Electricity is getting expensive with every passing day. I daily come across people wishing to go solar. However, the upfront cost of installing solar a solar system can stop many people from proceeding further. This is where solar financing schemes in Pakistan come in. Through financing through a bank, you can install a solar system on monthly installments.
With a view to promoting renewable energy in the country, the State Bank of Pakistan issued the Revised SBP Financing Scheme for Renewable Energy on June 20, 2016. This program facilitates commercial banks and development finance institutes (DFIs) to provide easy loans to households, owners of commercial buildings, agricultural clients, and SMEs.
This can make solar energy more affordable and accessible to a wider range of people.
Under the SBP Renewable Energy Program, several banks offer solar financing options, each with its own set of terms and conditions. In this article, we will provide an overview of some of Pakistan’s most popular solar financing schemes.
Specifically, we will discuss the following solar financing banks in Pakistan.
- Meezan Solar Financing
- Allied Bank Solar System Finance
- Alfalah Green Energy
- Faysal Islami Solar Solutions
- JS Ghar Apna Solar Solution
- BOP Solar
- Bank Al Habib Solar Financing
Let’s go.
Popular Solar Financing Schemes in Pakistan (2023)
1. Meezan Solar Financing
Meezan Solar is a financing scheme offered by Meezan Bank. The solar on installment scheme offers financing of up to PKR 2.5 million, with a repayment tenure of at least one year and can go up to 5 years. The interest rate or profit rate is 6% per annum.
Your solar systems, along with 3 cheques, will act as collateral. The system capacity allowed is between 1kW and 1MW—that means that almost all the residential systems are covered.
Eligibility criteria
To be eligible for the Meezan Solar scheme, you must:
- Be a Pakistani citizen
- Own a property in Pakistan—the loan is not available for flats and apartments. If the property is owned by multiple individuals, they will have to become co-applicants. Also, the applicant(s) must reside at the address.
- Have a minimum income of PKR 100,000 per month for salaried class (permanent), 200,000 for salaried class (contract job), monthly gross income of PKR 500,000 for business owners, and monthly pension of at least PKR 100,000 for pensioners.
- Age of the applicant: Minimum 20 years and maximum 60 years or up to the age of retirement at the time of maturity. For businesspersons, it is between 30 and 65 years.
- Have a good credit history.
- Available for on-grid systems, off-grid systems, and hybrid systems. It basically covers the cost of solar panels, inverters, and mounting structures, but not the cost of batteries and net metering. That cost will be borne by the customers themselves.
How to Apply for the Meezan Solar Financing Program?
To apply for the Meezan Solar scheme, you can visit any Meezan Bank branch or apply online. You will need to provide the following documents:
- Proof of identity and address
- Proof of income
- Property documents—also your latest electricity bills.
- Credit report
| Pros of the Meezan Program | Cons of the Meezan Solar Program |
| The Meezan Solar scheme offers competitive interest rates and flexible repayment terms. | The Meezan Solar scheme is only available to homeowners. |
| The application process is smooth and straightforward. | The maximum financing amount is relatively low. |
| Meezan Bank has a wide network of branches across Pakistan, so it easy to apply for the scheme. | Does not cover batteries and the cost of net metering. |
| Includes the cost of solar panels, inverters, wiring, mounting structure, etc. | |
| It is Shariah-compliant. |
Read more about the financing program here.
2. Allied Bank Solar System Finance
Allied Bank Solar System Finance is another solar loan scheme offered by Allied Bank to help businesses and individuals realize their renewable energy goals. ABL offers financing of up to PKR 3 million, which you can repay in as many as 7 years. The interest rate is 6% per year as per the guidelines of the SBP.
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Eligibility Criteria
To be eligible for solar energy system financing from Allied Bank, you must:
- Be a Pakistani national.
- Be between 21 and 59 years old.
If you are a salaried individual:
- You must be a permanent employee of a registered entity in Pakistan.
- You must have been employed for at least two years.
- You must have a minimum six-month active relationship with Allied Bank or any other bank.
- Your net monthly salary must be at least Rs. 50,000/-.
If you are a self-employed individual:
- You must have a minimum one-year relationship with Allied Bank or a minimum two-year relationship with any other bank.
- You must have been in your business or profession for at least two years in the case of a relationship with Allied Bank or at least three years in the case of a relationship with any other bank.
- Your net monthly income must be at least Rs. 75,000/- in the case of a relationship with Allied Bank or Rs. 100,000/- in the case of a relationship with any other bank.
How to Apply Allied Solar Loan?
To apply for the Allied Bank Solar System Finance scheme, you can visit any Allied Bank branch or apply online. You will need to provide the following documents:
- CNIC copy of the applicant
- CNIC copy of co-owner or the owner(s) other than the applicant (where applicable)
- Two (2) recent passport-size photographs of the applicant
- Income documents, which may include Salary Slips / Salary Certificates / Bank Statement(s) / Income Tax Returns / Income Estimation Report
- Proof of property ownership
- Proprietorship Letter, where applicable
- Personal Guarantee and Letter of Access & Disclaimer from co-owner(s) or the owner(s) of property other than the applicant, where applicable
- Quotation with Survey Report from approved solar system vendor
| Pros of the Allied Solar Finance | Cons of the Allied Solar Finance |
| The minimum income slab is quite low – PKR 50,000 per month. | For those that it matters, it is not Shariah-compliant. |
| Convenient for those who are already ABL customers. |
Read more about the Allied Solar System Finance.
Interesting Read: How Much Power Do Solar Panels Produce in Pakistan?
3. Alfalah Green Energy
When it comes to solar loans, Alfalah Bank is not behind other banks. Under their Alfalah Green Energy scheme, it offers solar systems on instalment to both residential and commercial sectors. The scheme offers financing of up to a whopping PKR 400 million, with a repayment tenure of up to 5 years. The interest rate is 6% per annum.
The Alfalah’s loan scheme also covers rented residential properties with a loan limit of PKR 2.5 million. Those who own the property can apply for PKR 4 million loans. The minimum system size is 4kW—so if you are installing a 3kW solar system, you will not be able to avail the loan facility.
Eligibility Criteria
To be eligible for the Alfalah Green Energy scheme, you must:
- Be a Pakistani citizen
- Have a minimum income of PKR 50,000 per month
- Have a good credit history
- Other terms and conditions required by the banks/DFIs for loans (such as age must not exceed 60, etc.) are the same.
How to Apply for the Alfalah Green Energy Program?
To apply for the Alfalah Green Energy scheme, you can visit any Alfalah Bank branch or apply online. You will need to provide the following documents:
Individuals / Staff (preferred companies) with an intent of net-metering:
- Clean e-CIB report—that is, you have not defaulted on any previous loan.
- Income proof/salary slips/bank statement
- Utility bills for the last one year
- Non-objection certificate from all owners in case of joint property
- The installment amount should not exceed 20-30% over and above the 3-month peak bill average.
- Load applicability assigned by respective DISCO & vendor survey report
Commercial, SMEs & Agriculture Business
- Clean e-CIB report
- Proof of being in the business for at least three years (this is not applicable for agricultural customers)
- Utility bills for the last 1 year (not applicable for agricultural customers)
- Non-objection certificate from all owners in case of joint property
- Installment amount not to exceed 20-30% over and above the 3-month peak bill average (not applicable for agricultural customers)
| Pros of the Alfalah Green Energy Program | Cons of the Alfalah Green Energy Program |
| The loan also covers the charges of net metering. | It is not Shariah-compliant. |
| Like other banks mentioned, Alfalah Bank also has a wide network of branches across Pakistan, making it easy to apply for the scheme. | Those with systems smaller than 4kW cannot avail the loan. |
| Available to businesses and individuals with a minimum income of PKR 50,000 per month. | |
Read more about the Alfalah Solar Financing Scheme.
Interesting Read: What is the Difference Between On-Grid, Off-Grid, and Hybrid Solar?
4. Faysal Islami Solar Solutions
Faysal Islami Solar Solutions is a Shariah-compliant solar offered by Faysal Bank, enabling Pakistanis to install solar systems on monthly installments. The scheme offers financing of up to PKR 3 million, with a repayment tenure of up to 7 years. The profit rate is 6% per annum.
The allowed system capacity is between 4kW and not more than 20kW. Given the allowed system capacity, it appears that their loan program is more directed at residential and small-scale commercial solar.
Eligibility Criteria
To be eligible for the Faysal Islami Solar Solutions scheme, you must:
- Be a Pakistani citizen
- Own a property in Pakistan
- Age: Minimum 21 years, Maximum 60 years
- Minimum Income Requirement: Salaried Individual, PKR 100,000; Self-Employed Individual, PKR 150,000.
How to Apply for Faysal Islami Solar Solutions?
- Visit the nearest Faysal Islamic Bank branch or call their helpline to apply for solar financing.
- Provide the required documents, including a copy of your CNIC, proof of income, and a recent utility bill. You may also be required to show the documents of the property where you want to install the system.
- Once your application is approved, you will receive a financing offer from Faysal Bank.
Read more about the Faysal Islami Solar Solutions.
5. JS Ghar Apna Solar Solution
JS Ghar Apna Solar Solution also offers solar loans. Their program is only for residential solar systems, and not for commercial or semi-commercial properties, remember that. The scheme offers financing of up to PKR 3.5 million, with a repayment tenure between 3 to 7 years. The markup rate is a fixed 6% per annum.
The good thing about this scheme is that it also covers batteries—they only mention lithium batteries, so you will have to install only lithium batteries. If you want to know what kind of batteries they are, read our explainer on lead-acid vs. lithium batteries.
Eligibility Criteria
To be eligible for the JS Ghar Apna Solar Solution scheme, you must:
- Be a Pakistani citizen
- Own a property in Pakistan
- Have a minimum income of PKR 100,000 per month—this is not mentioned on their website. It is only my guess—also, if your income is lower than 100,000, getting a loan where around 50% of your salary goes to the loan won’t be a good idea.
- Have a good credit history.
How to Apply JS Apna Ghar Solar Solution?
To apply for the JS Ghar Apna Solar Solution scheme, you can visit any JS Bank branch or apply online. The checklist of the required documents they have provided is reproduced below:
- Open an account at JS Bank (Current or Savings)
- Fill out & sign the loan JS GharApna Solar Panel Financing application form.
- Obtain quotation of solar panel systems from authorized energy partner of the Bank.
- Two (2) recent passport-size photographs.
- Copy of CNIC/NICOP.
- CF-1 Undertaking Form. You will get more details about this form from the bank.
- Property Ownership document (Title Deed) along with latest utility bill and electricity Bill (for proof of ownership).
- Bank statements for business or personal accounts with account maintaining certificate.
- Contact details of the applicant and co-borrowers.
- Must be an active taxpayer with an NTN number
- Any other requirement of the bank
Read more about the JS Solar Financing Program.
6. BOP Solar
BOP Solar is a financing scheme offered by the Bank of Punjab to help businesses and individuals finance the installation of solar panels on monthly installments. Their solar loan scheme offers financing of up to PKR 5 million, with a repayment tenure of up to 7 years. The profit rate is 6% per annum.
The program is available in selected cities, including Rawalpindi, Islamabad, Lahore, Karachi, Peshawar, Gujranwala, Faisalabad, Multan,
Eligibility Criteria
To be eligible for the BOP Solar scheme, you must:
For Salaried Individuals:
- Age: 25-60 years
- Income: Minimum Rs. 40,000/-
- Employment History: 1 year for permanent & 03 years for contractual employees
- Salary account with any bank
For Self-Employed Persons:
- Age: 25-65years
- Minimum Monthly Net Income Rs. 50,000/-
- Minimum Experience: 3 years
How to Apply for the BOP Solar Loan?
To apply for the BOP Solar scheme, you can visit any Bank of Punjab branch or apply online. You will need to provide the following documents:
- Proof of identity and address
- Proof of income
- Business registration certificate (if applicable)
- Credit report
- Copy of valid CNIC
- Two recent passport-size photographs
- Bank statement (last 06 months for salaried persons and 1 year (for SEP/SEB)
- Latest copy of utility bill of residence and/or office
- Detail of existing loans from all sources
- Documented evidence of being in business or profession for the last 03 years
- Copy of professional degree (for professionals)
Read more about BOP Solar.
Other Solar Financing Schemes You May Consider
Apart from those we mentioned, there are other banks that are offering solar loans to different types of customers with varying terms and conditions. Some honorable mentions include:
Which is the Best Solar Financing Bank in Pakistan?
If you look at the different solar loan schemes discussed above, almost all of them offer the same terms and conditions. Some may offer more financing flexibility in terms of tenure—such as those that have repayment tenure of up to 7 years.
I have personally worked with Meezan for a few of my clients, and their process is smooth and convenient. But that’s only my experience—if you have a bank account in other banks mentioned above, you may consider financing your system through them.
What Type of Loan is Best for Solar?
The best solar loan offered by any bank would have flexible terms and conditions, such as a low-interest rate, a larger repayment period, and a decent financing amount. It would also have a smooth documentation process.
We have discussed much in the sections above, but when finalizing the loan scheme offered by a bank, consider the following:
- The amount of financing you need
- The repayment tenure
- The interest rate or profit rate
- The eligibility criteria
- The application process
- The terms and conditions of the scheme
If any of the schemes mentioned make more sense to you, go for it.
Also, if you have decided to go solar, how about we do it for you? We’re the best in town—at Ecospark, we help you make the most from your system.
