Meezan Bank Solar Financing (A Comprehensive Guide)

Meezan Bank leads the way in Islamic banking in Pakistan, championing renewable energy with its Solar Panel Financing Program. This initiative offers a Shariah-compliant financing plan with a low-interest rate of just 6% per year for Solar Panels as part of the State Bank of Pakistan’s drive. Meezan 

The bank’s commitment to eco-friendly practices reflects its dedication to caring for the environment. The Solar Panel Financing Program is a complete solution, empowering homeowners to produce their electricity and potentially cut their monthly electricity costs by half. It’s designed to be accessible and affordable, with flexible payment options and competitive prices. 

What sets it apart is the chance for homeowners to sell extra power back to the national grid, making a positive impact on the environment. Opting for Meezan Bank’s solar financing not only supports renewable energy but also sets customers on a path to financial savings and environmental responsibility.

Features of Meezan Bank Solar Financing

Embarking on a greener journey, Meezan Bank introduces its Solar Financing program, a complete solution for homeowners eyeing solar panel installations. The program extends a Shariah-compliant financing option at a heavily subsidized rate, ensuring accessibility and affordability. 

Picture this: a hassle-free payment plan allowing homeowners to settle the costs of solar panels, inverters, wiring, and equipment through manageable monthly installments. The financing period spans from 1 to 5 years, with a maximum limit of PKR 3,000,000.

Now, let’s talk perks. The real beauty lies in potential savings on electricity bills. Imagine cutting those monthly costs by half as you generate your power through installed solar panels. But here’s the cherry on top—net metering. 

This nifty feature lets homeowners sell excess power back to the national electricity grid. It’s not just about being eco-friendly; it’s also a nifty way to earn some extra income on the side. Joining hands with Meezan Bank’s Solar Financing isn’t just an investment in solar power; it’s a practical step towards financial savings and a cleaner, greener environment.

Eligibility and Application Process

To qualify for Meezan Bank’s Solar Financing program, the criteria differ based on the type of applicants. If you’re a salaried individual with a steady job, you need to be a Pakistani national, aged between 20 and 60 years or up to the retirement age at maturity time. 

You should also earn a minimum salary of one lakh, hold a consistent job for at least two years, be a one-year tax filer with an NTN number, and provide at least two references. If you don’t have an existing account with Meezan Bank, don’t worry; one will be set up for you as part of the financing offer.

Now, let’s talk about the application process. It’s pretty simple. Follow these steps:

1. Initiate Application: Visit the nearest Meezan Bank branch or call their helpline at 111-331-331 / 111-331-332.
2. Obtain Quotation: Get a quotation from an Energy Partner authorized by Meezan Bank.
3. Document Submission: Submit the signed application form, a copy of your CNIC, and the latest electricity bill. Additional documents may be needed based on your applicant type, like proof of income for salaried individuals.
4. Bank Account Setup: If you don’t already have an account with Meezan Bank, one will be opened for you to unlock the full benefits of their financing facilities.

By following these steps, you can smoothly apply for Meezan Bank’s Solar Financing program, initiating your journey towards renewable energy and potential savings on electricity bills.

Costs Involved in Solar Financing

The expenses associated with setting up a solar system in Pakistan encompass various elements, including the costs of solar panels, inverters, installation, and related items.

Solar Panels: The pricing of solar panels can fluctuate based on the brand and type. As of December 2023, A-grade solar panels from reputable brands like Longi, Jinko, and JA cost approximately PKR 49 to PKR 52 per watt. The overall cost of a solar system in Pakistan typically falls within the range of PKR 180 to PKR 220 per watt. This inclusive figure covers solar panels, inverters, installation, hardware, net metering, and the mounting structure.

Solar Inverters: Solar inverters represent another substantial cost. The minimum price for solar inverters in Pakistan is PKR 75,000, with an average cost of PKR 450,000. Depending on the type and model, prices can reach up to PKR 910,000.

Installation and Additional Expenses: Professional installation adds another dimension to the overall expense of going solar. Installation costs vary based on project complexity, location, and labor expenses. In Pakistan, installation typically ranges from PKR 10,000 to PKR 20,000 per kW.

Financing: To alleviate the initial costs of setting up a solar system, various financing options are available in Pakistan. The State Bank of Pakistan (SBP) Solar Financing Scheme is a refinancing initiative that supports banks in offering solar systems through monthly installments. Faysal Bank’s Faysal Islami Solar Solutions is another financing alternative, providing financing of up to PKR 3 million with a repayment period of up to 7 years and a profit rate of 6% per annum. These options make it easier for individuals to embrace solar energy without a hefty upfront financial burden.

Costs Not Covered by Financing

When it comes to covering the expenses of going solar, financing can help with a significant chunk, but there might be some additional costs to consider. These extras could involve maintenance, potential upgrades or expansions of your system, and any expenses linked to repairs or replacements not covered by the warranty. It’s crucial to thoroughly grasp the terms and conditions of any financing arrangement to know precisely which costs will be taken care of.

Let’s delve into the advantages of opting for solar financing with Meezan Bank through their Shariah-compliant program, Meezan Solar, designed to make complete solar panel systems accessible and affordable for homes.

Shariah-Compliant Benefits:

Meezan Bank’s solar financing strictly follows Shariah law, which prohibits charging interest (riba). Instead of interest, the bank applies a profit rate directly linked to market trends. This ensures that the financing aligns with Islamic finance principles.

Cutting Down on Electricity Bills:

By choosing Meezan Solar, customers can potentially slash their monthly electricity bills by half. How? Solar panels generate electricity from sunlight, lessening the reliance on grid electricity.

Competitive Pricing and Flexible Payments:

Meezan Bank offers competitive prices for its solar financing, coupled with flexible payment plans. Financing durations range from 1 to 5 years, allowing a maximum financing cap of up to PKR 3,000,000. The minimum down payment is 15% of the total amount, and the financing range spans from PKR 100,000 to PKR 2,500,000.

Net Metering:

Through net metering, surplus power produced by solar panels can be sold back to the national electricity grid. This not only trims electricity costs but also contributes to a more environmentally friendly setting.

Expert Guidance:

Meezan Bank offers expert guidance to assist customers throughout the solar panel installation process. This includes help in understanding the associated costs like the prices of solar panels, inverters, and other related items. Choosing Meezan Bank’s solar financing not only makes financial sense but also ensures you’re supported by experts every step of the way.

Conclusion

Meezan Bank’s Solar Financing program provides a thorough and accessible solution for homeowners in Pakistan seeking to embrace renewable energy. This initiative offers a Shariah-compliant financing plan at a significantly subsidized rate, ensuring both accessibility and affordability. 

The program not only promises substantial potential savings on electricity bills, possibly cutting them by half but also introduces the unique opportunity of net metering. This feature allows homeowners to sell surplus power back to the national electricity grid, contributing to a more environmentally friendly setting and offering an extra income stream.

Beyond the financial advantages, Meezan Bank’s solar financing program aligns seamlessly with the bank’s dedication to promoting green energy and sustainable solutions. By opting for this program, customers not only invest in renewable energy but also actively support the bank’s endeavors in fostering a greener and more sustainable future.

For Pakistani homeowners contemplating a shift to renewable energy, Meezan Bank’s Solar Financing program emerges as a commendable option. It delivers a comprehensive solution that can trim your electricity bills, play a role in environmental conservation, and potentially generate additional income. For more details or to apply for the program, reaching out to Meezan Bank is a step in the right direction.