Whether you’re installing solar panels to primarily reduce your carbon footprint or to lower your electric bill, it’s important to remember that solar panel installation can be a hefty investment. It’s partly the reason why so many decide against it despite its known benefits.
However, thanks to the green movement options have been made available for homeowners to save money while installing solar panels. You can reduce the average cost of a solar system from $15,000 to somewhere below $10,000 or even lower thanks to these options.
On the average, most Australians pay $10,750 to install a 10kW solar system even more if solar batteries are included. It varies from city to city. For example, families looking for Bendigo solar services may pay $5,350 including GST and federal rebate for a 6kW solar panel system. Another family in Melbourne may pay higher fees.
Given that it takes roughly four years for solar panels to pay for themselves, it’s really best to explore different options to finance this investment. Here are five ways to finance your home’s solar panels without getting broke.
Green loans were first introduced in Australia back in 2018. It’s a type of credit offered to individuals and companies on the basis that the money borrowed will be used for something the financial institution considers to be environmentally-friendly.
And you can’t get more environmentally-friendly than with solar panel installations.
Banks are walking the talk with the Bendigo and Adelaide Bank installing solar panels in their Bendigo headquarters back in January 2022. They had a 200kW solar system installed to improve their bottom line.
Generally, green loans are considered the best option when you can’t pay for your solar panel installation out of pocket. Green loans do not only have a low interest rate but it also has options for long-term payment schemes. However, the downsides are that it’s only offered by limited financial institutions and has very strict eligibility criteria.
If you’re considering applying for green loans, check out these banks:
Studies have shown that solar panels increase the value of a home. A report by Zillow showed that homes with solar-based energy systems sold 20% faster and for 17% more money than non-solar homes.
While this may be true, including solar to your mortgage while buying a home may be the most risky out of all the five options in this list. It increases the value you’re going to borrow from the bank and if you’re slow to pay it off, then you might end up paying a lot more.
One of its only advantages is that it consolidates your debt, making it easier to focus on paying it off.
Consider this option after thorough research and financial advice.
Solar leasing is also known as “rent-a-roof” or “rent-to-own solar” schemes. With the cost of solar panels decreasing, it’s not as popular as it was before. This option is primarily more advantageous for larger commercial systems where savings will easily outweigh the costs of the system.
However, some solar installers in Bendigo still offer this scheme. Basically, in this agreement, you won’t pay any upfront costs for your solar system installation. Instead, the whole cost of the system is paid off by monthly payments and you won’t own the solar system until it’s fully paid off.
If you move houses, you’ll be required to pay an outstanding balance to legally end the arrangement.
Solar power purchase arrangements or solar PPA’s are agreements that allow a solar system installation company to install the system for free in exchange for your agreement to purchase solar power from said panels at a lower price compared to purchasing power off the grid.
While this sounds good – no upfront costs, no traditional repayments, free maintenance – a major con of this financial payment option is that you won’t be owning the solar panels.
Unlike green loans, personal loans are a lot more flexible. Personal loans are offered by almost all financial institutions and it won’t be requiring you to have sourced a solar system before it’s released. Given that all financial institutions offer personal loans, you can compare and contrast a lot more to find the best fit for you.
The disadvantages of personal loans are that its interest tends to be higher than green loans and it requires you to have cash in hand and a good credit score for approval.
Investing in a solar system takes a lot of consideration and funds. That’s why it’s best to be aware of all the possible financing options you may explore. The best way to finance this investment is based on your personal situation and financial standing – it differs from person to person.
The installation went well and Brooke’s team did an excellent job with complete professionalism. Every aspect of the work has been done neatly and looks superb. I will certainly recommend him to anyone who asks for my opinion. Excellent result.
Brooke was instrumental in covering large sections of rural Victoria and NSW and has developed a significant amount of knowledge in his time. I have complete faith in Brooke’s quality of work and work ethics, especially when it comes to customer service.
Prompt callout and availability was always punctual. His staff were courteous to deal with and polite. Day to day operations of our business continued without a hitch while the solar installation took place.