Is there any RIBA in solar power electricity transaction?

Answered according to Hanafi Fiqh by Tafseer Raheemi

Asalaamu Alykum Moulana

This is ——— from ———, I took my Biayah with you. I’m just writing to inform you of my progress Alhumdulillah.

I have been reading Subhanallah, Alhumdulillah, Allahuakbar after each Salaah. I usually (but not always) read Surah Assajdah and Surah Al Mulk after Isha and i also have been reading 1 Juz a day (not everyday but most days). I have read Yaseen afew times after Fujr, I read tasbeeh of 3rd Kalimah also.

After I took Biayah i got very ill for a while but Alhumdulillah i have recovered now.

I have a question about Riba.

I am working as a Gas Engineer Alhumdulillah and I was thinking about also starting to do solar panels but the way it works sounds like Riba but I’m not sure.

i’l explain how it works the best i can Inshallah. Right now a house is connected the and electrical circuit going to the power station and when you use electricity you are buying it from your energy supplier. If you add a solar panel to your electrical circuit you will be using your energy suppliers
electricity and the electricity generated from your solar panel. But if you are not using the electricity your solar panel generates at the time then you are selling your electricity back to your supplier because the electricity cannot be stored anywhere. when you sell your electricity back to your energy supplier it is at a cheaper rate than what you buy your electricity for.

I look forward to hearing your reply Inshallah

Asalaamu Alykum


Walaikumussalam w w

May Allah give lots of barakh in your time and in your ma’moolat. May Allah make them your natural habits which you can’t do without. May Allah give you the lazzat in your wazeefas and may Allah accept your efforts to earn His pleasure and may Allah be pleased with you. Ameen Be more punctual of the wazeefas in RAMADHAN.

In the scenario you described above, there is no Riba in the transaction. There are two different prices, one is for selling the electricity and the other for buying it.

This is allowed when the prices are fixed from the beginning and the transaction is clear ie there is nothing left for suspicion or doubt. It’s upto you to agree or disagree.

RIBA is where money is involved on both sides in the form of loan and one is giving less yet taking more in return for that small amount. Wassalam

This answer was collected from the official website of Sheikh Abdul Raheem Limbada (Hafizahullah) of UK.

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