Solar Power & Battery Storage Finance
Households across Australia are facing rising energy costs, while solar power has never been so affordable. Installing solar panels can reduce or even eliminate your power bills, plus they can supply your home with clean renewable energy for decades.
But as the average system size continues to increase and more than half of installations now include battery storage, many people are now choosing to finance some, or all, of the system. Larger systems cost more money, but they can also save you many thousands of dollars year after year, making it an attractive and safe investment.
Thanks to the current low interest rates, it’s common for the monthly loan repayments to be less than the benefit of the system, often significantly, especially if you spread the payments out over a number of years.
Let’s have a look at the top 5 ways to finance a solar power system with or without battery storage:
First up, a disclaimer. We are a solar power installer, not a bank or financial institution. This page does not offer any financial advice and it is not tailored to your individual circumstances. You should seek independent financial advice before considering any of these options or signing a contract. We will offer advice on the solar system, and provide all the information needed for your chosen finance provider.
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 are at record lows in Sydney, and from what people are saying, appear to be staying low for at least the next few years. Of course, there are a number of variables that will affect your ability to redraw money from your home loan, however, we have found that customers with a redraw facility have little to no problem financing a solar power system this way as long as everything else is in order.
Refinancing or drawing money from your mortgage can involve additional fees, but even so these will often be much less than other options – including low interest green loans. This has proven to be a common way for our customers to finance their solar investment, and we suggest you talk with your bank to ensure that you have all the right information.
2. Secured Finance From One Of The Big 4
One of the best examples on the market at the moment is the CommBank Green Loan.
CommBank customers with an eligible CommBank home loan or investment home loan can use the CommBank Green Loan to buy a Solaray Solar Power System and Battery Storage at the property, secured by their existing home loan.
The CommBank Green Loan is an ultra-low, secured fixed-rate loan with no establishment fee, monthly loan service fee or early repayment fee.
3. Green Loans
Green Loans can be an affordable way to pay for your solar power system and is only available for approved products. As a Clean Energy Council Accredited installer, all our systems qualify.
Green Loans can be used to finance Solaray systems from $1,000 to $30,000 over a 2-7 year term. Once you have received a referral from Solaray, online approval usually occurs within 1-2 business days. Green Loans competitive fixed interest rate are as low as 5.89% p.a.* | Comparison rate 6.76% p.a.^ Establishment fee of $299 added to the loan amount. $1.50 per week account keeping fee included in repayments.
To be eligible to apply you must:
- Be over 18 years old and an Australian resident or citizen
- Own or be purchasing a home
- Be employed, self-employed, a self-funded retiree; or is receiving the Government Age Pension
- Have an Australian driver’s license or Passport
- Provide two most recent payslips or 90 days of bank statements
There are a number of good, competitive Green Loan providers – ask us about the options available.
4. Credit Cards and Personal Loans
A number of our customers choose to pay for part, or all, of 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 we pass on the transaction fee for using the card when paying for the balance of the system (not our initial deposit). This information is available to you on your quotation.
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. Typically a full-doc loan will require a higher credit score but in return you will get a lower interest rate.
5. Interest-Free Payment Plan
Importantly, interest-free does not mean free, far from it. There are always costs involved with financing and typically on larger systems these fees become too large for it to be worth it. With interest-free payment plans, there is typically a fee of up to 25% that is included in the system’s purchase price (paid by the supplier), plus a weekly or monthly fee (paid by the customer) 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 cheaper 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.
6. The Good ol’ fashioned way
You can pay for a Solaray system fee-free using a bank transfer. Our banking details are provided in the quotation.
Request A Solaray Quote Today
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.