The consumption of electrical energy in houses has been growing through the years. It varies from season to season. If a family will get an electrical energy invoice of Rs. 2000 through the wet season, it may possibly simply go as much as Rs. 5000 throughout sizzling summer season days, which is dear for a standard man. The household additionally doesn’t wish to run ACs at free will and are extra cautious when operating an AC at residence as a result of he’s afraid of the excessive electrical energy invoice. In such a state of affairs, a home-owner begins on the lookout for options to cut back his electrical energy invoice. One such super-effective different is the applying of photo voltaic power and producing free energy. But folks typically face just a few challenges when putting in a photo voltaic system. These are:
i) No mortgage financing obtainable for photo voltaic system set up and
ii) Availing Net Meters for the photo voltaic system.
Now let’s find out about face these challenges whereas putting in a photo voltaic system.
Can we get a mortgage on the photo voltaic system?
Buying a photo voltaic system is rather like shopping for another product like a automotive. Come to think about it, the acquisition and possession of cell phones, automobiles, or houses have grow to be handy lately as a result of straightforward availability of loans and EMI choices. Everyone is aware of purchase cell phones, automobiles, and houses on EMI however are you aware purchase a photo voltaic system on mortgage?
Anyone holding a bank card can simply avail the EMI option on a solar system, however do debit cardholders have this facility? About 80 crores Indians are financial institution cardholders, out of which practically 30 crores folks personal Pradhan Mantri Jan Dhan Yojana debit card (ATM card). Only 50 lakh folks i.e. roughly 1% have bank cards that permit them to avail EMI possibility on the set up of photo voltaic methods.
There are two methods of availing loans on a photo voltaic system.
Option 1: Buy Solar Panel on EMI with Debit Card
A number of banks similar to SBI, HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra Bank, and Federal Bank have already made it simpler to avail mortgage facility by permitting to verify the Loan Eligibility Criteria.
A possible buyer has to ship an SMS like DCEMI<SPACE><final digits of Debit Card Number> to 56767, in case he has an account with HDFC financial institution. One ought to use the identical cellular quantity to ship this textual content message, as is registered with the financial institution. You will get a reply together with your mortgage standing on the identical quantity. If you may be eligible, you’ll get a message relating to your eligibility quantity within the message itself. The likelihood of mortgage approval is simply 0.02% and the cardholder’s approval for a mortgage is determined by the financial institution’s inside database/ standards.
Similarly, you’ll be able to attempt for different banks like:
– SBI Bank – SMS DCEMI to 567676 out of your registered cellular quantity
– ICICI Bank – SMS DCEMI<SPACE><final 4 digits of Debit Card quantity> to 5676766
– Axis Bank – SMS DCEMI<SPACE><final 4 digits of Debit Card quantity> to 5676782
– Kotak Bank – SMS DCEMI<SPACE><final 4 digits of Debit Card quantity> to 5676788
– Federal Bank – SMS DC<SPACE>EMI to 9008915353 or give a missed name to 7812900900
Option 2: Way to Get Home Improvement Loan from the Bank
A number of banks just like the State Bank of India grants loans of as much as Rs.1 lakh for residence enchancment with an rate of interest of practically 8%. The mortgage time period is 4-5 years or extra. A buyer can avail of such loans for putting in the photo voltaic system.
What does a buyer have to avail of a mortgage for Home Improvement?
STEP 1. He wants to go to the nearest financial institution department of his space and discover out concerning the financial institution’s coverage on the Home Improvement mortgage.
STEP 2. The subsequent step is to contact any dealer or a distributor of a non-public photo voltaic firm like Loom Solar in your space. They will give a citation of the scale of the photo voltaic system that the client wants to put in on their very own letterhead. This letter is required for availing of the mortgage.
STEP 3. Now the financial institution will switch practically 80% of the whole worth of the photo voltaic system to the non-public firm’s reseller’s checking account. It would possibly take round 5-7 days for the entire course of.
STEP 4. Then the reseller of the non-public firm will set up the photo voltaic system on the buyer’s premises. When the client palms over the NOC to the reseller, the financial institution transfers the stability 20% to the reseller’s checking account.
What does a reseller have to do to put in a photo voltaic system?
Any individual or a small agency to start out a enterprise of putting in photo voltaic methods ought to get in contact with non-public photo voltaic firms like Loom Solar. All they want is:
1. A store
2. The GST quantity for that space
3. Free funds of Rs. 25,000 – 1,00,000 for funding.
If the above standards are glad they’ll simply grow to be a dealer or a distributor of a non-public photo voltaic firm.
In quick, you’ll know that how are you going to save your earnings tax utilizing solar energy? Many banks give home improvement loan for residence decorations, similar to shopping for furnishings, photo voltaic panel set up, residence portray, residence reconstruction, shopping for residence home equipment, and so forth.
What are the Tax Benefits of Installing A photo voltaic system?
Any skilled one who is working in a job and earns Rs. 5 lakhs or extra in a yr, they’ll declare tax advantages by treating photo voltaic system set up as an expense of their ITR.
Budget 2020 has introduced a brand new tax regime giving taxpayers an choice to pay taxes as per the new tax slabs from FY 2020-21 onwards.
| Total Income (Rs) | Tax Rate |
|---|---|
| Up to Rs 2.5 lakh | Nil |
| From 2,50,001 to Rs 5,00,000 | 5% |
|
From 5,00,001 to Rs 7,50,000 |
10% |
|
From 7,50,001 to 10,00,000 |
15% |
|
From 10,00,001 to Rs 12,50,000 |
20% |
|
From 12,50,001 to fifteen,00,000 |
25% |
|
Above 15,00,000 |
30% |
A possible buyer can simply avail of a house enchancment or Renovation mortgage from the financial institution in connection to putting in a photo voltaic system in his home. It will likely be simpler for him to get the mortgage if he already has a house mortgage with the financial institution because the financial institution may have proof of the client’s credibility. In case, he doesn’t have an present residence mortgage with the financial institution, he can nonetheless avail of the mortgage with related documentation. After he will get accepted for the house enchancment mortgage, the client can declare it as an expense in his ITR as an exemption/ deduction from his whole earnings.
Suppose, there’s a potential buyer with month-to-month earnings of Rs. 75,000 (Rs. 9,00,000 every year) who’s keen on buying a Solar System. This buyer has purchased a 3kW Solar System for his residence at Rs 240,000 on a house enchancment mortgage. The Loan tenure (1 yr to 30 years) will likely be decided on the premise of the individual’s age. The buyer can then negotiate his EMI plan as per his consolation and earnings. If the client pays an EMI Rs 15,000 monthly, then his annual EMI obligation will likely be Rs 180,000 and it is going to be subtracted from his whole annual earnings. Now, the client has to pay earnings tax on the stability (i.e. Rs. 9,00,000 – Rs. 1,80,000) Rs 720,000. For extra data, you’ll be able to contact the nearest mortgage division of the financial institution department.
What are the dangers concerned on this job?
The main threat concerned on this job is that if a buyer is unable to repay the mortgage quantity to the financial institution, the financial institution will go to the reseller firm for restoration.
2. Net Meter for the photo voltaic system
A web meter exhibits photo voltaic manufacturing (Export), grid consumption (Import), and web consumption.
What do you want to get a Net Meter?
There are 4 primary steps you must observe for web meter. Below are given:
1. Check Sanctioned Load on Electricity Bill
If you want to set up a web meter, you’ll have to verify the sanctioned load of your electrical energy meter. A web meter have to be a minimal of 3 kW capability. If any buyer has a web meter of decrease capability, he ought to first get it upgraded to 3 kW capability. Once that is carried out, the client can set up practically 80% of the accepted meter capability at his premises.
2.Visit Your Local Electricity Department
To discover extra about this, a buyer would possibly want to go to his electrical energy workplace.
3. Install Solar System in Your Home
Next he must buy a photo voltaic system.
4. Install Net Meter
A web meter may be put in solely after the set up of the photo voltaic system is full.
Every state has a distinct web metering coverage. To know extra, click here.
List of Banks in India for Rooftop Solar Finance
In India, many banking and non-banking companies provide straightforward photo voltaic finance for rooftop photo voltaic set up. Below is the listing of banks that present houses with photo voltaic loans / straightforward EMI,
1. HDFC Bank Rooftop Solar Finance
HDFC is the most important non-public sector financial institution of India by way of its belongings and market capitalization. It is the third-largest firm listed by the Indian Stock Exchanges. HDFC Bank Limited provides banking and monetary companies to its clients and has its headquarters in Mumbai, Maharashtra. Find out extra data right here:https://www.loomsolar.com/blogs/rooftop-solar-finance/hdfc-home-loan-with-solar-rate
2. SBI Rooftop Solar Finance
The Government of India has set an bold goal of set up of Grid Connected Rooftop Solar Photovoltaic (GC-RSPV) initiatives with capability aggregating 40 GW out of whole incremental goal of 175 GW of Renewable Energy capability by 2022. Find out extra data right here:https://www.loomsolar.com/blogs/rooftop-solar-finance/sbi-home-loan-with-solar-rate
Conclusion
The commonest questions in putting in a photo voltaic system are what would be the total cost, can I get a mortgage or EMI option and where can I get the net meters? You can contact Faridabad’s Loom Solar Company has put in grid-connected photo voltaic methods on loans and web meters at many shoppers’ residence premises.