Solar Financing in Pakistan
Solar Financing Pakistan
State Bank of Pakistan has initiated the Green Banking program to incorporate environmental contemplations in banking operations, services, and funding. Through Solar Financing Pakistan we can facilitate our customers to purchase Solar energy systems on easy month installments. The State Bank of Pakistan has inaugurated Solar Financing in Pakistan to encourage people belonging to the industrial, commercial, residential, and agricultural sector to invest in renewable energy sources. Under this program, SBP has issued revised criteria for SBP renewable energy financing in Pakistan in 2016.
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.
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.
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
Mark Up Rate
Solar System on Installments in Pakistan
Mark Up Rate
The markup rate has been set economical to make sure more people can afford it, and become a part of this initiative. The markup rate has been decided 3+3=6 per annum by the SBP. The 3% can further be negotiated depending upon your relationship with your bank.
|Rate of Refinance||Maximum bank/ DFI’s Spread||Maximum End User Rate|
Solar Financing Banks
Almost all the banks are providing solar system financing in Pakistan under this program. The required documents and final eligibility criteria of each bank vary. Your bank can also give you concessions based on your banking history. The banks with renown programs under this initiative are:
- JS Bank
JS Bank is offering solar investment under its JS Bank Apna Ghar solar financing program. The bank provides financing of Rs. 10 million without any collateral. The amount is to be repaid over a period of ten years, with a markup rate of 6% per annum.
- Allied Bank
Allied bank offers a loan of Rs. 10 million under SBP re-financing program for renewable energy. The markup is set to be 6% per annum, and the amount is to be repaid within 10 years.
- Bank Alfalah
Bank Alfalah offers loans for solar sponsoring under the Alfalah Green Energy program, in cooperation with the SBP re-financing program for renewable energy. The bank gives a loan of Rs. 2 million without any collateral for a period of 10 years. The markup rate is set at 6% annually.
How Can Premier Energy Help You?
Solar Financing Companies
Premier Energy, after completion of its 2 MW project, has successfully qualified for the State Bank of Pakistan Revised Banking Scheme (category I). Solar now has been made affordable for all with the successful implementation of this scheme. As a service provider, we at Premier Energy facilitate our clients throughout the process of loan attainment. Please feel free to ask any questions regarding the proposal, and our services or any other thing regarding the solar financing program in Pakistan. It would be a delight to take your questions.