Three ways to pay for business solar
Buy the plant with your own funds, borrow for it, or pay only for the units it produces under RESCO. Here is how the three compare, so you can choose the one that suits your cash flow and tax position.
| Buy with your own funds | Buy with a bank loan | RESCO: pay per unit | |
|---|---|---|---|
| Who owns the plant | Your business | Your business | The RESCO developer |
| What you pay upfront | The full project cost | Your share of the cost not covered by the loan | Set out in the RESCO agreement |
| What you pay afterwards | Maintenance only | Loan EMIs and maintenance | A per-unit rate for the solar power you use |
| Depreciation tax benefit | Yes, to your business | Yes, to your business | No: the developer owns the asset |
| Who looks after the plant | You, or an O&M contract | You, or an O&M contract | As agreed in the RESCO agreement |
| Suits a business that | Has cash to invest and pays income tax | Wants to own the plant but spread the cost | Wants to keep capital for its core business |
Buying with your own funds
Your business owns the plant and keeps all of the bill savings. If your business pays income tax, depreciation on the plant reduces your tax bill in the early years, which shortens the effective payback.
Under the Income-tax Act, 2025, which applies from 1 April 2026, section 33 allows depreciation on written-down value at the rates in Appendix I of the Income-tax Rules, 2026, where solar power generating systems are listed at 40%. If the plant is bought and put to use for less than 180 days in a tax year, that year's allowance is half the rate (section 33(4)). This was the position as of 23 Sep 2026; confirm what applies to your business with your tax adviser.
Our guide to accelerated depreciation on solar explains how the allowance works, and the ROI calculator includes it in the payback, IRR and 25-year cash flow.
Buying with a bank loan
Financing options are available for eligible C&I projects. We offer bank-loan support, including collateral-free loan support where eligible. All loans are subject to lender approval; the rate, tenure and margin are set by the lender for your business.
Documents lenders usually ask for
- KYC documents for the business and its owners or directors
- Recent financial statements and income-tax returns
- Bank statements for the business account
- Recent electricity bills for the site
- Proof of ownership or the right to use the roof, and the project proposal
Each lender sets its own list. Use the EMI calculator to see what a loan would cost each month.
If a loan isn't possible
If a loan is hard to arrange, there are still ways forward: paying with your own funds, installing in phases, or starting with a smaller plant that can be expanded later.
RESCO: paying per unit
Under a RESCO (renewable energy service company) arrangement, a developer funds, installs and owns the plant on your roof, and your business pays for the solar units it uses at a per-unit rate agreed in the contract. Nothing about the plant goes on your balance sheet as an asset, and the depreciation benefit stays with the developer.
RESCO is offered where it is commercially suitable for the site. Read how RESCO works for business owners.
Which route suits you?
Our free assessment includes a funding direction: whether buying outright, a loan or RESCO suits your business. Get a business proposal, or book a free power audit.