Households across Australia are facing rising energy costs, and power bills are expected to rise yet again this year. Installing solar panels can protect you from rising power prices, plus they can supply your home with clean renewable energy for up to 25 years or more.
But let’s face it, despite the long-term benefits of installing a solar system, coming up with the cash isn’t always easy.
Solar Power Finance
First up, a disclaimer. This page does not offer any financial advice and is not tailored to any individual circumstances. You should seek independent financial advice before considering any of these options or signing a contract.
1. Borrowing Against Your Home
When looking at the various finance options available for solar power, borrowing against your house is typically going to have the lowest interest rate. Comparison rates tend to be advertised from around 3.5% to 5.5% in Sydney, and of course, there are a number of variables that will affect your repayments.
Refinancing or drawing money from your mortgage can involve additional fees, and so a number of our customers will often include solar power with other home improvements. This has proven to be a common way for our customers to finance their solar investment, and we suggest you talk with your bank and ensure you have all the right information before you ask for a final solar quote.
2. Credit Cards and Personal Loans
A number of our customers choose to pay for their solar system with a credit card. Some credit cards offer interest-free periods of up to 12 months or even longer, giving you the chance to pay off the solar system over a period of time without incurring any additional costs. Solaray accepts all major credit cards and there is a transaction fee for the balance of the system (not the 10% deposit).
The other option is to take out a personal loan from a lending institution such as a bank or credit union. A brief look at any comparison website will show you that interest rates vary considerably and are dependent on your personal situation such as your credit history etc.
3. RateSetter Solar Power Green Loan
A Green Loan can be an affordable way to pay for your solar power system and a lot of our customers find the rates are very competitive compared to credit cards and personal loans. Green loans are only available for approved products, and as a Clean Energy Council Accredited installer, all of our systems qualify.
Green Loans from RateSetter can be used to finance Solaray systems from $2,000 to $45,000 over a 3-7 year term. Once you have placed an order, online approval normally takes 1 business day and your Solaray representative can help you with the application. Interest rates currently start at 7% and will vary depending on your situation. To qualify for a Green Loan you must make sure:
– You are over 21 years of age
– You are an Australian citizen or permanent resident, or a New Zealand citizen
– You have a regular source of income – Full time, Part-time, Casual, Contracting/Self-employed/Sole Trader, Self-funded retiree, Defence pensions (if meeting minimum income)
– You have a good credit history
– Further terms and conditions apply*
4. Interest-Free Payment Plan
Importantly, interest-free does not mean free, there are always costs involved with financing. With interest free payment plans there is typically a large establishment fee of around 10% included in the system’s purchase price, plus a weekly or monthly fee to keep the account open.
Often you will find that a company that offers interest free payment plans will offer a ‘discount for cash’, which in many cases will be the actual purchase price without the establishment fee of the interest free payment plan.
Interest-free payment plans have become a popular way to pay for consumer goods such as jewellery, electronics, and solar power systems. Interest-free payment plans are convenient, however, they are also very expensive compared to other finance options. It’s a way to pay for a solar system over time without having to deal with the hassles of banks, credit checks and long application forms.
The main payment options available to Solaray customers are:
– Cash / EFT
– Borrowing against your home or redrawing off your mortgage
– Credit cards & personal loans
– Green loan
You Can Now Get Solar With No Down Payments
Request a Solaray Quote today and tell your Solaray representative that you are considering finance, we would be happy to help with more detailed information.
*Finance is provided by RateSetter. All applications for credit are subject to RateSetter’s credit approval criteria. RateSetter Australia RE Limited (ABN 571 466 35) holds Australian financial services licence number 449176 and Australian credit licence number 449176. Terms and conditions apply. Please contact the Solaray Team today for more information.