The SBP Renewable Energy Finance Scheme allows commercial banks to lend for solar installations at 6–9% annual markup — significantly below market rates — with repayment over 3–10 years through EMI instalments.
SBP Renewable Energy Refinance Scheme
The State Bank of Pakistan's refinance scheme allows commercial banks to offer solar loans at 6-9% per annum — versus standard market rates of 20%+ for personal loans. The scheme is available for 3 kW to 1 MW systems across residential, commercial, and industrial categories. Currently participating banks include HBL, MCB, UBL, Meezan Bank, Bank Alfalah, and Bank of Punjab among others. Check the current list of participating banks and the applicable interest rate at sbp.org.pk as both change periodically.
How to Apply at Your Bank
Visit your bank branch and ask specifically for the SBP Renewable Energy Scheme solar financing product — not just a general personal loan. Bring: your CNIC, income documentation (salary slips or last 6 months of bank statements for self-employed), a written quotation from your AEDB-registered vendor, property ownership documents or a registered tenancy agreement, and your DISCO consumer number. The bank's credit officer assesses your repayment capacity and, upon approval, disburses the loan amount directly to your vendor.
CM Punjab Green Credit for Punjab Residents
Punjab residents have access to the CM Punjab Green Credit Programme at 0-5% annual markup through partner banks — significantly better than even the SBP RE scheme's rate. Where both are available, apply for both and take whichever offers better terms. See our CM Punjab Green Credit guide for the full eligibility requirements and application process at partner banks.
What to Verify Before Signing the Loan Agreement
Before signing any solar financing agreement: calculate the total amount you'll repay over the full loan term (not just the monthly instalment — multiply instalment by total months); check whether there's a prepayment penalty if you want to pay off early using your solar savings; confirm in writing that the bank disburses payment directly to the vendor, not to you; and verify your vendor is on the bank's AEDB-registered approved vendor list.
Installation and System Problems
Meezan Bank and several other Islamic banks accept 12 months of consistent bank deposit statements as income documentation for self-employed and informal sector applicants. Several banks have specifically adapted their solar loan products for informal sector borrowers as solar adoption has grown.
For formally employed applicants with verifiable salary slips and employer confirmation, most banks waive the guarantor requirement. For self-employed applicants, some banks accept property as collateral in lieu of a personal guarantor.
Frequently Asked Questions
Some banks require property ownership as collateral; others accept a long-term registered tenancy agreement. Ask specifically about renter options — several Pakistani banks have developed products for renters as demand for solar has increased.
Yes — Meezan Bank, Bank Alfalah Islamic, and other Islamic banks offer Sharia-compliant solar financing at the SBP subsidised refinance rate. The legal structure differs from conventional interest-based loans but the effective financing cost is comparable.
HBL and Meezan Bank are consistently mentioned by Pakistani solar installers as having the most streamlined solar financing processes — with dedicated solar product teams in major branches. Bank of Punjab has strong coverage for Punjab-based applicants through the Green Credit programme. The best bank for you depends on where you already have an account, since existing banking relationships typically mean faster processing.
Some banks now offer solar financing to renters with long-term registered tenancy agreements and a landlord consent letter — this has become more common since 2023 as solar adoption grew. Ask specifically about renter options at the branch; don't assume you're ineligible. Meezan Bank and HBL both have adapted products for this scenario in practice.
Contact the bank before you miss a payment — not after. Most banks under the SBP RE scheme have restructuring provisions available for genuine financial hardship cases. Missing payments without communication risks the bank recalling the loan. Since the solar system is the collateral, continued non-payment could result in the bank recovering the panels — a situation that's entirely preventable with early communication.