# Solar financing in Pakistan: bank solar loans and instalment plans compared

URL: https://which.pk/solar/guides/solar-financing-pakistan/
Author: Ahtisham Imtiaz
Updated: 10 Oct 2026

## Summary

Banks finance home solar systems for 1 to 10 years, as of October 2026. Conventional loans are priced at KIBOR plus 2% to 4%: NBP 1-year KIBOR + 2%, Bank Alfalah + 3% or + 4%, MCB 6-month KIBOR + 3.5%. Meezan uses Islamic Musawamah and does not publish its rate. Down payments start at 15% to 30%. On a Rs 5.6 lakh loan at 15.68%, our estimate is Rs 13,523 a month over 5 years, with about Rs 2.51 lakh in markup.

## Key facts

- 1-year KIBOR (6 Oct 2026): 12.68%
- Bank pricing: KIBOR + 2% to 4%
- Minimum down payment: 15%–30%
- Longest tenure: 10 years

To get solar panels on installment in Pakistan, the main route is a **bank solar loan through one of the bank's approved vendors**. As of October 2026, conventional banks price these loans at **KIBOR plus 2% to 4%**, which comes to roughly 14.7% to 16.7% a year at the 6 Oct 2026 KIBOR. You pay at least 15% to 30% upfront and repay over 1 to 10 years, depending on the bank.

**1-year KIBOR, 6 Oct 2026:** 12.68% (Offer rate, SBP KIBOR sheet. Most solar loans add a fixed spread to KIBOR, so your rate moves when KIBOR does.)

## How do bank solar loans compare?

Figures come from each bank's own product page or key fact statement, read on 10 Oct 2026. Bank Alfalah's website blocked us, so its rows come from Wayback Machine copies of its pages (5 Aug 2026 and 10 Apr 2026).

| Product | Amount | Tenure | Rate basis | Minimum down payment |
|---|---|---|---|---|
| NBP Roshan Ghar Solar Finance | Rs 4 lakh to Rs 50 lakh | Up to 7 years | 1-year KIBOR + 2% | 20% (loan up to 80% of equipment value) |
| Bank Alfalah Home Solar Finance | Up to Rs 50 lakh | 3 to 10 years | 1-year KIBOR + 3% (salaried), + 4% (others); 6-month KIBOR on request | Not stated on page |
| MCB Green Ghar Finance | Rs 2 lakh to Rs 50 lakh | Up to 7 years | 6-month KIBOR + 3.5% | 20% salaried, 25% self-employed |
| JS GharApna Solar | Rs 3 lakh to Rs 70 lakh | 3 to 7 years | Not stated on page | 20% (up to Rs 60 lakh), 30% (up to Rs 70 lakh) |
| Meezan Solar (Islamic, Musawamah) | Rs 1 lakh to Rs 25 lakh (Rs 30 lakh Premium) | 1 to 5 years | Not published | 15% on-grid with 12+ months' credit history, otherwise 30% |
| Bank Alfalah Islamic Green Finance (Diminishing Musharakah) | Up to 80% of cost | 3 to 10 years | Not shown on page | 20% (financing up to 80%) |

NBP's product page carries no date, so check its terms at a branch. JS Bank also runs a separate **Pakistan Distributed Solar Project**, backed by the Green Climate Fund, at KIBOR plus a bank spread with a residential cap of up to Rs 2 crore, "till the facility is exhausted".

## What fees and conditions come with a solar loan?

| Product | Processing fee | Insurance | Early payoff |
|---|---|---|---|
| Meezan Solar | Rs 6,000 + FED; Rs 1,000 STR fee | None stated; after the sale, damage and after-sale service are between you and the vendor | No early termination charge |
| MCB Green Ghar | Rs 7,000 + FED | Mandatory, up to full system value | Per schedule of charges |
| JS GharApna Solar | Rs 14,000 + FED in total | Mandatory | 4.5% of outstanding principal in year 1, falling to 1% in year 5 |
| Bank Alfalah Home Solar | We couldn't open its fee document | First year's premium paid upfront | Allowed "with nominal charges" |
| NBP Roshan Ghar | Per schedule of charges | Not stated | Not stated |

Meezan's salaried FAQ says Rs 5,000 + FED, but its product page and July to December 2026 schedule of charges say Rs 6,000. We follow the schedule of charges.

Other conditions that catch people out:

- **Approved vendors only.** Meezan, MCB, JS Bank and Bank Alfalah all require a quotation from their own list of solar companies.
- **No batteries at Meezan.** Meezan does not finance batteries or net metering costs, and only lends in Karachi, Lahore and Rawalpindi/Islamabad.
- **Collateral above Rs 15 lakh at MCB.** Larger MCB loans need a mortgage on a residential property.
- **Rate resets.** MCB's floating rate changes on the first working day of January and July. Only KIBOR changes; the 3.5% spread stays fixed.
- **You must own the house.** Bank Alfalah finances only homes owned by you, your spouse or blood relatives. JS GharApna needs you to own the house, or a parent's house with an NOC (no-objection certificate).
- **No flats at Meezan.** Meezan finances only constructed houses, not apartments.

## Who is eligible for a bank solar loan?

| Product | Minimum income | Age |
|---|---|---|
| NBP Roshan Ghar | Rs 25,000 a month (salaried), Rs 75,000 (business) | 22 to 60 (salaried), 22 to 65 (self-employed) |
| Bank Alfalah Home Solar | Rs 50,000 net (salaried), Rs 1 lakh (others) | 25 to retirement (salaried), 25 to 70 (others) |
| MCB Green Ghar | Rs 75,000 net (salaried), Rs 1.5 lakh (self-employed) | 25 to 65 or retirement |
| JS GharApna Solar | Rs 75,000 gross (permanent), Rs 1 lakh (contractual) | 27 minimum; 60 or 65 at maturity |
| Meezan Solar | Rs 1 lakh gross (salaried), Rs 5 lakh (business) | 20 to 60 at maturity (salaried) |

Meezan and JS Bank also require you to be an active tax filer with an NTN (National Tax Number). See [filer vs non-filer](/business/guides/filer-vs-non-filer/).

## How much does a solar loan cost per month?

This is **our estimate**, not a bank quote. Take a Rs 7 lakh system, inside our Rs 5.7 to 7.7 lakh estimate for a [5 kW on-grid system](/solar/guides/solar-system-price-pakistan/). You pay 20% down (Rs 1.4 lakh) and borrow Rs 5.6 lakh.

We use 15.68%: the 1-year KIBOR offer rate on 6 Oct 2026 (12.68%) plus Bank Alfalah's 3% salaried spread. We assume the rate stays the same for the whole loan.

| Tenure | Monthly instalment | Total repaid | Markup paid |
|---|---|---|---|
| 3 years | Rs 19,600 | Rs 7.06 lakh | about Rs 1.46 lakh |
| 5 years | Rs 13,523 | Rs 8.11 lakh | about Rs 2.51 lakh |

If KIBOR rose 1 point and stayed there, the 5-year instalment would be Rs 13,821, or Rs 298 more a month. Add the processing fee, insurance and FED on top.

At the same KIBOR, the formulas give 14.68% for NBP, 15.89% for MCB (6-month KIBOR of 12.39% plus 3.5%) and 16.68% for Bank Alfalah's self-employed rate. Whether the loan pays off depends on your bill savings: see [is solar worth it in Pakistan](/solar/guides/is-solar-worth-it-pakistan/).

**Net metering has changed:** Since 9 Feb 2026, new rooftop systems go on net billing, not net metering. Exported units now earn about Rs 10 to Rs 11 each, against about Rs 26 under old contracts (Dawn, 10 Feb 2026), so count mainly on the units you use yourself when you plan repayments. See [net metering in Pakistan](/solar/guides/net-metering-pakistan/).

## Is the SBP 6% solar financing scheme still available?

We couldn't confirm it is. SBP's Financing Scheme for Renewable Energy let banks lend for systems up to 1 MW under net metering (Category II), for up to 10 years and Rs 400 million per borrower. Its archived page shows a 6% cap only for Category III, lending to renewable energy investment companies.

SBP's last extension, Circular Letter 9 of 2022, ran the scheme **to 30 June 2024**. SBP's 2024 circulars list shows no further extension.

SBP's website blocked us, so we read these pages from Wayback Machine copies. A December 2025 copy still describes the scheme but gives no end date. Ask your bank in writing whether it has a limit under the scheme before you rely on a 6% rate.

## Are there government solar schemes for households?

- **Punjab:** the CM Punjab Free Solar Panel Scheme gave free systems to consumers using up to 200 units a month: 550 W for about 100 units and 1,100 W for up to 200 units, chosen by ballot (Dawn, 7 Dec 2024). Its first phase covered 94,483 free systems from about 861,000 applicants (Dawn, 4 Mar 2025). We couldn't open Punjab government websites to check for a current phase or an instalment scheme.
- **Sindh:** the Chief Minister announced a "Solar Installment Plan" in June 2026, where households would pay instalments equal to their current electricity bill for three to four years (Daily Pakistan, 18 Jun 2026). No eligibility rules, lender or launch date had been published.
- **Sindh distribution plan:** Sindh plans to hand out 275,000 household solar systems in FY27 at a cost of Rs 18 billion (Arab News, 25 Jun 2026).

## What about installer instalment plans and other banks?

We found no installer that publishes its down payment, tenure and markup, so we can't compare them. If an installer offers instalments, ask for the total you will pay and compare it with a bank's figure.

We also couldn't confirm solar terms at HBL (no home solar page found), UBL (its site rejected our request), Faysal Bank, Bank of Punjab, Bank AL Habib or Askari Bank. BankIslami's solar page offers its customers a discount and a year of free maintenance, not financing.

More guides: [solar system price](/solar/guides/solar-system-price-pakistan/), [what size solar system you need](/solar/guides/what-size-solar-system/), [credit cards compared](/money/guides/credit-cards-pakistan-compared/), [how to apply for net billing](/solar/guides/how-to-apply-for-net-metering/), [solar calculator](/solar/tools/solar-calculator/), [Solar](/solar/).

## Questions people ask

### How can I get solar panels on installment in Pakistan?

Get a quotation from one of the bank's approved solar vendors, apply for the bank's solar finance, pay the down payment and repay monthly. At the banks we checked, the minimum down payment is 15% to 30% and tenure runs from 1 to 10 years.

### What is Meezan Bank's solar financing rate?

Meezan does not publish its profit rate on its solar page or FAQ, as of October 2026. It finances Rs 1 lakh to Rs 25 lakh over 1 to 5 years under Musawamah, with a processing fee of Rs 6,000 plus FED.

### Is the SBP 6% solar financing scheme still available?

SBP's last extension of its renewable energy scheme ran to 30 June 2024, and we found no later extension. SBP's website blocked us, so ask your bank whether it still has a limit under the scheme.

### Is there a government solar loan scheme in Punjab?

Punjab's 2024–25 scheme gave free systems to households using up to 200 units a month, chosen by ballot. We could not confirm any current Punjab instalment or loan scheme from an official source.

### Does HBL offer solar financing?

We found no home solar finance page on HBL's website on 10 Oct 2026. Blogs describe HBL solar loans, but we could not confirm the terms, so ask a branch for a written key fact statement.

## Sources

- [KIBOR, 6 Oct 2026](https://www.sbp.org.pk/assets/document/kibor-rates-06-october-2026.pdf), State Bank of Pakistan (accessed 10 Oct 2026)
- [SBP Financing Scheme for Renewable Energy (Wayback copy, 16 Dec 2025)](https://www.sbp.org.pk/Incen-others/Rene.asp), State Bank of Pakistan (accessed 10 Oct 2026)
- [IH&SMEFD Circular Letter No. 09 of 2022](https://www.sbp.org.pk/smefd/circulars/2022/CL9.htm), State Bank of Pakistan (accessed 10 Oct 2026)
- [Meezan Solar](https://www.meezanbank.com/solar-panel-financing/), Meezan Bank (accessed 10 Oct 2026)
- [Meezan Solar FAQs (salaried)](https://www.meezanbank.com/wp-content/themes/mbl/downloads/solar-panel-FAQ/salaried-FAQs.pdf), Meezan Bank (accessed 10 Oct 2026)
- [Schedule of Charges, July to December 2026](https://www.meezanbank.com/wp-content/themes/mbl/downloads/home-downloads/SOC-ENG-Jul-Dec-2026.pdf), Meezan Bank (accessed 10 Oct 2026)
- [Home Solar Finance (Wayback copy, 5 Aug 2026)](https://www.bankalfalah.com/personal-banking/loans/home-solar-finance/), Bank Alfalah (accessed 10 Oct 2026)
- [Islamic Green Finance (Wayback copy, 10 Apr 2026)](https://www.bankalfalah.com/islamic/personal-banking/bank-alfalah-islamic-green-finance/), Bank Alfalah Islamic (accessed 10 Oct 2026)
- [MCB Green Ghar Finance](https://www.mcb.com.pk/personal/consumer-loans/mcb-green-ghar-finance), MCB Bank (accessed 10 Oct 2026)
- [Key Fact Statement, MCB Green Ghar Finance (3 Nov 2025)](https://www.mcb.com.pk/assets/documents/Key-Fact-Statement-MCB-Green-Ghar-Finance-3-Nov-2025-New-11-Font-English.pdf), MCB Bank (accessed 10 Oct 2026)
- [JS GharApna Solar Solution Financing](https://www.jsbl.com/js-gharapna-solar-solution-financing/), JS Bank (accessed 10 Oct 2026)
- [Pakistan Distributed Solar Project (PDSP)](https://www.jsbl.com/pakistan-distributed-solar-project-pdsp/), JS Bank (accessed 10 Oct 2026)
- [Schedule of Charges, July to December 2026](https://www.jsbl.com/wp-content/uploads/2026/05/Schedule-of-Charges-July-to-December-2026-English.pdf), JS Bank (accessed 10 Oct 2026)
- [NBP Roshan Ghar Solar Finance: product features](https://nbp.com.pk/RoshanGharSolarFinance/ProductFeatures.aspx), National Bank of Pakistan (accessed 10 Oct 2026)
- [CM opens free solar panel scheme](https://www.dawn.com/news/1877136), Dawn (accessed 10 Oct 2026)
- [Free solar panel scheme formally launched in Punjab](https://www.dawn.com/news/1895664), Dawn (accessed 10 Oct 2026)
- [New Sindh solar financing scheme to let consumers pay electricity bill equivalent installments](https://en.dailypakistan.com.pk/18-Jun-2026/new-sindh-solar-financing-scheme-to-let-consumers-pay-electricity-bill-equivalent-installments), Daily Pakistan (accessed 10 Oct 2026)
- [Nepra pulls the plug on net-metering](https://www.dawn.com/news/1972203), Dawn (accessed 10 Oct 2026)
- [Pakistan's Sindh to distribute 275,000 solar systems among households in FY27](https://www.arabnews.pk/node/2648507), Arab News Pakistan (accessed 10 Oct 2026)