Residential, retail and commercial finance is an increasingly popular option for many Australian homeowners and businesses looking to save money and go green.
Residential and retail finance works just like a regular loan from any bank or loan agency. Think of it just like a car loan. Solar customers are able to take out a solar loan in order to finance the upfront cost of the solar installation. Like most loans, it is simply paid off to that provider over a period of time with interest.
In addition to the traditional characteristics of a loan, solar finance often includes bundling options with energy efficiency improvements, maintenance and upgrades as incentives to use their financing services.
Residential Finance
As a homeowner, financing a solar power system through residential finance options is a popular way to avoid upfront financial outlays. Here are the different ways you can access residential finance for solar:
1. Add Solar to Your Home Loan
Many homeowners, particularly those with brand new homes, opt to bundle their solar loan with their mortgage in order to reduce interest and streamline their debt repayments. There are a number of incentives offered with mortgage bundles, the main one being some of the lowest interest rates on the solar finance market. Australian Solar Quotes recommends looking at all options before making the decision on a mortgage finance bundle, as every policy differs.
2. Payment Plan
The other way in which homeowners can access finance is through a more ‘traditional’ payment plan. This is simply a loan like any other, however often with lower interest rates. Many banks offer these loans and call them ‘green loans’ as well as there being a number of Government green loan schemes in place depending on your location and other factors.
Retail Finance
Solar is not just popular with Australian homeowners, more and more businesses around the country are taking advantage of retail finance and commercial solar finance options in order to benefit from the long list of perks solar brings. As a business, going green is both an attractive upfront money saver and a smart long term investment.
By combining federal, state and local incentives with a retail finance option, accessing solar has never been easier for Australian businesses. Retail finance in the form of loans is a less common way for businesses to access solar, with solar leases and power purchase agreements dominating the retail finance market. See our Solar Leasing page for more information!