The consumption of electrical energy in houses has been growing over time. It varies from season to season. If a family will get an electrical energy invoice of Rs. 2000 through the wet season, it will possibly simply go as much as Rs. 5000 throughout scorching summer season days, which is dear for a typical man. The household additionally doesn’t need to run ACs at free will and are extra cautious when operating an AC at dwelling as a result of he’s afraid of the excessive electrical energy invoice. In such a state of affairs, a house owner begins in search of options to cut back his electrical energy invoice. One such super-effective different is the appliance of photo voltaic power and producing free energy. However individuals typically face a number of challenges when putting in a photo voltaic system. These are:
i) No mortgage financing out there for photo voltaic system set up and
ii) Availing Web Meters for the photo voltaic system.
Now let’s study how one can face these challenges whereas putting in a photo voltaic system.
Can we get a mortgage on the photo voltaic system?
Shopping for a photo voltaic system is rather like shopping for some other product like a automotive. Come to consider it, the acquisition and possession of cellphones, automobiles, or houses have change into handy lately because of the straightforward availability of loans and EMI choices. Everybody is aware of how one can purchase cellphones, automobiles, and houses on EMI however have you learnt how one can purchase a photo voltaic system on mortgage?
Anybody holding a bank card can simply avail the EMI choice on a photo voltaic system, however do debit cardholders have this facility? About 80 crores Indians are financial institution cardholders, out of which practically 30 crores individuals personal Pradhan Mantri Jan Dhan Yojana debit card (ATM card). Solely 50 lakh individuals i.e. roughly 1% have bank cards that enable them to avail EMI choice on the set up of photo voltaic programs.
There are two methods of availing loans on a photo voltaic system.
Possibility 1: Purchase Photo voltaic Panel on EMI with Debit Card
A couple of banks reminiscent of SBI, HDFC Financial institution, Axis Financial institution, ICICI Financial institution, Kotak Mahindra Financial institution, and Federal Financial institution have already made it simpler to avail mortgage facility by permitting to verify the Mortgage Eligibility Standards.
A possible buyer has to ship an SMS like DCEMI<SPACE><final digits of Debit Card Quantity> 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’ll get a reply along with your mortgage standing on the identical quantity. If you can be eligible, you’ll get a message relating to your eligibility quantity within the message itself. The possibility of mortgage approval is simply 0.02% and the cardholder’s approval for a mortgage is dependent upon the financial institution’s inner database/ standards.
Equally, you may strive for different banks like:
– SBI Financial institution – SMS DCEMI to 567676 out of your registered cellular quantity
– ICICI Financial institution – SMS DCEMI<SPACE><final 4 digits of Debit Card quantity> to 5676766
– Axis Financial institution – SMS DCEMI<SPACE><final 4 digits of Debit Card quantity> to 5676782
– Kotak Financial institution – SMS DCEMI<SPACE><final 4 digits of Debit Card quantity> to 5676788
– Federal Financial institution – SMS DC<SPACE>EMI to 9008915353 or give a missed name to 7812900900
Possibility 2: Technique to Get House Enchancment Mortgage from the Financial institution
A couple of banks just like the State Financial institution of India grants loans of as much as Rs.1 lakh for dwelling 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 House Enchancment?
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 House Enchancment mortgage.
STEP 2. The following step is to contact any vendor or a distributor of a personal photo voltaic firm like Loom Photo voltaic in your space. They are going to give a citation of the scale of the photo voltaic system that the shopper 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 full worth of the photo voltaic system to the personal firm’s reseller’s checking account. It’d take round 5-7 days for the entire course of.
STEP 4. Then the reseller of the personal firm will set up the photo voltaic system on the buyer’s premises. When the shopper 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 begin a enterprise of putting in photo voltaic programs ought to get in contact with personal photo voltaic corporations like Loom Photo voltaic. 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 happy they’ll simply change into a vendor or a distributor of a personal photo voltaic firm.
Briefly, you’ll know that how will you save your earnings tax utilizing solar energy? Many banks give dwelling enchancment mortgage for dwelling decorations, reminiscent of shopping for furnishings, photo voltaic panel set up, dwelling portray, dwelling reconstruction, shopping for dwelling home equipment, and many others.
What are the Tax Advantages of Putting in 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.
Funds 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.
|Whole Revenue (Rs)||Tax Charge|
|As much as Rs 2.5 lakh||Nil|
|From 2,50,001 to Rs 5,00,000||5%|
From 5,00,001 to Rs 7,50,000
From 7,50,001 to 10,00,000
From 10,00,001 to Rs 12,50,000
From 12,50,001 to fifteen,00,000
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 is going to 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 shopper’s credibility. In case, he doesn’t have an current dwelling mortgage with the financial institution, he can nonetheless avail of the mortgage with related documentation. After he will get accredited for the house enchancment mortgage, the shopper can declare it as an expense in his ITR as an exemption/ deduction from his complete earnings.
Suppose, there’s a potential buyer with month-to-month earnings of Rs. 75,000 (Rs. 9,00,000 every year) who’s eager about shopping for a Photo voltaic System. This buyer has purchased a 3kW Photo voltaic System for his dwelling at Rs 240,000 on a house enchancment mortgage. The Mortgage tenure (1 yr to 30 years) will probably be decided on the premise of the individual’s age. The shopper can then negotiate his EMI plan as per his consolation and earnings. If the shopper pays an EMI Rs 15,000 monthly, then his annual EMI obligation will probably be Rs 180,000 and will probably be subtracted from his complete annual earnings. Now, the shopper has to pay earnings tax on the stability (i.e. Rs. 9,00,000 – Rs. 1,80,000) Rs 720,000. For extra info, you may contact the nearest mortgage division of the financial institution department.
What are the dangers concerned on this job?
The main danger 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. Web Meter for the photo voltaic system
A web meter reveals photo voltaic manufacturing (Export), grid consumption (Import), and web consumption.
What do that you must get a Web Meter?
There are 4 fundamental steps you must observe for web meter. Beneath are given:
1. Examine Sanctioned Load on Electrical energy Invoice
If that you must set up a web meter, you’ll have to verify the sanctioned load of your electrical energy meter. A web meter should 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. As soon as that is completed, the shopper can set up practically 80% of the accredited meter capability at his premises.
2.Go to Your Native Electrical energy Division
To search out extra about this, a buyer may want to go to his electrical energy workplace.
3. Set up Photo voltaic System in Your House
Subsequent he must buy a photo voltaic system.
4. Set up Web Meter
A web meter will be put in solely after the set up of the photo voltaic system is full.
Each state has a distinct web metering coverage. To know extra, click on right here.
Record of Banks in India for Rooftop Photo voltaic Finance
In India, many banking and non-banking providers supply straightforward photo voltaic finance for rooftop photo voltaic set up. Beneath is the record of banks that present houses with photo voltaic loans / straightforward EMI,
1. HDFC Financial institution Rooftop Photo voltaic Finance
HDFC is the biggest personal sector financial institution of India by way of its property and market capitalization. It’s the third-largest firm listed by the Indian Inventory Exchanges. HDFC Financial institution Restricted affords banking and monetary providers to its prospects and has its headquarters in Mumbai, Maharashtra. Discover out extra info right here:https://www.loomsolar.com/blogs/rooftop-solar-finance/hdfc-home-loan-with-solar-rate
2. SBI Rooftop Photo voltaic Finance
The Authorities of India has set an bold goal of set up of Grid Linked Rooftop Photo voltaic Photovoltaic (GC-RSPV) initiatives with capability aggregating 40 GW out of complete incremental goal of 175 GW of Renewable Power capability by 2022. Discover out extra info right here:https://www.loomsolar.com/blogs/rooftop-solar-finance/sbi-home-loan-with-solar-rate
The most typical questions in putting in a photo voltaic system are what would be the complete value, can I get a mortgage or EMI choice and the place can I get the web meters? You may contact Faridabad’s Loom Photo voltaic Firm has put in grid-connected photo voltaic programs on loans and web meters at many shoppers’ dwelling premises.