Ready to go solar? Say goodbye to power bills and hello to the sun! Let’s dive into payment options and budgeting for solar panels for home.
The current rate of solar panel installation is around Rs. 60 per watt, and the size of your solar panel system will determine the overall cost.
It’s essential to ensure that the initial installation goes correctly to maximize the lifespan of your solar panel for home and enjoy long-term benefits. For this reason, contact professional solar panel installers.
At Freyr Energy, we have flexible solar finance options to provide you with all kinds of solar panels for home installation and maintenance services. To ensure additional safety, you can also opt for our various plans available at reasonable costs.
Investing in solar panels for home in India can be the best financial decision in the long run. So why not switch to solar power today and save money on your energy bills while contributing to a greener future?
Options for Solar Panel Financing in India
When it comes to financing for solar panels, it is easier than ever to get started with many choices for their solar panel financing available to homeowners across India. We are seeing an abundance of financing options with solar panel financing, government-backed subsidies, just to name a few. This means that there are several choices available to reduce the upfront cost of solar power loans through banks or NBFCs loan companies financing options. Since many solar companies have excellent monthly and other EMI options, you can afford to pay for the system monthly in installments without any reduction in quality. The financing for solar installation companies are helping you enjoy the solar benefits you have been wanting without it causing too much of a problem with your budget and that is a real service. The financing for solar installation makes the option of loans for solar installation a practical possibility for many households.
Key Considerations for Solar Panel Financing
When purchasing solar panels it is beneficial to think ahead about the right solar panel financing option so you can gain the best benefits from the purchase. Matters such as repayment terms, rebates, lender reliability and your own financial circumstances will affect your loan choice, and hence you will find it easier/cheaper to borrow, or not.
There is a great deal to consider when researching loans to buy solar power, including loan term, interest rate, repayment options and loan features.
Solar Power Loan Terms: Check the interest rate, tenure, and repayment flexibility before choosing a loan.
Subsidies and Incentives: Look for government programs that allow subsidies upfront or with performance rebate or incentive programs, allowing you to lower your upfront costs.
Reputation of Lenders: Look for a reputable lender that offers transparent loan terms and has reliable customer service.
Credit Score and Eligibility: Your credit score is important for qualifying for a loan, and will help in receiving an interest rate that is better than other options.
Payment Cycle: Ensure the EMI schedule fits your monthly budget and financial planning.
Types of Solar Panel for Home Financing in India
If you’re considering investing in solar panels for home in India, you may wonder about your financing options. Purchasing your solar panel system outright, leasing it, or buying solar power through a Power Purchase Agreement (PPA) are the common routes you can opt for:
- Purchasing your solar panel system outright: Purchasing solar panels for home can be a significant investment, with a typical rooftop solar photovoltaic system costing around ₹1.5 to ₹1.8 lakhs for a 3 kW system. While plans are available, you can expect an upfront investment, which may seem daunting.
However, it’s essential to remember that there are government incentives and bank loans available that can make the investment more manageable. In order to ensure you’re making the best financial decision for your budget and needs, you may check with your chosen solar financing companies in India or installers for quotes.
- Leasing Solar: Regarding financing solar panels for home systems, leasing is a popular option that falls somewhere between the OPEX and CAPEX models. With a lease model, you’ll typically pay an upfront cost and then equal installments over a few years, after which ownership of the project transfers to you.
However, it’s important to note that if you lease the system or sign a PPA, a third party will own the solar panel system, which can impact factors: cost, maintenance, and financial offsets.
- Power Purchase Agreement: A solar power purchase agreement (PPA) is a financial agreement where a solar developer handles the design, financing, permitting, and installation of a solar panel system on your property, typically at little or no cost. You only pay for the power generated by the system, which is often cheaper than your local utility’s retail rate, and the developer receives the income from selling the electricity.
With a PPA, you can benefit from fixed, predictable electricity costs and reduced energy bills for up to 25 years. Additionally, the developer is responsible for maintaining the system’s performance and operating risk, which limits your risk exposure. Plus, solar PV systems can increase the value of your property, and with a PPA, you can invest in your home without any upfront costs.
However, PPAs are commonly offered for larger solar system sizes of 100kW or more and are not suitable options for homeowners in India, whose typical requirement is up to 10kW.
Each option has its advantages and drawbacks, so it’s essential to carefully consider the right fit for your needs. In this article, we’ll take a closer look at the pros and cons of buying versus leasing solar panels for home
Specific Programs and Institutions for Solar Panel Financing
India has publicized multiple government schemes, as well as entered into collaborations with financial institutes, to facilitate people’s ease of implementing solar Power. In addition to many programs (one of which is called the PM Surya Ghar Muft Bijli Yojana), people’s solar power loans are subsidized or made easy to access.
PM Surya Ghar Muft Bijli Yojana: The PM Surya Ghar Muft Bijli Yojana, is a scheme providing free rooftop solar electricity to eligible households across the country, particularly benefiting low-income and rural households and reducing their bills. The government will provide up to 60% subsidies for systems less than or equal to 2 kW and 40% for modules with a capacity between 2 and 3 kW, which makes clean energy affordable and accessible.
Pros & Cons of Leasing Solar Panels
Let’s analyze the pros and cons of leasing solar panels and how it affect the solar panel price in India.
Pros of Leasing Solar Panels
- No upfront cost
- Reduced electricity bills
- No need to invest a large amount of money initially
- Regular maintenance
Cons of Leasing Solar Panels
- Cannot claim tax benefits
- Have to wait for a certain period
- The residential solar leasing companies own the solar panels
- May face complications when selling a house
- The solar panel leasing companies minimum credit standards may be a barrier
Leasing solar panels is a good option for those who want to switch to solar energy and save on electricity bills without the initial investment. However, it has certain drawbacks: limited ownership and tax benefits.
Ultimately, the decision to lease or buy solar panels depends on individual circumstances and goals. Understanding the pros and cons of each option can help you make an informed decision on the solar panel price in India.
Additionally, the process can be cumbersome with documentation & due diligence needs to be done before entering the agreement. This can make it a long-drawn process and hence is not very popular, especially with residential solar system owners
How To Apply for Solar Panel Loans In India and necessary documents requirement
Obtaining solar panel loans in India is fairly simple. First, choose the bank, NBFC, or solar company you want to use, ensuring they have a good interest rate and repayment period. Next, complete the loan application online or at the branch, and you will need to provide the documents required which usually consist of: identity proof (Aadhaar, PAN, passport), proof of address (Aadhaar or utility bill), proof of income (salary slips, ITR, or bank statements), passport size photographs, loan form, and a quote or invoice from your solar company. The lender will check your credit score and application documents prior to being eligible for loan for solar installation, which is why its so important that you follow the exact documents process to ensure an easy and fast process.
Freyr Energy: Affordable Solar Panel System
Investing in solar panels can be a smart financial decision for homeowners, but the upfront cost can be a deterrent. Fortunately, Freyr Energy offers solar loan options to help make solar panel price in India more accessible. Here are some key benefits of financing your solar panel purchase with Freyr Energy:
- Hassle-Free Quick Approvals: Freyr Energy understands the importance of quick approvals, digital loan evaluation, and a sanction process. It means you can get approved for a solar loan within 48 hours without lengthy paperwork or complicated procedures.
- Flexible EMI Option: Freyr Energy offers a zero-cost EMI option for up to 6 month tenures, making it easier for customers to pay for their solar panels in instalments. Additionally, Freyr Energy offers multiple financing options ranging from 3 months to 5 years to provide flexibility to our clients without hidden fees or charges.
- High-Quality Products: Freyr Energy prides itself on providing high-quality solar panels and other components for its customers. Their products are durable, efficient, and reliable, ensuring that homeowners get the most out of their investment.
- Customized Solutions: Every homeowner’s energy needs are different, which is why Freyr Energy provides customized solutions for their customers to buy solar panels. They take into account factors such as the size of the property, energy consumption, and budget to create a tailored solar panel system that fits the unique needs of each homeowner.
- Expertise and Experience: Freyr Energy has years of experience in the solar energy industry, and its team of experts can provide valuable guidance and advice to homeowners looking to invest in solar panels. From system design to installation and maintenance, Freyr Energy can help homeowners navigate the process and ensure a smooth transition to solar energy.
- Warranty and Maintenance: Freyr Energy offers warranties and maintenance services for their solar panels, ensuring that homeowners can enjoy the benefits of solar energy with no worries about maintenance or repair costs.
- Environmentally Friendly: By investing in solar energy, homeowners can reduce their carbon footprint and contribute to a cleaner, more sustainable future. Freyr Energy’s solar panels are environmentally friendly, using clean energy to power homes and reduce reliance on fossil fuels.
Financing your solar panel price in India with Freyr Energy can be a smart financial decision, offering numerous benefits such as hassle-free quick approvals, customized solutions, expertise and experience, warranty and maintenance, and environmentally friendly products.
With Freyr Energy, homeowners in India can enjoy the benefits of solar energy while saving money on their electricity bills and contributing to a cleaner, more sustainable future.
Frequently Asked Questions
Solar panels for lease involves renting solar panels for home from a third-party owner, while solar financing options include loans and solar power purchase agreements (PPAs) that allow you to own the system.
It depends on your financial situation, as paying cash upfront will result in more savings over time, but financing can make solar more affordable for those who cannot afford to pay upfront.
Leasing can be a good option for those who want to save money on their electricity bills without the upfront cost of ownership, but it does not provide the same financial benefits as owning the system.
The decision to buy or lease solar panels ultimately depends on your financial situation, long-term goals, and personal preferences, so it’s important to do your research and consult with a solar expert to determine the best option for you.
Proof of identity, address, income, photos, loan form, and solar panel quotation are required for a solar panel loan.
Personal loans or dedicated solar power loans with low interest and flexible EMIs are best for solar panel financing.
Finance options include bank loans, NBFC loans, government subsidies, and EMI-based loans for solar installation from solar providers.
