How To Finance Your Solar Investment & Start Reducing Your Bills!
Posted: 24 Sep 2019
A solar system is a beneficial investment which can relieve households from overpriced electricity bills and provide future savings for over 20 years. However, the upfront cost of purchasing a solar system can be a deterrent, no matter how much financial sense it makes to install or despite the Government Rebates available.
Dependent on the size system you opt to install could have you looking at prices ranging from $2,000 – $12,000 for sizes in the parameter of 1.5kW – 10kW. The typical Australian household will see greater benefits from installing a 5kW system or more, as opposed to opting for a smaller, less expensive system due to the amount of energy that can be produced with a larger system, which in turn reduces your energy bills greater.
So, with that in mind a 5kW – 10kW system would put you in the pricing bracket of $4,000 – $12,000, which for most of us requires dipping into our hard-earned savings or saving up over a long period of time, when we could have already started reducing our electricity bills.
Fortunately, these days there are financing options available which can assist you with the upfront costs of installing a solar system now, so you can start reducing your electricity bills sooner!
When considering finance for a solar system your safest and the most cost-efficient choice is a Government-backed Green Loan which is specifically designed for those wanting to invest in green projects. A well-known and reputable name amongst the market is RateSetter who provide low-interest loans, specifically for green projects or energy efficient products. Supported by the Clean Energy Finance Corporation, RateSetter’s Green Loan offers low-interest rates from 6.9% p.a.
A Green Loan’s low-interest rate means the savings you have accumulated from using your solar system could cover your loan repayments!
- Rates as low as 6.9% p.a.
- Borrow from $2,001 – $45,000 for green projects; including solar systems and battery
- From 3 – 7 years with no exit fees or early repayments penalties
- Fast online application in as little as 5 minutes
- Be rewarded for having great credit
Many of our installers are accredited to provide finance through Green Loans and can assist you with your finance applications.
Some of the State Governments in Australia provide financial assistance as well as additional rebates for energy efficient purchases such as solar and/or battery storage for solar, usually in the form of interest-free or low interest loans. To find out what is available in your State, check out our Government Incentives page HERE.
Power Purchase Agreement (PPA)
A Power Purchase Agreement (PPA) is a financial arrangement where a solar installation company will install a solar PV system at your property for free, and then sell you (the occupier) back the power generated at a lower price than you would pay from an energy retailer.
Whilst this is becoming somewhat popular in the commercial solar industry it is still yet to take off in the residential solar market.
Add To Your Home Mortgage
Another option homeowners can opt for is borrowing more money against their mortgage to put towards investing in a solar system. Whilst this isn’t a terrible option, if you’re only paying the minimum repayments towards your mortgage and the interest rate is high, then you could end up paying more for your system in the long run.
Be Wary Of Advertising For INTEREST FREE Loans
It’s common to see INTEREST FREE loans advertised for solar systems and panels these days, however it’s important to be cautious of additional costs where the provider of the loan will make up on their loss of interest fees.
Many systems under an interest free loan will have a price tag increase of 15% to 25% despite being the same system advertised cheaper elsewhere. So while you might not being paying interest fees, you’ll be paying the same or more in the long run if you were to choose an interest free loan over a more transparent Green Loan.
Get started on your solar investment today and request 3 obligation free quotes!
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