Solar Financing in Pakistan

A Step Towards Sustainable Energy

The State Bank of Pakistan (SBP) has pioneered a solar financing initiative in Pakistan. This program facilitates individuals and businesses to secure financing ranging from PKR 500,000 to PKR 10 Million for the acquisition of solar energy systems. Revised in 2016, the SBP’s renewable energy financing criteria aim to promote investments in renewable energy across various sectors, including industrial, commercial, residential, and agricultural.

The primary goal of the Solar Financing program is to make renewable energy accessible to a broader audience. By offering easy monthly installments, this scheme encourages the adoption of solar energy systems across Pakistan. 

Benefits:

1. Wider Adoption: This financing program paves the way for more individuals and businesses to harness renewable energy, ensuring a consistent and free electricity supply.

2. National Impact: Any surplus energy generated can be shared with others via Net Metering, benefiting the broader community.

Eligibility:

To ensure maximum participation and keep the process straightforward, the eligibility criteria have been kept minimal:

1. The applicant must possess a valid Computerized National Identity Card (CNIC).
2. The applicant should be the rightful owner of the business or residence where the solar system will be installed.

Mark Up Rate

The markup rate has been set economically to make sure more people can afford it, and become a part of this initiative. The markup rate has been decided at 3+3=6 per annum by the SBP. The 3% can further be negotiated depending upon your relationship with your bank.

A Sustainable Future with Bank Support

Transitioning to solar energy is now more accessible than ever, thanks to the Solar Financing Banks in Pakistan. These banks, under the Solar Financing Scheme, provide financial support to those who wish to invest in solar energy but may not have the immediate funds.

Leading Solar Financing Banks in Pakistan:

1. JS BANK: 

Recognized for its commitment to green energy, JS BANK offers two distinct solar financing programs:

JS Apna Ghar Solar Financing Program: Tailored for residential needs.

JS Smart Roshni Program: Designed for commercial requirements.

Key Features:

   – Financing ranges from Rs. 300,000 to Rs. 20 million.

   – Minimum equity of 25%.

   – Annual mark-up rate of 6%.

   – Financing tenor between 3 and 5 years.

   – Minimal processing fee and insurance at preferential rates.

2. BANK of Punjab: 

With its BOP Solar Home program, the Bank of Punjab aims to make solar energy accessible to homeowners.

Key Features:

   – Financing up to Rs. 5 million.

   – Minimum equity of 20%.

   – Annual mark-up rate of 6%.

   – Financing tenor up to 7 years.

3. BANK of Khyber:

Under the “BOK Roshan Ghar Scheme”, the Bank of Khyber offers solar financing across all its branches in Pakistan.

Key Features:

   – Financing from 50,000 to 20 million.

   – Minimum equity of 25%.

   – Annual mark-up rate of 6%.

   – Financing tenor from 6 months up to 5 years.

4. Habib Bank Limited (HBL): 

As Pakistan’s largest bank, HBL offers solar financing primarily to industrial clients in three distinct categories. They are providing financing to mostly industrial clients in the following three categories, which are as follows:

• 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 electricity to ultimate owners.

Key Features: 

  -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.

   – Minimum equity of 25%.

   – Annual mark-up rate of 6%.

   – Financing tenor varies based on the category.

The Bigger Picture:

The State Bank of Pakistan’s Green Banking program aims to integrate environmental considerations into banking operations. By promoting solar financing, the SBP envisions a greener, more sustainable Pakistan, addressing both the energy crisis and environmental concerns.

Solar Systems on Installments:

For residents in Lahore, Peshawar, and throughout Pakistan, solar systems in installments are a viable option. The benefits of transitioning to solar, such as long-term savings, often surpass the costs of monthly installments. With a financing period of approximately 5-7 years, the investment in solar energy promises a brighter, sustainable future.

With the support of leading banks, Ultra Solar Energy encourages Pakistan’s residents to embrace solar energy. By offering financial assistance, these banks are not just promoting renewable energy but are also paving the way for a sustainable and energy-efficient Pakistan.