Solar Loan: Tax Benefits of Installing a Solar Panel

Solar Loan: Tax Benefits of Installing a Solar Panel

By admin | October 11, 2021

One of the chief operational costs of running a business is due to electricity consumption. And when a business needs to increase its output, electricity costs also rise proportionately. This is equally applicable to the residential sector as well, where more and more electricity is being consumed, especially in today’s remote working era. There is, however, an environment-friendly and effective way to get saving on these costs. And that is through installing a solar rooftop panel and getting clean, free energy.

But that’s not all. Installing a solar panel at your commercial or residential property can also yield you tax benefits. According to government policy, any person who earns 5. Lakhs or more per annum can claim tax benefits, by listing down solar panel installation in their ITR.

To get your rooftop solar installation only two major steps are required:
1) Get a loan to purchase your solar unit
2) Install a Net Meter for the panel

The first step is quite simple. You can approach banks for a home improvement loan, which requires substantial documentation and long processing times. Alternatively, you can approach Electronica Finance Ltd. (EFL) and get their Rooftop Solar Loan. They are the only NBFC in the market that offers a solar loan and assists you with connecting you to the reseller, for sourcing the panel and installation.

Their solar panel loan offers up to 75% of the system/installation value, with a loan term of up to 5 years, at flexible interest rates and quick processing times. If your loan value is up to 50 lakhs, they offer collateral-free loans on the same. The loan approval depends on your credit score, your business age and ownership of at least one premises.

Next, you need to install a net meter to calculate production, grid consumption and net consumption. First, check the sanctioned load on your meter, which must have a minimum capacity of 3 kW. Once done, you can install up to 100% of the approved meter capacity. For further details, visit your local electricity office. Once these steps are followed, you can install your rooftop solar unit and net meter. However, if you avail of the Rooftop Solar Loan from EFL, they will support you with all of these steps and make the process much smoother.

So, whether you want to install a solar unit on your office premise roof, or on the terrace of your house, EFL can make your introduction to next-gen solar energy much easier, and you can start reaping the many benefits of Solar Energy sooner!

Click here to know more about EFL’s Rooftop Solar Loan

Electronica Finance
Electronica Finance

We at Electronica Finance are on a mission to simplify the Finance for MSME businesses & to be a Globally Trusted Financial Partner for MSMEs, with a DNA of 'Customer First Approach'.

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