For many Sri Lankan homeowners, the biggest question about switching to solar isn’t whether it saves money – it’s how to afford the initial investment. While solar energy can drastically reduce or even eliminate electricity bills, the upfront cost of installation is often seen as a barrier.
The good news? There are multiple financing options available in Sri Lanka that make solar more accessible than ever. From bank loans to leasing arrangements and corporate financing plans, you don’t need to pay everything upfront to enjoy the benefits of renewable energy.
In this guide, we’ll explore the different financing pathways for solar panel systems in Sri Lanka, helping you choose the best option for your home.
Why Financing Matters
Solar power is one of the few investments that pays for itself—most homeowners achieve ROI within 4–6 years, while the panels continue generating free electricity for 20–25 years.
But if paying Rs. 1.5M – 5M upfront isn’t feasible, financing spreads the cost into manageable monthly payments. This means:
- Immediate Savings: Your monthly loan repayment is often less than your old electricity bill.
- Cash Flow Flexibility: No need to dip into savings.
- Energy Independence: Enjoy the benefits of solar right away.
Option 1: Bank Loans for Solar Systems
Several leading Sri Lankan banks offer green energy or solar loans with preferential interest rates.
- Tenure: 5–7 years (some extend up to 10).
- Interest rates: Lower than standard personal loans.
- Secured or unsecured options.
- Immediate ownership of the system.
- Can claim available tax or green energy incentives.
- You carry responsibility for maintenance.
- Loan approval may require credit checks and documentation.
Example: A 5 kW system costing Rs. 3M could be financed at Rs. 50,000 per month for 5 years, less than what many households currently pay for electricity.
Option 2: Solar Leasing
In a leasing model, you don’t buy the system upfront; instead, you lease it from a solar provider like Hayleys Solar.
- You pay a fixed monthly lease fee.
- The provider installs and maintains the system.
- At the end of the lease (often 15–20 years), you may own the system outright.
- Zero upfront cost.
- Maintenance and service included.
- Predictable monthly payments.
- May not be as cost-efficient long-term compared to ownership.
- Less flexibility in system upgrades.
Option 3: Power Purchase Agreements (PPA)
Under a PPA, you pay only for the electricity generated by the solar system, not the system itself.
- A solar company installs panels on your roof at no upfront cost.
- You buy the generated electricity at a fixed rate (lower than the CEB tariff).
- The provider handles installation, monitoring, and servicing.
- No upfront investment.
- Lower per-unit costs than grid electricity.
- No worries about operation and maintenance.
- Savings may be smaller than owning the system outright.
- Long-term contracts (10–20 years) may apply.
Option 4: Corporate and Employer Schemes
Some employers and corporate partnerships (often through sustainability initiatives) offer solar financing for staff or corporate buildings.
- Deduction from salary in instalments.
- Employer-subsidised rates.
- Partnerships with financial institutions.
Option 5: Hybrid Solutions
Hayleys Solar often combines bank loans and net metering savings into hybrid financing models. This ensures repayments are aligned with actual savings, making the switch risk-free.
Factors to Consider When Choosing a Financing Option
- Monthly Budget: Can you afford a higher repayment for faster ownership, or do you prefer lower monthly payments over a longer term?
- System Size: Larger systems mean higher cost—but also higher savings.
- Energy Tariffs: Rising electricity prices mean even greater long-term ROI.
- Flexibility: Do you want to own your system outright or simply enjoy cheaper electricity?
Frequently Asked Questions
Ownership via bank loan usually provides the highest lifetime savings.
Yes, many banks extend financing to hybrid systems with storage.
Yes, depending on the availability of green energy subsidies.
Financing is no longer a barrier to going solar in Sri Lanka. Whether you prefer to own your system outright through a loan, enjoy hassle-free leasing, or pay only for the power you use via a PPA, Hayleys Solar can customise a plan to fit your needs.
Explore Hayleys Solar’s financing options today and start saving on electricity from day one.
