A Useful Guide on Loan for Solar Panel Installation

Updated on: 29 Jul 2024

You can easily get a loan for solar panel installation and generate electricity. With rising inflation, these substantial electricity bills can be quite difficult to handle. Because of this, you may have to compromise on your electricity usage. By installing solar panels, you can avoid this as it will help reduce your bills significantly.

Read on to know how you can get solar panel loans, the paperwork requirements and more.

How to Get a Loan for Solar Panel Installation?

To get solar panel financing, you need to follow these steps:

Step 1: Research and explore the right type of solar panel loan and lender
Step 2: Choose a loan provider after considering the interest rates, repayment options and other essential factors
Step 3: Check the personal loan eligibility, documentation and other requirements
Step 4: Apply for the loan online or by visiting the branch of the lender
Step 5: Submit the documents requested by the lender

Paperwork Requirements to Get a Loan for Solar Panel Installation

As mentioned above, you need to submit some documents to get solar panel financing. While it varies depending on the lender you opt for, here are the general documentation requirements for loan:

Proof of Identity: Aadhaar card, PAN card, passport, driver’s licence or voter ID
Proof of Home Ownership: Property documents and other evidence of ownership
Proof of Income and Employment: Bank statements, salary payslips or ITR documents

Benefits of Solar Panel Installation

Installing a solar panel in your home comes with a wide range of benefits, such as:

Eco-friendly Energy Resource

Solar power is gaining more popularity as everyone is doing their bit to protect the environment. It is considered a highly sustainable and eco-friendly source of energy.

It helps reduce or delay the impact of climate change and reduces carbon footprint by replacing energy sources that are based on fossil fuels. Unlike traditional non-renewable energy resources, solar power doesn’t release pollutants.

Reduced Electricity Bills

With the installation of solar panels in your home or office, you use the energy generated by these panels, instead of relying on traditional power. With this energy source, you can run various appliances or fixtures, like:

Lights
Fans
Air Conditioners
Refrigerators
Washing machine
Dryers

Since your reliance on traditional power reduces, your electricity bill also reduces. This can help bring down your power bills significantly. Also, since these resources are renewable and non-exhaustible, you can rely on them for your power usage.

Also Read: Home Renovation Loan

Low Maintenance Expenses

After installation, solar panels demand little to no maintenance unless affected by any external or environmental factors. They have a long run without any additional actions from your side as long as you keep them clean and free of debris.

At most, you must get them cleaned 2 times a year. Also, the chances of wear and tear with time are negligible because these panels don’t contain any moveable parts.

Increases the Value of Property

Installing solar panels on your property also helps boost its value. This is because these panels are considered as upgrades to the house, just like a finished basement, modular kitchen or a renovated bathroom.

Home buyers prefer to get a house with solar panels installed in it. This is because they can use it after shifting and minimise their reliance on traditional power and, in turn, reduce their bills.

If you want a more flexible financing option, you can consider getting an Instant Cash Loan from Fibe. You can get up to ₹5 lakhs and it comes with no restriction on end use. So, you can use it to install solar panels and meet various other needs. You also enjoy the flexibility of choosing the repayment duration as per your affordability and preference.

Install the Fibe Personal Loan App and get your hands on the required funds instantly with a streamlined application process and minimal documentation.

FAQs on Solar Panel Installation Loan

Can I get a loan for solar panels for my house?

Yes, you can get solar power loans from various financial institutions. Research and compare the available lenders and then choose the one that offers the loan at the most nominal interest rates.

A quick and easy alternative is getting a personal loan. You can use them to install solar panels since they don’t come with any restrictions on the end usage.

What documents are required for a solar loan?

To get solar power loans, you need to provide the following documents:

Proof of Identity: Aadhaar card, PAN card, passport, driver’s licence or voter ID
Proof of Income and Employment: Bank statements, salary payslips or ITR documents
Proof of Home Ownership: Property documents and other evidence of ownership

What is the interest rate for solar project loans?

Solar loan interest rates depend on the lender you choose. Research and choose a lender that offers the best deal. This helps reduce the overall borrowing cost and makes the repayment easier for you.