Everything You Should Know About Solar Financing

Installing solar is a necessity in every sense – it can bring down pollution, reduce your dependency on the grid, and reduce your electricity bill. Despite these many benefits, people still hold back from going solar. 

The upfront cost of installation is one reason. Although the investment breaks even within 3-4 years, affording the system at once might not be possible for everybody. This is where solar financing comes into view. 

If it’s the lump sum payment that has been giving you jitters, this is a must-read guide. We’ve listed everything you need to know about a solar loan, how solar financing works, and more.

Dive in and decode the mystery surrounding the solar panel loan like never before. 

What is solar financing?

Before we walk you through the schemes, it makes a great deal of sense to explain to you what solar financing is and how it can help you. 

Here’s a simple explanation:

Solar financing is nothing but a vendor sponsoring you so that you don’t have to pay the entire cost of solar installation at once. 

It’s just as good as the government offering subsidies to homeowners and housing societies. 

However, in no sense does this mean that installing a solar system is bone-breaking. The kind of returns that solar offers are unimaginable. The entire concept behind a solar loan is to make things financially simpler for customers.

How can SolarSquare Help You? 

SolarSquare is the third-biggest player in rooftop solar. We offer easy financing services with no hidden terms and conditions. 

• We offer a quick, hassle-free 10-minute loan approval.
• We offer a range of EMI services. There’s a 6-month zero-cost EMI scheme, a 36-month EMI scheme, and a 5-year EMI scheme. 
• You pay just 30% of the installation cost upfront. The rest is broken down into easy installations. 

Register with us to learn more about the easy solar financing options available. 

What are the Conditions for applying for a Solar Panel Loan?

Other than a good credit history, there’s nothing else that’s needed. There are absolutely no cons of availing a solar loan. 

Let’s explain things with the help of an example. 

Suppose, you choose a 3 KW solar system that’s worth ₹1,80,000 and the 6-month zero-cost EMI scheme to sponsor it.  

• You’ll pay 30% of the system’s cost upfront. In this case, it will be ₹54,000.
• The remaining amount that’ll be broken down into installments will be ₹1,26,000.
• You’ll be paying an EMI of just ₹21,000 for the next 6 months. 

Considering that the electricity tariffs increase by 3-5% annually, going solar will give huge returns. This means, there are no cons to applying for and availing of a solar loan.

With the help of solar financing, you will be able to install a system at your home without upsetting your budget. There’s no better way of going solar than availing a solar panel loan if you do not wish to pay the entire amount at once. 

Cost of Solar System vs the Savings From Solar

You already know what solar financing is and how we can help. It’s time now that we also walk you through the details of the cost of installation vs the cost of savings. 

The comparison will help you make an informed decision about going solar and availing a solar loan. 

Let’s continue with the example of a 3 KW solar system only. Suppose, the electricity tariff in your state is ₹8/unit and your monthly power consumption is 350-360 units. 

Without going solar, your bill would be around ₹2800 to ₹3000. After installing the system, the bill will be almost nil. 

It means that your annual savings will be roughly between ₹33,600 to ₹36,000. Keeping in mind that the option of subsidy is available and the tariffs increase by 3-5% every year, the cost of installation will break even within 3-4 years. 

Solar panels from elite brands last for 25 years. Post which, they still produce electricity at 70% efficiency. After the cost breaks even and until the system lasts, you will continue getting free solar electricity. 

The system that initially costs ₹1,80,000 will give you a yearly saving of approximately ₹36,000. You can imagine the kind of returns you will get throughout the life of the system. 

Solar Financing: A Legit Option 

Most builders and modern architects now construct homes that are solar-friendly already. It makes applying for a home loan a lot easier since solar is a sustainable option with guaranteed returns.  

Gone are the days when solar systems used to be unaffordable and just a luxury for the rich. With easy solar panel loans and financing options, more and more people have started going solar. And so should you. 

Conclusion

Solar financing is the future. The solar subsidy will cease to exist someday but the solar loan will always be an option. 

Being a vendor trusted by customers, we took it upon ourselves to make financing easy. Whether it’s quick loan approval or flexible EMI options, we offer our customers a wide range of services. 

In a nutshell, you don’t have to disturb your budget any longer in order to install solar because you can easily get a solar panel loan. 

FAQs

1. What is solar financing?

Solar financing is the assistance that’s offered to make things easier for customers. There are two options: EMI schemes and solar loans. The EMI schemes are flexible as well. 

You pay just 30% installation cost upfront. The rest is broken down into monthly installments.

2. Are there any cons of availing a solar loan?

Absolutely not. As long as there are no hidden charges, a solar panel loan does not have any cons. 

3. What are the conditions to get a solar loan?

You need a good credit score, that’s all. The rest is on us.