Solar Financing Made Easy: Tips and Tricks for Affordable Solar

How to pay for solar today: solar financing tips explained

Solar power has been in the mix of discussion among the masses, where people have shown great interest in installing these panels and making the most of the green energy. Saving money is on one side, solar energy is the most abundantly used renewable source of green energy available today. 

On the other side, there are a ton of rumours circulating among people concerning solar panels and the cost associated with them. People feel the net cost of installing such solar panels would exceed their budgets and that financially it won’t be viable. This certainly is not the case. 

There are more than a handful of grants, subsidies, and ways of solar financing schemes over terraces or other parts of a residential complex.

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.

Solar Panel Financing Tips

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 to financing which 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:

Bank loan

Banks are the easiest and most accessible avenue for taking a solar loan and solar panel 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. 

Solar lease

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.

Government subsidies

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 solar panel 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 affordable 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:

Asked Questions

Yes, you can! Many financial institutions offer loans for solar installation, providing homeowners and business owners with the necessary funds to invest in renewable energy. These solar power loans typically come with competitive interest rates and flexible repayment terms, making solar panel installation more accessible and affordable.

The interest rate of a solar loan varies depending on factors such as the borrower’s credit score, the lender’s terms, and the type of loan chosen. Generally, interest rates for solar panel financing range from around 3% to 9%, making them an attractive option for homeowners looking to invest in renewable energy with affordable financing options.

Yes, you can! Many lenders offer loans for solar power plants with the option to pay through Equated Monthly Installments (EMIs). This solar financing option allows homeowners to spread the cost of solar installation over time, making it more manageable and accessible for those looking to switch to renewable energy.

Yes, financing options like loans for solar rooftop are readily available. These solar loans are designed to help homeowners cover the costs of installing solar panels on their rooftops. With flexible repayment plans, they make transitioning to solar energy more accessible and affordable for everyone.

Freyr Energy partners with leading financial institutions to offer convenient solar financing options to customers. By providing access to loans for solar financing, Freyr Energy makes it easier for homeowners and businesses to invest in solar energy solutions. The advantages include competitive interest rates, flexible repayment terms, zero cost EMI and streamlined application processes, making the transition to solar power seamless and cost-effective.

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