If you want to transition to greener energy solutions, then you’ve no doubt looked into solar and will know that the technology can involve a significant upfront investment. For many people the cost of installing the technology can be prohibitive, luckily there is solar panel financing available for those who would like to install it and do their part for the environment. If you’d like to know more about the solar panel financing options available, then read on below.
What are the best options for solar panel financing?
There are many options available to help you with solar panel financing, the best option for you will depend on your needs and personal financial circumstances. Here are some of the loan options you may come across:
Green energy personal loans
A green energy personal loan is specifically designed to help assist you with the purchase of sustainable, energy-efficient products such as electric cars, energy-efficient electricity and green appliances. These particular personal loans can be provided on either a secured or unsecured basis and often come with loan terms that range between a few months to seven years, like most personal loans. This can be a great option for solar panel financing for those who can afford to make the payments and who have a good credit score. Many lenders offer good loan terms and will not penalize early repayments.
Certain speciality lenders will offer interest-free loans to help people access green home energy systems or to make energy-efficient home improvements. These loans tend to involve higher fees than other options, but they offer a pathway into having the panels installed if you can afford the increased repayments or have a little bit of debt or a poorer credit score.
Redrawing from home loan is a popular way to get solar panel financing. By using the redraw facility on your home loan you can access favourable interest rates and access the money you need to install new technology on your roof. It’s important to know that redrawing from your home loan can lengthen the amount of time it will take you to pay off your home loan so this option is better left to those who want to pay off their home as quickly as they can.
Some technology providers will lease their systems on a rent to buy basis. This is a good choice for people who do not want to pay for a system upfront and is great for those who would prefer to avoid being made responsible for the cost of maintaining their systems.
How much will they cost to install?
The cost to buy and install a new system depends on the size that you plan to buy, the kind go rebates available to you and the complexity of installing it on your property but most homeowners can generally expect to be up for around $6,000 in solar panel financing.
What rebates are there?
In Australia, there are a number of rebates available including home rebates which can save people a substantial amount on the cost of new system. The scheme credits owners for every megawatt hour of energy generated by their systems. There are also rebates for off-grid systems.
What’s right for me?
Deciding what loan or finance option is right for you should involve you weighing up costs, fees and loan terms. Find the option that works best for your lifestyle and budget and think about what kind of repayments you can afford and what will work for your situation.