Paying for a solar system
A 5kW system is a seven-figure purchase. How you pay for it changes the payback period as much as which panel you pick.
Bank solar financing
Roughly 12–22% per yearMost large banks run a solar product secured against the system or your salary account. Tenures run 3–7 years. Expect processing fees of 1–2% and a requirement that the installer be on the bank’s approved list.
Installer instalment plans
Often “0%” with a higher sticker priceConvenient, but compare the instalment total against the cash price from another installer. The financing cost is usually built into the hardware rate rather than shown separately.
Paying cash
No financing costIf the money is sitting in a savings account earning less than the loan rate, cash almost always wins. Ask for a discount. Most installers price cash 3–7% below their financed rate.
The only comparison that matters
Put every offer into the same shape: total amount paid over the full term, including fees and insurance. Then compare that against your current annual electricity spend. If the monthly instalment is lower than the bill the system replaces, the system pays for itself while you are still paying for it. That is the deal worth taking.
Worked example
Say an installer quotes you Rs 735,000 for a 5kW system. Financed over 5 years at 18%, that is about Rs 18,700 a month. If it replaces a Rs 25,000 bill, you are roughly PKR 6,300 a month better off from day one, and you save the whole bill once the loan clears. Put your own quote through the calculator; the arithmetic is what matters here, not the 735,000.