Cost is the main reason people delay going solar — not roof space or paperwork. Here's how financing actually works, and how to tell a fair installment plan from an expensive one.
Two ways to finance a solar system
Bank financing: Several banks (including Meezan Bank, Bank Alfalah, JS Bank, and others) offer solar-specific financing, some under the State Bank of Pakistan's Renewable Energy Refinance Scheme, with structures like Diminishing Musharakah for Shariah compliance.
In-house installment plans: Many solar installers, including MBS Energy Solutions, offer direct installment plans on the equipment cost — useful if you don't want to go through a full bank loan application.
How to compare the two
The honest way to compare is to benchmark the effective markup rate against current bank rates for solar/green financing, not against unrelated personal loan rates. Bank financing usually involves more paperwork and longer approval time but can offer a lower effective rate. In-house installment plans are faster to arrange and more flexible on down payment structure, but you should always ask for the flat markup rate stated clearly and compare the total repayment amount, not just the monthly installment figure.
Why the EMI often beats your electricity bill from month one
For many households with electricity bills of PKR 30,000 or more a month, the monthly installment on a financed solar system can be lower than the bill it replaces — meaning you're redirecting money you're already spending toward something you'll eventually own outright, instead of paying it to your DISCO indefinitely.
What to ask before signing any financing plan
What is the flat markup rate, and what is the equivalent effective annual rate?
What is the total repayment amount over the full tenure, compared to the cash price?
Is there a down payment, and how does it affect the remaining financed amount?
What happens if you want to pay off the balance early — is there a penalty?
Is the financing on the full system, or just the equipment (excluding installation/net-metering fees)?
