Financing solar energy and battery storage
Households across Australia are facing rising energy costs while solar energy has never been more affordable. By installing solar panels, you can cut or even lower your electricity bills and provide your home with clean renewable energy for decades.
However, as the average system size continues to grow and more than half of the installations now contain battery storage, many people are now choosing to finance part or all of the system. Larger systems cost more money, but can also save many thousands of dollars year after year, making them an attractive and safe investment.
Given the current low level of interest rates, it is common for monthly loan repayments to be less than the benefits of the system, often substantial, especially if you spread the payments over several years.
Let's take a look at the five most important ways to finance a solar system with or without battery storage:
First, a disclaimer. We are a solar installer, not a bank or a financial institution. This page does not provide financial advice and is not tailored to your individual circumstances. You should seek advice from an independent financial advisor before considering any of these options or signing a contract. We advise you in relation to the solar system and provide all the information necessary for the financial service provider you have chosen.
1. Borrow against your home
Typically, when you look at the various solar energy financing options, borrowing money on your home will have the lowest interest rate. Comparison rates are at record lows in Sydney and, as people say, appear to remain low for at least the next few years. Of course, there are a number of variables that will affect your ability to withdraw money from your home loan. However, we have found that customers with a redraw feature have little or no problem funding a solar system this way, as long as everything else is fine.
Refinancing or getting money out of your mortgage may come with additional fees, but they are often much less than other options – including low-interest green loans. This has proven to be a common method for our customers to finance their solar investments. We encourage you to speak to your bank to make sure you have the correct information.
2. Secured funding from one of the Big 4
One of the best examples on the market right now is the CommBank Green Loan.
CommBank customers with an Eligible CommBank Home Loan or Investment Home Loan can use the CommBank Green Loan to purchase a Solaray solar system and battery storage on the property backed by their existing home loan.
The CommBank Green Loan is an extremely low-cost, secured, fixed-rate loan with no formation fee, monthly loan service fee, or early repayment fee.
3. Green credits
Green loans can be a low cost payment method for your solar system and are only available for approved products. As an installer accredited by the Clean Energy Council, all of our systems are qualified.
Green loans can finance Solaray systems from $ 1,000 to $ 30,000 over a period of 2 to 7 years. Once you've received a recommendation from Solaray, online approval typically takes 1-2 business days. The competitive fixed interest rate for green loans is only 5.89% pa * | Comparison rate 6.76% pa ^ formation fee of 299 USD added to the loan amount. $ 1.50 per week maintenance fee included in repayments.
To apply, you must:
- Be over 18 and a resident or citizen of Australia
- Own or buy a home
- Be employed, self-employed, a self-financed pensioner; or receives the state old-age pension
- Have an Australian driver's license or passport
- Include two recent pay slips or 90 day bank statements
There are a number of good, competitive green loan providers – ask us about the options available.
4. Credit cards and personal loans
Some of our customers choose to pay for part or all of the solar system with a credit card. Some credit cards offer interest-free periods of up to 12 months or even longer, giving you the option to pay off the solar system over a period of time at no additional cost. Solaray accepts all major credit cards and we pass on the transaction fee for using the card when we pay the balance of the system (not our first deposit). This information is available in your offer.
The other option is to get a personal loan from a financial institution such as a bank or credit union. A quick look at a comparison website shows you that the interest rates vary significantly and depend on your personal situation like your credit rating etc. Typically, a full doc loan will require a higher credit rating, but in return you will get a lower interest rate rating.
5. Interest-free payment plan
What is important is that interest-free does not mean far from being free. There are always costs associated with financing, and larger systems usually make these fees too high to be worthwhile. Interest-free payment plans typically include a fee of up to 25% in the purchase price of the system (paid by the supplier) and a weekly or monthly fee (paid by the customer) to keep the account open.
Often times, you will find that a company that offers interest-free payment plans offers a “cash discount,” which in many cases is the actual purchase price, excluding the interest-free plan setup fee.
Interest-free payment plans have become a popular payment method for consumer products like jewelry, electronics, and cheaper solar power systems. Interest-free payment plans are practical, but also very expensive compared to other financing options. It's a way to pay for a solar system over time without dealing with the problems of banks, credit checks, and lengthy application forms.
6. The good old way
You can pay for a Solaray system by bank transfer, free of charge. You can find our bank details in the offer.
Get a Solaray Quote today
Get a Solaray quote today and let your Solaray representative know that you are considering financing. We will be happy to help you with more detailed information.