific income requirements based on their employment status. To apply, customers can visit bank branches or use the designated contact methods. This initiative promotes sustainable energy solutions while adhering to Islamic financial principles.

Faysal Islami Solar Solutions Overview

CategoryDetails
Program GoalProvide Shariah-compliant solar financing under the Islamic structure of Diminishing Musharakah.
Financing Options– Minimum financing: PKR 100,000
– Maximum financing: PKR 3,000,000
Profit RateFixed profit rate of 6% per annum.
Repayment Structure– Fixed and equal monthly installment plan.
– Installments start after asset delivery and installation.
Financing TenureFlexible tenure ranging from 1 to 7 years.
Allowed CapacityFinancing applicable for solar capacities between 4KW to 20KW.
Processing FeeNon-refundable processing fee of PKR 6,000 plus FED (fixed).
Equity RequirementMinimum 15% of the asset amount required as equity.
Takaful CoverageTakaful coverage from reputable companies on the bank’s panel.
Co-Partner FacilityCo-partner facility available.
Brand PartnersPartnership with reputable alternate energy solution providers registered by the Alternative Energy Development Board.
Eligibility Criteria– Age: Minimum 21 years and maximum 60 years.
– Minimum income requirement:
– Salaried individual: PKR 100,000
– Self-employed individual: PKR 150,000.
Application Process– Visit Faysal Bank branches or contact the call center at 021 111 06 06 06.
– Alternatively, SMS “ISS” space “City Name” space “CNIC” to 9181.

JS Bank

JS Smart Roshni Solar Solution Financing offers a practical financing option to help small and medium enterprises (SMEs) in Pakistan manage energy costs through solar panel installation. With financing amounts ranging from PKR 500,000 to PKR 10,000,000, businesses can benefit from equal monthly installment repayment plans over terms of 3 to 7 years. The program requires a minimum equity of 20% and mandates insurance for the solar solution. Eligibility criteria include being a Pakistani national, running an active business for at least one year, and providing proof of property ownership or a non-objection certificate if the property is leased. Collateral and a personal guarantee are necessary, and applicants must demonstrate good credit and financial ability. Through this program, JS Bank enables businesses to reduce their energy costs sustainably, focusing on growth and operational efficiency.

JS Smart Roshni Solar Solution Financing Overview

CategoryDetails
Financing RangePKR 500,000 – PKR 10,000,000
Equity RequirementMinimum 20% of the total solution quotation value
Collateral RequirementsHypothecation of energy solution (through JS Bank-authorized vendors), personal guarantee, and post-dated cheques
Repayment StructureEqual monthly installments (EMI)
Insurance RequirementMandatory insurance for solar solution
Financing Tenure3 to 7 years
Processing FeeAs per JS Bank’s Schedule of Charges (SOC)
Eligibility Criteria– Pakistani national
– Business operation for at least 1 year
– Proof of property ownership or NOC if rented
– Satisfactory credit history
Additional RequirementsCompliance with SBP’s Prudential Regulations for SME

Conclusion

Solar system financing in Pakistan has become more accessible, with leading banks offering tailored solutions to meet diverse customer needs. Programs like Meezan Bank’s Shariah-compliant financing and Faysal Bank’s Diminishing Musharakah structure cater to those seeking Islamic financing, while Allied Bank, Bank Alfalah, and JS Bank provide inclusive, structured financing for both residential and commercial solar installations. These initiatives not only ease the financial burden of solar adoption through flexible repayment plans and low-interest rates but also promote sustainable practices by empowering customers to generate renewable energy and reduce electricity costs. Additionally, the variety of loan tenures, down payment options, and collateral requirements make it feasible for individuals and businesses alike to shift towards cleaner energy. By supporting green energy, these financing options contribute to Pakistan’s commitment to a more sustainable and resilient energy future.

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