Financing

Solar Financing Pakistan Through Banks

State Bank of Pakistan has initiated Solar Financing Pakistan, through Solar Financing in Pakistan you get Rs. 500000/- PKR to PKR Rs. 10 Million PKR. SBP has issued revised criteria for SBP renewable energy financing in Pakistan in 2016. Through Solar Financing scheme, we can encourage people who are belonging to the industrial, commercial, residential, and agricultural sector to invest in renewable energy sources. Through Solar Financing in Pakistan we can facilitate our customers to purchase solar energy systems in Pakistan on easy month installments.

Scope

This program shall allow more people to use renewable energy sources, which will help in attaining a free and uninterrupted supply of electricity. The excess energy which is produced shall be available to other people through Net Metering so it will impact the whole nation.

Eligibility Criteria

The eligibility criteria to qualify for this program have been kept very simple and easy to cope with the original objective of the program that is to encourage more people to use renewable energy by making it affordable. The eligibility criteria contain only these two requirements:

• 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

Solar Financing Banks in Pakistan

If you cannot afford the solar system by paying right away, you can still afford to switch to solar with the help of the bank. Now the Solar Financing Banks in Pakistan provide monetary assistance under Solar Financing Scheme in Pakistan.

List of Solar Financing Banks in Pakistan

• JS BANK

• BANK of Punjab

• BANK of Khyber

• Habib Bank Limited

JS BANK

JS bank is a well-known bank and a supporter of Green Energy. When SBP launched the solar financing scheme, JS bank initiated two different programs to help people take control of their energy production needs and contribute to a safer environment. The programs offered by JS Bank are as follows:

• JS Apna Ghar Solar Financing Program (residential program)
• JS Smart Roshni Program (commercial program)

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

The Bank of Punjab, have started their financial assistance program in compliance with the State Bank of Pakistan solar financing program to help people switch to solar. For this purpose, they are giving financial assistance to people who want to get solar panel systems for their homes. They have named the program BOP Solar Home.

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 payslips or any transactions made
• Copy of professional degree if any
• Details of any other loans taken from any other source

BANK of Khyber

BOK gives financing for domestic customers and is performing their role for a cleaner and greener Pakistan under SBP’s solar financing scheme. Solar Financing scheme from Peshawar a great initiative by The bank of Khyber, and after its success, they expanded the program to provide solar financing at all their branches in Pakistan. The bank offers the program under the name “BOK Roshan Ghar Scheme”.

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

HBL is the biggest bank with the vastest network of branches in Pakistan. The bank is providing financial assistance under the State Bank of Pakistan Solar Refinancing Scheme to address the rising energy crises in Pakistan. 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 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

Pakistan has been facing energy crises as well as environmental degradation with the use of non-renewable resources. The price of electricity is increasing rapidly, and economic growth is declining. To counter these problems, SBP started the Solar Financing Pakistan so industries, and homeowners can invest in renewable energy with the help of an investment from banks. State Bank of Pakistan has initiated the Green Banking program to incorporate environmental contemplations in banking operations, services, and funding.

Solar System on Installments in Lahore, Peshawar and Allover Pakistan

We encourage the people of Pakistan to install Solar systems on Installments in Pakistan because the benefits of going solar outweigh the monthly installments as you can have lifetime savings for a financing period of around 5-7 years.