Update 1 July 2019: Below is an old article. While still containing a lot of relevant information, we recommend you read our newer article about the interest free loans here.
In addition to a $2,225 solar rebate for Victorian families that qualify, the Andrews Government are promising interest free solar loans to make switching to solar a no-brainer for homeowners. But timing is critical.
How do the interest free solar loans work?
Back in August 2018, the Andrews Government made an announcement, committing to subsidise the cost of solar for 650,000 Victorian homes that qualify by $2,225 should they win the election, making now the single most cost effective time to invest in solar in Australian history.
But, there’s a second huge incentive to sweeten the deal. They also pledged to interest free solar loans up to an additional $2,225. This means that the average home would now be able to access solar for zero dollars upfront, and huge discounts on their electricity bill – even after the cost of their solar repayments.
No brainer, right?
Early 2019 the Victorian Government confirmed that the interest free loans would become available on 1 July 2019.
Some Victorian solar suppliers decided they didn’t want to wait for the government and decided to provide interest free loan offers of their own. So if you’re comparing solar quotes right now, or thinking about it – why not ask if they offer interest free solar loans?
(Solar Power Co is a free service that provides you with market information and research so you can find the right solar system for your situation.
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The additional $2,225 interest free solar loan promised by the Andrews Government also comes with quite a few conditions:
- Loan is only up to $2,225
- Payback term is 4 years
- Only 650,000 homes are eligible
- You must have a taxable income that’s under $180,000
- You have to own and live in the property that the solar power system will be installed on
- Provide extensive documentation for approval
If you’re wanting to kick start your energy saving with solar power, that’s may be a lot of obstacles. Especially since many of the solar power providers registered with Solar Power Co already offer $0 interest payment plans for amounts up to $30,000.
You may consider an interest free loan through one of the Solar Power Co supplier network for some of the following benefits:
- Loans up to $30,000 ($27,775 more than what will be available by the Victorian Government)
- Flexible terms up to 5 years (1 year longer than what’s offered by the Victorian Government)
- No income restrictions (Proposed restrictions to homes with combined income of $180k+)
- Available to both homeowners and property investors
- Payments are covered by the savings generated by solar system installed (“Zero Cost Solar”)
(RELATED: Want to know out if you’re eligible for $2,225 Victorian solar power rebate? Check out our solar power rebate article that contains all the information you need. From the eligibility criteria to a quick step-by-step on how to claim the rebate.)
Comparing the Solar Loan options
|Loan||Interest Free Solar Loan|
|Loan is only up to $2,225||Loans up to $30,000|
|Payback term is 4 years|
Only 650,000 homes are eligible
|Flexible terms up to 5 years|
Currently unlimited to qualified homes
|You must have a taxable income that’s under $180,000||No restriction based on taxable income|
|You must be owner / occupier of the property that the solar power system will be installed on||Available to both homeowners and property investors|
|You must provide extensive documentation for approval||“Low documentation” solutions available|
Why you should finance your solar power
85% of Australians in the property market see solar as a significant reason to choose to purchase a home over another, with other sources quoting solar adding an average of 3.8% to the value of your home*. True or not, solar panels are one of the best investments you can make as the right system can dramatically reduce your household’s bills by as much as 80% or more.
Given the savings, many families choose to finance their system using the savings generated from the system to pay the instalments.
By financing your solar power system, you pay off your solar power system with the money you save on your energy bill, rather than being out of pocket several thousands of dollars right now.
This is because the savings from the right system is often enough to pay for itself, and at the end of the payment period you’ll have a solar system you own 100% and a heavily discounted electricity for many years to come.
Effectively, financing makes it possible to get solar power now and enjoy the benefits (particularly as the days become longer over summer) straight away, without having to pay anything. You’re trading in your energy bill for your solar power bill – but for a system that you’ll have paid off in just a few years, but will get the discount for many more.
Want to know more about “Zero Cost Solar”?
If you’re interested in “Zero Cost Solar” or financing a solar power system, request 4 quotes at www.solarpowerco.com.au or call our team on 1300 765 102. We here to help you the right solar power provider for you.
Solar Power Co aims to empower and educate consumers with the right knowledge about solar power and help them to find the best product to suit their individual needs. We assess and review all installers we recommend and only work with providers who meet high standards of experience, customer satisfaction and quality.