Solar Financing Pakistan

Solar Financing in Pakistan

Curious about Solar Financing Pakistan? Solar financing in Pakistan is a major step taken by the State Bank of Pakistan. This is to help people switch to solar energy and contribute to a better future. We are going to explore this program in detail. We will discuss its scope, eligibility criteria and various other things.

We will also discuss different financing programs offered by various banks under this scheme. You will also get to know about their markups, pre-requisites and other important information. Contact us right now if you want to switch to solar. We can help you in documentation and attainment of solar financing under this scheme.

Overview of Solar Financing Program in Pakistan

Under the SBP Solar Refinancing Plan, the State Bank of Pakistan launched Solar Finance Pakistan. This program enables you to obtain finance for your solar system in the range of Rs. 500000 to Rs. 10 Million PKR. In 2016, SBP released updated standards for SBP renewable energy finance in Pakistan. This solar financing program aims to incentivize individuals from the commercial, residential, agricultural, and industrial sectors to make investments in renewable energy sources. We can help our customers buy solar energy systems in Pakistan on convenient monthly installments thanks to solar financing in Pakistan.

Scope of the Program

The program aims to help residents, business owners, agriculturalists, industrialists and any one belonging to any sector switch to solar energy. Understanding the financial constraints is one of the major road blocks that is slowing down the adoption of renewable energy. In order to play its role in the national development and in creating a good future, State Bank of Pakistan has taken this step. It aims to provide financing to various sectors through local banks at an easy markup so it is easier for people to switch to solar.

Eligibility Criteria

The eligibility requirements for this program have been maintained relatively simple and manageable in order to support its original goal of encouraging more individuals to adopt renewable energy by making it more accessible. The sole prerequisites included in the eligibility criteria to get solar financing in Pakistan are these two:

Must hold a Computerized National Identity Card (CNIC)
Must be the owner of the business, and the house where the solar panel system is to be installed

Mark Up Rate

The basic idea behind the program is to make it easier for people to switch to solar. It can be achieved if the mark up rate is so high that it becomes a hassle for people to pay back the financing. In order to keep it in accordance with the aim of the program, the markup has been set to be very economical. Another interesting thing here is that the mark up is divided into two equal parts. One goes to SBP and the other one belongs to your bank. Based on your relationship with your bank, you can negotiate a lower rate as well.

Rate of Refinance	Maximum Bank / DFI’s spread	Maximum rate for end user
3.00%	3.00%	6.00%

Banks Offering Solar Financing in Pakistan

Solar Financing Pakistan

You can still afford to switch to solar with the help of the bank if you cannot afford the solar system by paying for it up front. Currently, Pakistan’s solar financing banks offer financial aid through the country’s solar financing program. Here is a list of a few programs offered by solar financing banks in Pakistan.

JS BANK
BANK of Punjab
BANK of Khyber
Habib Bank Limited
Meezan Bank

JS BANK

A well-known bank that supports green energy is JS Bank. JS Bank began two distinct projects to assist people in taking charge of their energy production needs and helping to create a safer environment when SBP released the solar financing plan. The following are the programs that JS Bank offers to provide solar financing in Pakistan:

JS Ghar Apna Solar Financing Program (residential program)

JS Smart Roshni Program (commercial program)

https://jsbl.com/business/sme/js-smart-roshni-solar-panel-financing/

Features of the Programs

Both of the programs launched by JS Bank have the following similar features:
Financing
Between Rs. 300,000 and Rs. 20 million, depending upon the size of the project.
Equity
Minimum 25% of the total amount
Mark-up rate
6% annually
Financing tenor
Between 3 and 5 years

Processing fee

Minimum PKR 5,000/- or 0.5% of the loan amount (whichever of the two is higher will be taken)

Insurance

Insurance offered through reputable partners at a preferential rate

Prerequisites to Get Financing:

An account at JS Bank either Current or Savings
Fulfillment & signing of the loan application form
Obtain a quotation for a solar panel system from an authorized dealer
Two recent passport size photographs
Copy of CNIC
CF-1 Undertaking Form to be fulfilled
JS Solar Panel Key Fact Sheet of the program you have applied for
Documents showing the ownership of the property along with recent utility bills
Bank statements of a business or individual account
Active tax payee with NTN number (especially for businesses)

BANK of Punjab

To aid consumers in making the changeover to solar energy, The Bank of Punjab launched a financial support program in accordance with the State Bank of Pakistan solar financing initiative. They are providing solar financing in Pakistan to those who want to install solar panel systems in their homes for this purpose. The initiative is known as BOP Solar.

Features of the Program

Financing

Up to Rs. 5 million or 50 lac.

Equity

Minimum 20% of the financing amount

Mark-up rate

6% annually

Financing tenor

Up to 7 years

Processing fee

PKR 5,000 for processing

Prerequisites to Get Financing:

Attainment and fulfillment of loan application form
Two recent passport size photographs
Copy of CNIC
Proof of ownership of the property with utility bills
Bank statements of the past six months
Active tax payee with NTN number
Proof of employment or business for the last 03 years in the form of pay slips or any transactions made
Copy of professional degree if any
Details of any other loans taken from any other source

BANK of Khyber

Under SBP’s solar financing program, BOK provides funding for domestic consumers and plays a part in creating a cleaner and greener Pakistan. The Bank of Khyber launched a fantastic solar financing program in Peshawar, and following its success, they expanded the program to offer solar financing in Pakistan at all of their branches. The program is provided by the bank under the “BOK Roshan Ghar Scheme” name.

Features of the Program

Financing

From 50,000 to 20 million based on the category of the program under the SBP scheme.

Equity

Minimum 25% of the total financing amount

Mark-up rate

6% per annum

Financing tenor

Starting from 6 months up to 5 years

Processing fee

PKR 5,000 and FED

Insurance

The bank offers insurance from Askari General Insurance Peshawar (0.3%+taxes)

Prerequisites to Get Financing:

Fulfillment of financing application
Two recent passport size photographs
Copy of CNIC
Ownership of property document and the most recent utility bills
Bank statements of the past six months of the personal and business account
Active tax payee with NTN number
Proof of business or employment for the last 03 years
Copy of professional degree if any

Habib Bank Limited

In Pakistan, HBL is the largest bank with the largest network of branches. Under the State Bank of Pakistan Solar Refinancing Program, the bank is offering financial support in an effort to address Pakistan’s escalating energy crisis. Most of their clientele are industrial, and they offer solar financing in Pakistan in the three sectors listed below:

Category-I: For industrial projects ranging from 1MW to 50 MW.

Category-II: For projects up to 1MW.

Category-III: For suppliers certified under the AEDB Certification Regulation 2018 that can install solar or wind projects on a lease basis or for selling of electricity to ultimate owners.

Features of the Program

Financing

For category-I: PKR 06 billion for a single project.
For category-II: PKR 400 million for a single borrower.
For category-III: PKR 01 billion for a single supplier.

Equity

Minimum 25% of the total financing amount

Mark-up rate

Only 6% per year

Financing tenor

The financing tenor is different for every category and is as following:
Category-I: Maximum 12 years (including 02 years grace period).
Category-II: Maximum of ten years (including 03 months grace period).
Category-III: Maximum of ten years.
Prerequisites to Get Financing:
Fulfillment and signing of loan financing application
Two recent passport size photographs of the applier
Copy of CNIC
Ownership of Property documents along with the latest utility Bill & Electricity Bill
Bank statements of the past six months of a business or personal account
Active tax payee with NTN number
Details of any loans taken from all other sources

Bank Alfalah

Bank Alfalah also offers solar financing in Pakistan program under “Alfalah Green Energy” program. This is offered to both residential consumers as well as SMEs. The program has following notable features. The financing is offered for solar solutions with capacity ranging from 4kW to 1000kW.

Features of the Program

Financing

Rental Premises Residential customers: above 2.5 million
Owned Premises Residential customers: above 4.0 million
SMEs & Commercial businesses: above 10.0 million
Agri Customers / Business (Farming / Non-Farming): collateral equivalent to loan amount shall be taken for all cases
Maximum Loan Amount for single borrower: 400 million

Equity

Should be adequate as per bank rules

Mark-up rate

Only 6% per year
Financing tenor
Up to 5 years

Prerequisites to Get Financing:

Clean e-CIB report
Income proof / salary slips / bank statement / proof of being in business for the last three years
Utility bills of last 1 year
Non-objection certificate from all owners in case of joint property
Installment amount should not exceed 20-30% over and above 3-month peak bill average
Load applicability assigned by respective DISCO & Vendor survey report

Faysal Bank

Faysal bank also offers solar financing and the best thing is that they provide it in Shariah-compliant manner. The program name is “Faysal Islami Solar Solutions”. With its excellent Shariah-compliant home financing options, Faysal Islami Solar Finance adheres to the Islamic concept of diminishing musharka. The bank offers solar financing in Pakistan for solar systems ranging between 4kW and 20kW.

Features of the Program

Financing

Minimum PKR 100,000 – Maximum up to PKR 3,000,000

Equity

Minimum 15% of the Asset amount

Mark-up rate

Only 6% per year

Financing tenor

Flexible tenure between 1 to 7 years

Prerequisites to Get Financing:

Age: Minimum 21 years Maximum 60 Years

Minimum Income Requirement:

Salaried Individual: PKR 100,000

Self Employed Individual: 150,000

Solar Financing with Bright Energy

Bright Energy is the best Solar Company in Pakistan. We facilitate our customers in getting solar financing from different banks. We offer solar solutions that you can get on solar financing from banks. If you are unsure in any way about this, contact us. We will help you choose the best solar solution as well as the best financing option that will benefit you in the long run. What are you waiting for? Go to solar now and get rid of high electricity bills.

Select the Solar System Capacity for Your Home Based on Monthly Electricity Units:

Solar power systems are available in various capacities and types. If the usage of electricity is higher, then the capacity of the solar system is greater as well, so the required capacity of the solar system is directly proportional to or depends upon the electricity usage of the consumer. Bright Energy will help you find the right capacity for your electricity utilization.

MONTHLY ELECTRICITY UNITS	SYSTEM CAPACITY
300-350	3KW Solar System in Pakistan
500-600	5KW Solar System in Pakistan
1100-1200	10KW Solar System in Pakistan
1700-1800	15KW Solar System in Pakistan
2300-2400	20KW Solar System in Pakistan
2800-3000	25KW Solar System in Pakistan
3500-3600	30KW Solar System in Pakistan
4000-4200	35KW Solar System in Pakistan

Bright Energy, the Best Solar Energy Company in Pakistan, provides dependable and cost-effective Solar Systems in Pakistan. Switch to renewable energy and get your home or business off the grid. Now you can get the best A-grade, Tier-1 quality Solar Panels in Pakistan and Solar Inverters in Pakistan from top-rated global manufacturers without any hassle. Going solar is a perfect investment, locking in your energy costs for a lifetime. Request a quote for Solar System Price in Pakistan, which includes Top-quality Products. Our quote includes Solar Panel Price in Pakistan, which is not a burden on your pocket. In terms of inverters, we are dealing with some big names in the industry, and our Solar Inverter Price in Pakistan makes it the most budget-friendly investment. Recently, the government announced that it would provide solar systems on installments. Through SBP’s Solar Financing Scheme, we can facilitate our customers’ purchase of a solar system on easy monthly installments. We provide a Net Metering System in Pakistan to let you save and sell excess electricity back to the grid. Bright Energy provides the best Solar Packages in Pakistan.