Solar Financing for Housing Societies: Because Solar is the Need of the Hour

Solar for Housing Societies


Investing in a solar rooftop system can transform housing societies into sustainable and energy-efficient communities. However, the upfront cost of solar installations often becomes a hurdle for Resident Welfare Associations (RWAs). This is where solar financing for housing societies plays a pivotal role in making the transition to solar energy affordable and accessible.

In this article, we’ll explore various financing options, subsidies, and strategies available to housing societies in India, helping them successfully implement solar rooftop projects.

Why Solar Financing Matters

The cost of installing a solar rooftop system for a housing society typically ranges between ₹5–₹10 lakhs for smaller systems and can exceed ₹25 lakhs for larger installations. Financing solutions help housing societies overcome this financial barrier, allowing them to:

  • Reduce reliance on grid electricity.
  • Lower operational costs for shared utilities.
  • Achieve sustainability goals without financial strain.

Understanding the options for solar financing for housing societies ensures that every RWA can participate in India’s renewable energy movement.

Options for Solar Financing in Housing Societies

1. Government Subsidies and Incentives

The Indian government provides significant financial incentives to promote rooftop solar installations:

  • Subsidies Under MNRE (Ministry of New and Renewable Energy):
  • State-Level Incentives: Some states offer additional rebates and subsidies that reduce the net cost of solar installations.

These subsidies significantly lower the upfront cost, easing the burden of solar financing for housing societies.

2. Loans from Financial Institutions

Many banks and non-banking financial companies (NBFCs) in India offer solar-specific loans at competitive interest rates.

  • Key Features of Solar Loans:
    • Low-interest rates (typically 8–12%).
    • Flexible repayment tenures of up to 7–10 years.
    • Coverage for installation, equipment, and associated costs.

Housing societies can explore dedicated green financing schemes, ensuring smooth solar financing for housing societies.

3. RESCO Model (Renewable Energy Service Company)

The RESCO model is an innovative financing solution where a third-party developer installs and maintains the solar system at no upfront cost.

  • How it Works:
    • The RESCO developer owns the solar system and sells electricity to the housing society at a pre-determined tariff.
    • Societies save on energy bills without bearing the installation cost.

This pay-as-you-go model is ideal for RWAs looking for zero-investment solutions for solar energy.

4. Crowdfunding and Member Contributions

In some cases, housing societies have successfully raised funds internally through member contributions or crowdfunding campaigns.

  • How to Execute:
    • Each member contributes an equal or proportional amount based on their usage or flat size.
    • Transparent communication ensures collective buy-in.

This method aligns financial commitment with sustainability goals, promoting ownership among residents.

Steps to Optimize Solar Financing for Housing Societies

1. Conduct a Feasibility Study

Evaluate energy consumption, rooftop space, and potential solar capacity before deciding on a financing model.

2. Leverage Multiple Funding Sources

Combine subsidies, loans, and internal contributions to minimize out-of-pocket expenses.

3. Partner with Experienced Installers

Work with reputed solar installation companies to secure long-term maintenance and financing support.

4. Opt for Net Metering

Net metering allows housing societies to earn credits for surplus electricity exported to the grid, further improving ROI.


Advantages of Solar Financing for Housing Societies

  • Affordability: Reduces upfront costs and spreads payments over time.
  • Increased Savings: Minimizes monthly electricity bills and operational expenses.
  • Environmental Benefits: Promotes clean energy adoption, reducing the community’s carbon footprint.
  • Community Development: Enhances property value and sustainability credentials.


Solar financing for housing societies is the key to unlocking the benefits of renewable energy. With subsidies, loans, and innovative models like RESCO, housing societies can overcome financial barriers and implement rooftop solar projects effectively. Read more about solar installation in housing societies to clarify further doubts.

By taking advantage of available financial solutions, RWAs can pave the way for a cleaner, greener future while achieving substantial cost savings. Explore your solar financing options today and make your housing society a model of sustainability. Get in touch with ZunRoof if you want to get a solar rooftop for your housing society. Stay tuned to our blog for more informative content.