Instead, installing a solar panel is nothing short of a long-term investment that helps save a hefty amount in electricity bills per month and has minimal maintenance.
The initial cost of installing a solar power plant with panels is expensive. With the government keen on encouraging more households to adopt green energy, there are financing avenues that cover the wide cost of these plants, and the ROI, overall, allows for a feasible alternative.
How does solar financing help?
Solar panel rates in India are not the cheapest. It does take a toll on an average middle-class person’s pocket to invest initially. This is the right time to shift the focus in financing that allows a considerable respite and gives sufficient payback time for the investor. Let us check out each of these ways and assess how it would help in maximizing benefits:
Banks are the easiest and most accessible avenue for taking a solar loan and financing for the complete installation of solar panels. On average, the net time for lending is between 5–10 years, and in some cases, the tenure could extend to several more years. The prerequisites and collateral demands vary from one bank to another. On average, a bank usually approves a loan for up to 10 lakhs, and based on the tenure chosen, the rate of interest might vary.
Apart from the options of Indian banks, foreign financing is also available for the installation of solar panels. Despite the charging interest rates at par with Indian banks, the total time taken to approve solar power projects is more. It could take anywhere between 6 months to almost a year before the loan is approved and disbursed for the installation of panels.
Leasing is the process in which a product is allowed for usage based on an agreement for a stipulated number of years. There are many major companies as well as service providers across India that are willing to install solar panels and charge you a fixed amount of money for using the system. This is irrespective of how much power you consume, which means there will be a fixed cost for simply using all the equipment and panels.
Power Purchase Agreements
One of the more viable and profitable types of solar panel financing is with a PPA or Power Purchase Agreements. With this setup, a person will pay an agreed amount of money, much like an EMI, to the service provider in exchange for hefty bill savings. Much like leasing, this agreement is long, and the tenure usually fluctuates between 10 and 15 years. Once the tenure of the lease is completed, there is always the option of negotiating a better payout. Or instead, the customer could even buy the entire system from the provider for a cheaper rate.
The Government of India has time and again encouraged Indian residents as well as commercial spaces to adopt and install more means of using renewable energy sources.
Additionally, the government is providing great subsidies that reduce the upfront cost of purchasing solar panels of different sizes. The Ministry of New and Renewable Energy has opened up Central Financial Assistance to cater to a variety of subsidies and grants that ensure comprehensive coverage of solar panel installation for an affordable cost.
Role of Freyr Energy in solar financing
As a brand, Freyr Energy has emerged as the best solar company in India, living up to its reputation in providing financial services that benefit the consumers installing these panels. Freyr Energy has been working endlessly to make solar panels affordable to a larger extent and offers easy solar loan options.
Freyr Energy's partners offer solar financing, whose tenure spans from 3 months to 3 years, and comes with flexible payment schemes. Additionally, Freyr Energy assures better financing rewards and affordable payments when chosen from lending partners.
The advantages that come alongside include:
- Quick loan approvals: The entire procedure is fast. The overall time taken to approve financing, and the project installation could start at the quickest time possible. Freyr Energy claims all loan evaluation, and sanctioning is done within 2 working days after applying for such finances.
- Zero cost EMI option: One of the biggest takeaways of solar financing from the partners of Freyr Energy is the 3–6 month zero cost EMI option.
- No downpayment: Freyr Energy is on a mission to ensure all homes have solar power panels for the generation of power. With this intention, the financing is done in a way in which there would be little to no down payment required upfront. This encourages more people to install solar panels.
- Variety of schemes and customization: Freyr Energy is happy to assist customers with the panels installed in homes. Customers are guided properly with the right size of panels, the cost of installation, and the subsequent financing.