The best solar finance is 1.99% from CBA
If you are looking to finance the purchase of a new solar system you have to check out the CBA 1.99% 10 Year Fixed Finance! It is hands down the easiest and smartest way to finance solar in 2023. The biggest catch is you need to be a CBA Home Loan Customer to access it. However, there are many benefits with the loan such as: the purchase of Solar Panels, Solar Battery, EV Chargers, Heat Pumps and Solar Hot Water Systems. The benefit when using the CommBank Green Loan is that you also get to select from a range of trusted New Energy Tech Approved Sellers! Tru Blu Solar Co is proudly a signatory to the NETC Code and is an approved New Energy Tech Approved Seller.
The solar finance Provider Options
Solar Finance Provider | Interest Rate (%) | Term (Years) | Finance Limits ($) | Commonwealth Bank – CommBank Green Loan | 1.99 fixed | 10 | 5,000 – 20,000 |
|---|---|---|---|
Parker Lane – GREEN LOANS | 3.99 – 4.99 variable | 1 – 10 | Priced on assessment |
NAB – Personal Loan For Energy Efficient Purposes | 6.99 – 19.99 fixed | 1 – 7 | 0 – 55,000 |
Brighte 0% Interest Loan | 0 but you’ll pay about 15-20% over the normal price | 0.5 – 5 | 0 – 45,000 |
Solar Finance options explained
Other than the CommBank Green Loan you could opt for the Parker Lane – Green Loan or probably the Brighte 0% Interest Loan. Parker Lane is a variable rate so some investigation with the lender about its limits of variation would be necessary. Brighte’s 0% Interest Loan is a pretty good option but it is a little misleading. If Tru Blu Solar Co were to sell someone paying cash a 6.64kW system we would sell it to them for around $5,700 inc GST. However, if we were to sell that same system to the same person using Brighte 0% Interest Loan we would sell it to them for around $6,800 inc GST. Why? Because Brighte’s finance attracts an upfront fee of around 15-20% of the total cost of the installation. There are many other ‘0% Interest’ Loans in the market place and they all attract similar fees. The other option you have is to lodge an application with NAB and see if you can get onto the bottom end of their fixed rate at 6.99% on the Personal Loan For Energy Efficient Purposes. If you want the cheapest solar finance, we suggest the CommBank Green Loan. Which is hands down the easiest and smartest way to finance solar in 2023!
Solar and Battery Finance Investment Analysis
The below table has been created on the 11th of May 2023 and shows some key information relating to the cash flows of a solar investment. The table shows the costs of various solar and battery systems. The average savings are noted and compared with the repayments of the CommBank Green Loan. The CommBank Green Loan is easy to sign up and you don’t pay anything up front. There’s also no associated monthly fees. That’s what makes it the smartest solar finance. After the installation we provide you with an invoice and the CBA will provide the funds for payment within a couple of weeks.
After the solar panels are installed, you immediately reduce the cost of your electricity bill. Of course, there are repayments on the solar finance. However, the repayments on the best solar finance are much smaller than the savings you make from paying less on your electricity bill. In many cases you will actually be in credit on the electricity bill and will be able to withdraw those credits directly into your bank account.
Any other solar finance options?
There are a few other ways that you can buy or finance the solar installation in your home or business. Here at Tru Blu Solar Co we don’t recommend using any of the below methods, with one exception, paying cash. For the sake of this blog post and the readers interest we will cover the alternatives solar finance options.
1. Paying Cash
Paying cash is easily the best way to purchase your home energy efficiency products. Unless you can access the CommBank Green Loan. Paying cash means you will see the benefits in full directly after your installation. As stated in the above table for a 6.64kW system, you will knock about $400 a quarter off your electricity bill. The cost of the 6.64kW solar panel system is only about $5,700. Saving $1,600 per year that is a 3.56 year payback period. Not a bad investment for a system that has panels guaranteed to last for 25 years! You may need some maintenance on the inverter after 15 years or so and replacing one of these is only about $1,600. If you have enough cash, but still have access to the CBA finance. We recommend taking advantage of it. Clearly it is the easiest and smartest way to finance solar in 2023. Furthermore, it is nearly free money! Why wouldn’t you want to take up that offer?
2. Power Purchase Agreement - PPA
A power purchase agreement (PPA) is generally well suited to commercial installations. Businesses that have capital tied up elsewhere and don’t have any decent access to a finance provider can seriously consider a PPA. A PPA consists of the solar panel system, the installer and the normal energy retailer. The solar electricity produced by the solar panels will be sold to the business owner, the business owner pays the solar installer for that energy consumption. The business owner will stay connected to the electricity grid and pay for the night time usage with their normal energy retailer. The idea is to supply the business owner with a renewable energy source at a cheaper rate than what the energy retailer can provide out of the grid for the day time component. There are other ways that a PPA can be set up. A PPA can be used within the National Electricity Market. The solar installer will install an industrial sized solar panel system and sell electricity in the wholesale market at the spot prices that are demand sensitive. Another form of a PPA can be in an off grid scenario where the solar installer will build an entire solar power system with panels, batteries and back-up diesel generators with all sorts of fun electrical wiring! This type of set-up is particularly good for people that are in remote towns and do not have access to the grid supply of electricity.
3. Solar Lease
A solar lease is much the same as a green loan or a ‘0% interest loan’. You basically get the solar installer to come out and design and install a system that will offset the cost of your electricity greater than the cost of the repayment of the solar panel system. This type of purchase structure generally attracts some hefty interest which is built into the monthly lease repayments. Most of these structures you purchase the solar system for a small buyout figure of $1 or so so that you own the system say after 10 years of repayments. If you consider the total amount of spend for a solar lease finance setup you will definitely be paying more than what you would if you paid cash. Hopefully you are in the position to utilise the easiest and smartest way to buy solar in 2023 – the CommBank Green Loan.
If you are ready to make an enquiry and see how solar would fit with your particular situation just drop your details into the form below and we will be in touch with you as soon as possible. Thanks for reading.