Islamabad: Meezan Bank has announced an attractive interest-free financing plan for 5kW solar systems to encourage adoption among Pakistani households and small businesses. The move is in line with rising electricity tariffs and broader efforts to promote the use of renewable energy.
A typical 5kW solar setup costs between PKR 650,000 and PKR 730,000, depending on the quality of the equipment. Under the new scheme, buyers are required to make a 20% down payment. For instance, PKR 130,000 on a PKR 650,000 system and then repay the amount in 36 monthly installments over three years.
The plan follows the principles of Islamic banking (Musawamah) ensuring that no interest is charged. Instead, fixed monthly payments are made, starting at approximately PKR 19,184 and gradually decreasing over the plan term. Participants can also benefit from net metering, selling excess electricity generated back to the national grid.
Instalment Plan for 5KW Solar (Approx Rs. 650,000) System
| Month | Installment (PKR) |
|---|---|
| June 2025 | 19,184 |
| July | 19,211 |
| August | 18,859 |
| September | 18,875 |
| October | 18,707 |
| …through May 2028 | 14,146–13,501 |
Why 5KW Solar System is Best?
A 5 kW system typically generates 500–600 kWh monthly, sufficient for essential household usage (AC, fridge, fans, lights) .
Households can reduce monthly electricity bills by up to 50%, and potentially sell surplus electricity via net metering.
This financing option makes solar power accessible to middle-income citizens, reducing upfront costs.
Investment Comparison
Here is the crux of investment on 5KW solar system:
Feature Value
System Cost PKR 650,000–730,000
Down Payment (20%) ~ PKR 130,000
Monthly Installment PKR 19,184 → PKR 13,501 over 36 months
No Interest Charged Islamic financing via Musawamah
Net Metering Available Yes with possible income from excess power
Note: Installment amounts include a PKR 5,000 processing fee plus applicable FED and service sales tax, and can vary by exact system cost or bank terms . Buyers should verify with Meezan Bank and authorized dealers before proceeding.
