What is a Solar Loan and How can you Avail it

Buying a car or a house was not an easy process for our grandparents. They would set aside small amounts of money for years, meticulously avoiding any impractical expenses- to be able to save the funds needed to purchase the most reliable car or build the perfect family house.

But not everyone was able to fulfill their dreams this way.

Our generation, in contrast, has an advantage: financing options are available to us. Major expenses on vehicles and property do not appear so major anymore. Loans make it easy for us to fund our wants.

What’s more, we can finance our solar energy systems through loans as well!

What is Solar Financing?

Solar systems require a large investment. The price factor often becomes a hurdle for people who want to switch to green energy but don’t have the capital yet.

Here solar financing comes into the picture.

Solar Financing is a way of generating the funds for the installation of a solar system. Rather than paying the full amount at once, individuals and organizations have the option of spreading out the expense over several years.

The ideal way of utilizing the solar financing option is through a solar loan. Now, Ornate solar has partnered with HDFC bank to make this option available for you. We will help in financing your solar system. Further, you can repay this debt over a set period, through EMIs with a fixed rate of interest.

Both residential and commercial consumers can benefit from a solar loan. Without developing any financial constraints, one can lower their carbon commissions and reduce the electricity bill.

Benefits of a Solar Loan

1. Your Monthly Electricity Savings Becomes your EMI

Just like a car/home loan, there are monthly instalments you have to pay in a solar loan depending on the duration of your loan. But this will not be an additional cost for you. The money you save on electricity bills through your solar system can be used to pay off the EMIs.

Moreover, once the loan is paid off, you will continue to save monthly as solar systems hardly require any maintenance. You can invest that money in lucrative financial schemes such as mutual funds etc. and generate additional income.

2. Investment in a Fixed Asset

Loans are a liability. But with a solar loan, you will be investing in a fixed asset. A solar system will stay with you for more than twenty-five years and provide an excellent return on investment for a long time.

This asset would become completely free, once the debt is paid off in 4-5 years or less.

3. Reduces Electricity Bills

The biggest benefit of going solar is that you will be producing your electricity. This will reduce your dependence on the grid. Also, through net metering, you can sell the surplus energy generated back to the power distribution companies. This value will be adjusted in your electricity bill, which will be significantly reduced.

Moreover, the power tariff is constantly rising. Your initial electricity savings will go towards the EMIs. But after that, your completely paid system will act as a buffer against all future price hikes.

4. Transition to Green Energy

The shift to solar offers an opportunity to reduce our carbon emissions as this energy resource is limitless, localized, and non-polluting.

With a loan, you don’t have to delay the process of starting your green energy journey. You can start contributing to the goal of a greener India from Day 1.

5. Setting a Good Example for Your Children

The future generation needs to be aware of how we can together protect our planet. This is why children today are learning about climate change at schools.

With a solar system at home, your children can learn about how to be more responsible towards the environment and the importance of investing in renewable energy for doing the same.

 

The Process of Getting a Solar Loan

The process is as simple as getting a car loan.

An application for the funds along with the proposal for your solar plant has to be submitted to us. You will also have to submit some basic documentation such as the electricity bills for the past 6 months with us. HDFC Bank will check your credit score, and eligibility before starting the procedure.

Once the loan is approved, HDFC Bank will pay up to 75% of the total amount of the solar plant. 25% will be paid by the customer as a down payment.

Based on the maturity period of the loan, an Equated Monthly Instalment (EMI) will be decided. This EMI is inclusive of the amount payable and the interest charged. If the tenure is long, the payments would be smaller.

While the decision of choosing a tenure can be based on your ability to pay, we recommend choosing a shorter tenure as it leads to better savings.

Why Choose Ornate Solar Financing Scheme

Ornate Solar is providing residential and commercial consumers, an opportunity to raise the funds for their solar energy system by partnering with HDFC bank.

HDFC Bank is one of the premier private sector banking institutions in India, with over 1400 branches spread across the country. The institution is known for its fast approval of loans and is trusted by millions of Indians.

With Ornate Solar Financing Scheme, you can avail of a loan for solar projects from 10 kW up to 1 MW capacity. All you have to do is, make a down payment of 25% of the total cost. The rest 75% of the amount, will be financed through the bank. *The principal amount and interest would be as per the discretion of HDFC bank.

The short tenure of up to 60 months, will ensure that you pay off your loan early and maximize your savings. Moreover, the EMIs are affordable, so you can allocate the amount you used to pay for your electricity bills towards the payments.

To make the entire process simple and stress-free, we have eliminated the tedious task of visiting the bank for approval and sanctions. Ornate Solar will be your one-stop for going solar.

Coal and gas are unpredictable resources. Sooner or later, we all would have to shift from traditional energy to solar energy. With our solar loan, we can reduce the financial burden of this transition.

Check out Ornate Solar Finance, if you are interested in funding your solar installation or have any doubts or inquiries about the process.

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Nidhi-Sharma

About The Author

Nidhi Sharma is a content developer at Ornate Solar. She has done her bachelors in English and masters in Sociology. Prior to Ornate, Nidhi worked as a writer for different brands from health, aviation and pharma industry. She is passionate about sustainability and is currently exploring all things solar!

Nidhi-Sharma

About The Author

Nidhi Sharma is a content developer at Ornate Solar. She has done her bachelors in English and masters in Sociology. Prior to Ornate, Nidhi worked as a writer for different brands from health, aviation and pharma industry. She is passionate about sustainability and is currently exploring all things solar!