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Solar Panel Subsidy in Pakistan 2026 — Government Schemes Explained

Solar Panel Subsidy in Pakistan 2026 — Government Schemes Explained

Solar Panel Subsidy in Pakistan 2026 — Government Schemes Explained

Pakistan’s government has introduced several solar subsidies and financing schemes to make solar energy accessible to all income groups. From the PM Solar Programme to bank green financing, this guide explains every scheme available in 2026 — eligibility, how to apply, and what you actually get.

1. PM Solar Programme (Roshan Ghar)

The Prime Minister’s Roshan Ghar Initiative aims to distribute subsidized solar panels to low-income households. Under the scheme, eligible consumers receive solar systems at below-market prices through ESCO-licensed installers and development finance institutions.

DetailInfo
Target beneficiariesDomestic consumers using under 200 units/month (protected category)
System sizeTypically 0.5kW–1kW (solar home systems)
Subsidy amountUp to 30–50% of system cost (varies by scheme iteration)
ApplicationThrough ESCO-registered installers or NADRA-linked portals
💡 Note: The PM Solar Programme has gone through multiple iterations. Always verify current scheme availability at aedb.org.pk or your nearest DISCO office, as details change with each budget cycle.

2. Green Banking / Solar Financing by Commercial Banks

BankProductRate (approx.)Tenure
HBLHBL Noor Solar Loan12–16% per annumUp to 5 years
Bank AlfalahSolar Financing11–15% per annumUp to 5 years
MCB BankMCB Solar Finance12–16% per annumUp to 5 years
Meezan BankSolar Diminishing Musharakah13–17% per annum (Islamic)Up to 5 years
NBPKissan Solar SchemeSubsidized (agriculture)Up to 7 years

3. AEDB Net Metering Incentive

While not a direct cash subsidy, NEPRA’s net metering policy is effectively a permanent ongoing subsidy — your DISCO credits exported solar units at full retail tariff (Rs 45–60/unit), enabling complete bill offset for many homes.

4. SBP’s Refinancing Scheme for Renewable Energy

The State Bank of Pakistan (SBP) has a refinancing scheme for renewable energy projects. Under this scheme, banks can offer solar loans at below-market rates (7–10% for eligible projects). Commercial and agricultural solar projects of 1MW+ typically qualify.

5. Tax Exemptions on Solar Equipment

The Federal Board of Revenue (FBR) exempts solar panels, inverters, and related equipment from custom duties and sales tax under the Solar Energy Policy. This effectively reduces equipment costs by 15–25% compared to unexempted prices — a built-in subsidy all buyers automatically benefit from.

📊 Tax saving example: A 5kW system with equipment cost of Rs 4 lakh. Without exemption, GST + customs duties would add Rs 60,000–100,000. The exemption saves this amount automatically.

How to Find Current Solar Subsidies

  1. Visit aedb.org.pk for the latest AEDB-approved schemes
  2. Check your provincial government website — Punjab, KPK, and Sindh have run their own solar programmes
  3. Ask your bank’s solar desk about current green financing products
  4. Consult your DISCO for any utility-sponsored solar programmes

Frequently Asked Questions

❓ Is there a government subsidy on solar panels in Pakistan in 2026?
Yes, multiple schemes exist including the PM Roshan Ghar initiative for low-income households, bank green financing at reduced rates, and tax exemptions on solar equipment that benefit all buyers.
❓ How can I get a free solar panel from the government in Pakistan?
Fully free panels are not available. The PM Solar Programme offers heavily subsidized systems for the lowest-income tier (consumers using under 200 units/month). Check with your nearest DISCO or AEDB office for current programme status and eligibility.
❓ Can I get a solar loan in Pakistan without collateral?
Some banks offer solar loans without collateral for smaller systems (under Rs 5 lakh) based on salary/income verification. HBL and Bank Alfalah have offered unsecured solar financing products. Check with your primary bank where you have an existing account.
Know how much your solar system will cost?

Check our 5kW and 10kW system price guides to plan your investment before approaching a bank or installer.

Sources & references

Tariff, net-metering, and policy details on this page draw on the following official sources. Rates change often, so confirm current figures with the relevant authority or a licensed installer before you decide.

  • NEPRA — National Electric Power Regulatory Authority: electricity tariffs and the 2026 shift from net metering to net billing.
  • AEDB — Alternative Energy Development Board: solar policy, installer standards, and net-metering guidance.
  • Your local distribution company (DISCO) — for example LESCO, K-Electric, IESCO, MEPCO, PESCO or QESCO — for area-specific tariffs and the net-metering application process.
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