In an effort to promote renewable energy and support sustainable development, the government of Pakistan has launched a solar panel scheme for 2024.
Through collaboration with the State Bank of Pakistan (SBP), the scheme offers a unique financing opportunity based on Islamic principles.
Eligible applicants can secure funding ranging from Rs. 400 million to a remarkable Rs. 6 billion, with an attractive markup rate of 6% and a flexible repayment period of up to 12 years.
The Solar Panel Scheme also facilitates the installation of renewable energy-based projects under the net metering system introduced by the National Electric Power Regulatory Authority (NEPRA).
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Prime Minister Solar Panel Scheme Pakistan | Solar Tubewell Scheme
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Solar Panel Scheme Categories
The Solar Panel Scheme introduced by the government of Pakistan offers three distinct categories, each catering to different types of applicants and their specific goals in the renewable energy sector.
Here are the details for each category:
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Category I
| Category Description | Details |
|---|---|
| Establishing Renewable Energy Power Units: | Designed for setting up renewable energy power units. |
| Capacity Range: | 1 MW to 50 MW. |
| Financing Period: | Up to 12 years, including a 2-year grace period. |
| Maximum Funding: | Up to PKR 6 billion. |
| Purpose: | Generate own electricity and sell excess to the national grid. |
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Category II
| Category Description | Details |
|---|---|
| Installing Renewable Energy Projects: | Designed for sponsors installing renewable energy projects. |
| Capacity Limit: | Up to 1 MW. |
| Financing Period: | Up to 10 years. |
| Grace Period: | 3 months. |
| Maximum Funding: | Up to PKR 400 million. |
| Purpose: | Generate own electricity or sell excess under NEPRA’s Net Metering Regulations. |
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Category III
| Category | Details |
|---|---|
| Category III: RE-IEs Financing: | For Renewable Energy Investment Entities (RE-IEs). |
| Capacity Limit: | Up to 5 MW. |
| Activities: | Sell electricity, lease, rent out, or sell generated power. |
| Financing Period: | Up to 10 years. |
| Grace Period: | 6 months. |
| Maximum Funding: | Up to PKR 2 billion. |
| Purpose: | Support large-scale renewable energy projects. |
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How To Apply For Solar Panel Scheme?
To apply for the Solar Panel Scheme, follow these step-by-step instructions:
| Step | Description |
|---|---|
| Obtain Application Form: | Visit the SBP branch or download it from the SBP website. |
| Fill Out Form: | Provide personal, contact, ID, and business details. |
| Prepare Documents: | Gather ID proof, residence proof, business registration, financial statements, and project details. |
| Submit Application: | Submit the form and documents to the nearest SBP branch or via the SBP website. |
| Await Approval: | SBP reviews and evaluates eligibility and project feasibility. |
| Receive Confirmation: | Upon approval, receive confirmation with terms, approved amount, and repayment schedule. |
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FAQs | Solar Panel Scheme
What is the Prime Minister Solar Panel Scheme in Pakistan?
The Solar Panel Scheme is a government initiative introduced in Pakistan to promote the adoption of renewable energy, specifically solar power.
It provides individuals, businesses, and Renewable Energy Investment Entities (RE-IEs) with financing options and support for the installation of solar panels and renewable energy projects.
What are the eligibility criteria for Category I of the Solar Panel Scheme?
Category I is designed for applicants who want to set up renewable energy power units. The capacity allowed in this category ranges from 1 MW to a maximum of 50 MW for their own use or selling electricity to the national grid.
The financing tenor is 12 years, including a maximum grace period of 2 years, and the maximum financing available is up to PKR 6 billion.
Who can apply for Category II of the Solar Panel Scheme?
Category II is open to sponsors interested in installing renewable energy source-based projects.
The capacity limit in this category is set at 1 MW, and the projects can be for the sponsor’s own use or for selling electricity to the distribution company under NEPRA’s Net Metering Regulations.
The maximum financing tenor is 10 years, with a grace period of 3 months, and the maximum financing available is up to PKR 400 million.
What are the eligibility requirements for Category III of the Solar Panel Scheme?
Category III is specifically for Renewable Energy Investment Entities (RE-IEs) seeking financing for renewable energy projects.
The capacity allowed in this category is 5 MW, and the projects can involve selling electricity or engaging in activities such as leasing, renting out, or selling the generated power.
The maximum financing tenor is 10 years, with a grace period of 6 months, and the maximum financing available is up to PKR 2 billion.
How can I apply for the Solar Panel Scheme?
To apply for the Solar Panel Scheme, interested individuals or entities can follow the guidelines and procedures provided by the State Bank of Pakistan (SBP).
They will need to submit the necessary documentation and meet the eligibility criteria of the respective category they are applying for.
What is the interest rate for the Solar Panel Scheme financing?
The markup rate for the Solar Panel Scheme financing is set at 6% for all categories. This competitive interest rate aims to provide affordable financing options to encourage the adoption of solar power and renewable energy solutions.
Can I install solar panels for residential use under the Solar Panel Scheme?
Yes, under Category II of the Solar Panel Scheme, sponsors can install solar panels for their own residential use and potentially sell excess electricity to the distribution company under NEPRA’s Net Metering Regulations.
The financing available for residential solar projects is up to PKR 400 million.
Can the Solar Panel Scheme facilitate the installation of renewable energy projects under the net metering system?
Yes, the Solar Panel Scheme recognizes the importance of the net metering system in promoting renewable energy.
It facilitates the installation of renewable energy-based solutions and projects under the net metering system introduced by the National Electric Power Regulatory Authority (NEPRA).
Maximum Amount of funding that is issued under the Solar Tubewell Scheme?
The maximum amount of funding issued under the Solar Tubewell Scheme is PKR 2.5 Million per applicant, for solar tubewell or Biogas Plant.
What types of projects can applicants apply for under the Solar Panel Scheme?
The scheme provides funding and support for three distinct types of projects:
Category I: Large-Scale Renewable Energy Power Units – This category is designed for ambitious renewable energy projects with substantial capacity, ranging from 1 MW to an impressive 50 MW. It targets those interested in establishing significant solar power plants capable of contributing significantly to the national energy grid.
Category II: Smaller-Scale Projects – This category caters to projects with a capacity limit of 1 MW, making it ideal for smaller businesses, individual sponsors, and entities interested in initiating moderate-sized solar installations. It offers an opportunity for wider participation in solar energy adoption.
Category III: Specialized Renewable Energy Investment Entities (RE-IEs) – Category III focuses on specialized entities dedicated to renewable energy development. Projects within this category have a capacity of up to 5 MW, allowing RE-IEs to undertake mid-sized solar energy initiatives with government backing
Maximum funding under the Prime Minister Solar Panel Scheme?
After successful review and acceptance of the application candidates can get up to 6Billion in funding for solar panel plants under the Prime Minister Solar Panel Scheme.
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