We recently completed our 2017 Australian Consumer Solar Survey and it has produced some shocking, yet debatable insights about how Australians select their solar providers.
One third of the respondents don’t mind getting a solar system from their energy provider. That’s a huge percentage! Seemingly making them the majority.
So, what would make them willingly align themselves, contractually, with their current electricity provider?
Is it laziness?
Is it a lack of knowledge or understanding?
Not comparing the market or Convenience?
Maybe it’s all of the above.
We’re figuring it is mostly due to the irresistible offers of $0 down and 0% interest, for a limited period.
In the current financial climate with an average Australian pay rise sitting at 0.5%, while the average increase in electricity price is at 4.76%, that offer sounds like a NO BRAINER.
But, is $0 upfront the only factor to determine your solar investment over the next 20 years?
Alas, all that glitters is not Golden.
We subsequently discovered, from the same survey, that close to 40% of the respondents would NOT purchase a solar system from the energy providers. That’s an interesting discovery don’t you think.
The following breakdown of that 40% gives us some good insight into exactly why they will not purchase a solar system from their energy providers:
- 40.06% – I’d rather support local installers or small business
- 20.38% – I wouldn’t trust them
- 9.79% – They don’t have expertise in this area
- 4.04% – I don’t like them
- 25.73% – Other
Read the fine print
You might be surprised to learn that most of the offers by the energy retailers may be the real and hidden factor behind. They aren’t as much of a NO BRAINER as they seem.
Most of these offers are straight up credit cards, from major banks. The “loan” is not necessarily for the exact amount, but a rounded-up line of credit. So, a consumer could easily be tempted to spend the balance of the credit during this payback period.
The interest rate after 5-year period of 0% interest is applied at the cash advance rate, which is currently sitting at 25.99%. Oh, and there is also an annual fee charged, which can range from $59 to $119. Each vendor will have their own sets of lending criteria, terms and conditions, fees and charges that will apply.
Additionally, these offers will come with fewer system options for selecting your panels, an inverter and possibly a battery.
Again, these terms are from just one vendor, your electricity provider. With nothing to compare it to, $0 down and $0 interest might seem like a great option, even if it is from a known entity with a not-so-great trust score.
These are all problems which can be easily solved – compare the market.
Get multiple quotes from multiple vendors, who offer a variety of top tier products, with acceptable warranties, at competitive prices and financing options.
You might even find that, after including the current government rebate of up to [maxrebates]*, you might not need to finance.
Reality Check
Solar Power, once the single biggest threat to energy providers, has slowly infiltrated the energy sector in every Australian state and territory over the last decade. And now, having gone through the five stages of grief, from denial all the way to acceptance, most energy providers have finally acknowledged that solar is the future of energy.
Going solar is now considered, by its greatest rival no less, to be one of the wisest decisions.
So, to get the best deal, be sure to compare the market, consider all options and take your time to avoid being stuck with a provider that doesn’t match up to your household’s individual needs.
Let us help you make that decision by getting 3 Free Quotes from local suppliers.
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