In a bid to promote the adoption of solar energy, Meezan Bank has introduced an updated interest-free installment plan for the purchase of 5 kilowatt (5KW) solar systems, effective from April 2025. This initiative is designed to help households and businesses reduce their electricity costs and lessen their dependence on the national power grid.
The 5KW solar system is an ideal choice for medium-class households, as it can power essential appliances such as an inverter air conditioner, fans, lights, and a refrigerator. The total cost of installing a 5KW solar system ranges from Rs 650,000 to Rs 730,000, depending on the quality of components such as the inverter and solar panels.
Under this updated plan, Meezan Bank offers an interest-free financing option that makes it easier for users to acquire a solar system by paying a down payment and spreading the cost over a period of three years. The financing is based on the Islamic concept of Musawamah, which ensures the absence of interest charges while still offering flexible repayment terms.
To participate in the plan, applicants must make a 20% down payment. For a system priced at Rs 650,000, this amounts to Rs 130,000. Following the down payment, customers will pay a fixed monthly installment according to the schedule provided by the bank.
The updated installment plan for a 5KW solar system, costing Rs 650,000, is as follows:
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May 2025: Rs 19,184
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June 2025: Rs 19,211
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July 2025: Rs 18,859
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August 2025: Rs 18,875
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September 2025: Rs 18,707
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October 2025: Rs 18,371
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November 2025: Rs 18,371
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December 2025: Rs 18,046
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January 2026: Rs 18,036
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February 2026: Rs 17,868
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March 2026: Rs 17,277
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April 2026: Rs 17,532
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May 2026: Rs 17,234
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June 2026: Rs 17,196
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July 2026: Rs 16,909
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August 2026: Rs 16,860
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September 2026: Rs 16,692
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October 2026: Rs 16,421
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November 2026: Rs 16,356
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December 2026: Rs 16,096
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January 2027: Rs 16,020
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February 2027: Rs 15,852
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March 2027: Rs 15,457
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April 2027: Rs 15,517
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May 2027: Rs 15,284
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June 2027: Rs 15,181
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July 2027: Rs 14,959
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August 2027: Rs 14,845
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September 2027: Rs 14,677
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October 2027: Rs 14,471
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November 2027: Rs 14,341
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December 2027: Rs 14,146
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January 2028: Rs 14,005
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February 2028: Rs 13,837
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March 2028: Rs 13,648
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April 2028: Rs 13,501
Meezan Bank also charges a processing fee of Rs 5,000, along with additional Federal Excise Duty (FED) and Sales Tax on Services (STR) charges, which amount to Rs 1,000.
One of the key benefits of the solar system installation is the opportunity to participate in net metering. This allows users to sell excess power generated by their solar systems back to the national electricity grid, providing an additional financial incentive and contributing to a cleaner environment.
