Solar energy systems are the disruptive energy supply growing in popularity across Australia, where we now have over 3 million solar PV systems. In our last blog post we talked about Solar PPA and how it provides an option for businesses to implement a solar energy system without any capital investment.
With an increasing demand for clean and sustainable energy sources, solar loans have emerged as a viable solution for businesses seeking to go green sooner rather than later.
In this blog post, we’re going to explain what a solar loan (or green lending option) is, explore how they work, the benefits, and how you can embrace renewable energy and contribute to a greener future even if you don’t have the capital available to invest, right now.
So, let’s dive in and discover the world of solar loans, AKA green lending options.
What is a solar loan?
A solar loan is a type of financing that enables a business to install a solar energy system on their property by borrowing money from a lender.
The loan is specifically designed to cover the upfront costs associated with purchasing and installing solar panels, inverters, and other equipment necessary for generating electricity from the sun.
Solar loans typically have favorable terms like:
- Competitive interest rates and
- flexible repayment options
This makes them an attractive option for businesses looking to invest in renewable energy and reduce their carbon footprint. With a solar loan, you can access affordable financing to install a solar energy system to start generating your own clean energy while reducing, or completely ending your need for expensive grid-energy.
Solar loans are growing in popularity as Victorians recognise the environmental and financial advantages of going solar, and they are paving the way for a greener, more sustainable future.
How does a green lending solar loan work?
A solar loan works by providing borrowers with funds to cover the upfront costs of purchasing and installing a solar energy system on their property. This extends to businesses. The loan is typically repaid over time through regular installments, typically monthly or quarterly over several years.
Here’s a general overview of how a solar loan typically works:
- Loan Application: Borrowers can apply for a solar loan through a lender or a solar installer who offers financing options.
- Loan Approval: Once the loan application is approved, the borrower will receive the loan amount, which is typically based on the total cost of the solar energy system, including equipment, installation, and any associated fees.
- Solar Panel Installation: With the loan funds in hand, the borrower can proceed with the installation of the solar panels by a professional solar installer. The size and type of solar energy system will depend on the borrower’s energy needs, location, and other factors.
- Loan Repayment: After the solar panels are installed and operational, the borrower begins repaying the loan according to the agreed-upon terms.
- Energy Savings: As the solar panels generate electricity, the borrower may benefit from reduced or eliminated electricity bills, as the solar energy system offsets a portion or all of their electricity usage. These energy savings can help offset the cost of the loan payments, making solar ownership more affordable over time.
Who provides solar loans?
There are plenty of providers for solar loans across Victoria including the Big 4 banks and green lending providers like Brighte and Plenti Solar Loans.
You may also be eligible for a solar rebate through the State Government’s Solar Victoria program. There is information on that here.
Is a solar loan worth it?
A solar energy system limits your business’s reliance on grid energy, it’s carbon-free, renewable energy that will reduce your energy costs and enhance your PR. The best time to get solar is right now and if you don’t have the cashflow available to invest in a system just yet, opting for a solar loan is a great option to get the job done and start saving on energy costs sooner, rather than later.
If you’re interested in a solar power energy system for your business, check out our commercial solar page for more information or give us a call 1300 788 776.
What is a solar loan?
A solar loan is a type of financing that enables a business to install a solar energy system on their property by borrowing money from a lender. The loan is specifically designed to cover the upfront costs associated with purchasing and installing solar panels, inverters, and other equipment necessary for generating electricity from the sun.
How does a green lending solar loan work?
A solar loan works by providing borrowers with funds to cover the upfront costs of purchasing and installing a solar energy system on their property.
Who provides solar loans?
There are plenty of providers for solar loans across Victoria including the Big 4 banks and green lending providers like Brighte and Plenti Solar Loans.
Is a solar loan worth it?
Yes, a solar energy system limits your business's grid-energy reliance, it's carbon-free, renewable energy that will reduce your energy costs and enhance your PR
