Last Updated on January 19, 2026 by Aliya Anam
Pakistan offers various installment financing options for residential solar systems through major banks under SBP’s incentive frameworks. These schemes allow homeowners to install solar PV systems with low markup rates and flexible repayment.
Also See: Jazz Cash Saving Plan
Meezan Bank – Islamic Solar Financing
Meezan Solar Finance offers fully Shariah-compliant financing for home solar systems with the following key features:
- Financed System Size: From 1 kW up to 1,000 kW; typical residential limits are 1–10 kW.
- Financing Amount: PKR 100,000 up to PKR 3 million.
- Tenure: 1 to 5 years (12–60 months).
- Markup Structure: Based on Islamic musawamah; considered interest-free in essence.
- Down Payment:
- ≥ 12-month credit history: 15–50%
- < 12-month history: 30–50%
- Add-ons: Processing fee PKR 5,000 + FED; STR fee PKR 1,000; energy partner survey charges extras.
- Security: Hypothecation of solar equipment and 3 post-dated cheques.
- Eligibility: Minimum monthly salary PKR 100,000; must be a tax filer. Borrower’s property must be owner-occupied or undertake NOC from the actual owner.
Bank Alfalah – Home Solar Finance
Bank Alfalah’s Green Energy Finance Plan works for residential systems from 3 kW upwards:
- Financing Range: Up to PKR 5 million.
- Tenure Options: 3–10 years.
- Markup Rates:
- Salaried: 1-Year KIBOR + ~3%
- Self-employed/business: 1-Year KIBOR + ~4%
- Hybrid Modes: Mix of fixed-rate first year + variable thereafter.
- Down Payment:
- Self-owned premises: 20%
- Rented/leased premises: 25%
- Security: Hypothecation of equipment.
- Eligibility: Minimum monthly income PKR 50k (salaried) or PKR 100k (self-employed). Co-borrowers allowed.
Faysal Islami Solar Solutions
Faysal Bank’s Islamic Solar Option supports residential installations up to 20 kW:
- Maximum Finance: PKR 3 million.
- Markup: 6% per year (Islamic profit rate).
- Tenure: Up to 7 years.
- Eligibility:
- Salaried: Monthly income ≥ PKR 100,000.
- Self-employed/business: PKR 150,000 monthly.
- Ownership Requirement: Property ownership mandatory; first-time applicants and co-applicant options as per bank policy.
Allied Bank and Bank of Punjab Schemes
Both Allied Bank and Bank of Punjab offer similar solar financing:
| Bank | Max Finance | Tenure | Markup Rate | Eligibility |
|---|---|---|---|---|
| Allied Bank | PKR 3m | Up to 7 years | 6% p.a. | Salaried ≥PKR 50k; business ≥PKR 75k |
| Bank of Punjab | PKR 5m | Up to 7 years | 6% p.a. | Salaried ≥PKR 40k; business ≥PKR 50k |
Both follow standard documentation (CNIC, income proof, utility bill), and require property ownership.
Monthly Payments for Common System Sizes
(Estimates only—based on 5‑year tenures and applicable markup)
| Bank | System Size | Total Cost Estimate | Tenure | Approx. Monthly Payment |
|---|---|---|---|---|
| Meezan Bank | 5 kW | PKR 750,000 | 60 mo | ~PKR 15,000 (excl. fees) |
| Meezan Bank | 10 kW | PKR 1.5m | 60 mo | ~PKR 30,000 |
| Bank Alfalah | 5 kW | PKR 750,000 | 60 mo | ~PKR 16,500 |
| Bank Alfalah | 10 kW | PKR 1.5m | 60 mo | ~PKR 33,000 |
| Faysal / Allied / BOP | 5 kW | PKR 750,000 | 60 mo | ~PKR 14,600 |
| Faysal / Allied / BOP | 10 kW | PKR 1.5m | 60 mo | ~PKR 29,200 |
Reddit Insights & Real-World Feedback
- Many users confirmed that both Meezan Bank and Bank Alfalah are accessible options for solar installment financing.
- A Reddit user reported full 10 kW on-grid hybrid system costing around PKR 460,000, paid 50% upfront and balance over 3 months with vendor financing.
- Residential net-metering systems in cities often cost between PKR 1.3m–1.5m for 10–15 kW, including panels, inverter, mounts, wiring, and net-meter approval.
- Long-term monthly electricity bills deductions can be half or more, depending on solar size and energy usage habits.
- Users warned that batteries are not always included in bank finance and may add PKR 300,000 to 800,000 extra.
Things to Note Before Applying
- Net Metering Policy: Government plans to reduce grid buy-back rate may extend payback to 4–5 years.
- Battery Financing: Most banks finance on-grid panels only—not batteries. Confirm separately.
- Off-grid vs On-grid: On-grid requires net-meter arrangement; off-grid requires larger downpayment.
- Property Ownership: Must own or have co-applicant NOC; rented property may limit eligibility.
- Interest vs Islamic Markup: Non-Muslim or interested borrowers may prefer conventional; others choose Islamic schemes.
Summary Comparison
| Bank | Financing Limit | Tenure | Markup Rate | Down Payment Range | Key Feature |
|---|---|---|---|---|---|
| Meezan Bank | PKR 100k–3m | 12–60 months | Shariah-compliant | 15–50% | Islamic financing |
| Bank Alfalah | PKR >3m up to 5m | 36–120 months | KIBOR + 3–4% | 20–25% | Flexible hybrid rates |
| Faysal Islami | Up to PKR 3m | Up to 84 months | 6% p.a. | Similar ranges | Low fixed rate |
| Allied Bank | Up to PKR 3m | Up to 84 months | 6% p.a. | 20–30% | Broad eligibility |
| Bank of Punjab | Up to PKR 5m | Up to 84 months | 6% p.a. | 20–30% | Higher loan ceiling |
Final Thoughts
Solar financing installment plans from Meezan Bank, Bank Alfalah, Faysal Islami, Allied Bank, and Bank of Punjab make it straightforward for Pakistani homeowners to transition to solar energy without paying large sums upfront. Depending on your income, religious preference, property ownership, and budget, you can select between Shariah-compliant or conventional markup-based programs.
For typical residential 5–10 kW systems, expect total financing needs between PKR 700,000 to 2 million, monthly payments in the PKR 15,000–35,000 range over 3 to 7 years, and possible annual markup of 6% or linked to KIBOR benchmarks.
