Snymans Solar Series Part 3: Financing Your Solar Home

Financing Solar Energy Systems for Residential Properties in South Africa

With the growing demand for sustainable and cost-effective energy solutions, many South African homeowners are turning to solar energy systems. In response, the major banks in the country have introduced various financing options to make residential solar energy systems installations more affordable and accessible. This article explores some of the available financing options and how to choose one.

How to Choose the Best Solar Financing Option

Before choosing a solar financing solution, homeowners should consider the following:

1. Evaluate Energy Needs: Assess household electricity consumption to determine the appropriate solar system size required.

2. Compare Quotes: Obtain multiple quotations from accredited solar providers.

3. Understand Financing Terms: Carefully review the applicable interest rate(s), loan duration, and any additional costs.

4. Check Eligibility: Confirm the qualification criteria for financing with your preferred bank.

5. Explore Insurance Options: Protect your investment by ensuring your solar energy system is insured against theft and other potential damages.

Bank Financing Options

Standard Bank's Solar Loan

Standard Bank has developed a specialised Energy Loan to assist homeowners in funding their solar power systems:

• Loan Amount: Up to R300,000.

• Interest Rate: Personalised rates.

• Repayment Term: 12 to 72 months.

• Eligibility: Open to all qualifying individuals, including non-standard bank clients.

• Application Process: Submit a quote from a trusted solar provider and apply online or at your nearest branch.

More information can be found here: https://www.standardbank.co.za/southafrica/personal/products-and-services/borrow-for-your-needs/personal-loans/our-loans/energy-loan

Nedbank’s Renewable Energy Financing

Nedbank provides multiple financing solutions to assist homeowners in funding their solar systems:

1. MFC Asset Finance: A standalone loan not linked to a home loan.  

• Loan Amount: Up to R50,000.

• Interest Rate: Personalised rates.

• Repayment Term: Up to 96 months.

• Eligibility: Open to all qualifying individuals, including non-Nedbank bank clients.

• Application Process: Online

2. Home Loan Add-On: Allows customers to integrate solar financing into their home loans.

• Homeowners can apply at the time of purchasing a new home or access existing funds through NedRevolve (access bond facility).

• Options also include a readvance or further loan application.

Nedbank also offers insurance options to protect solar installations from theft, fire, and other damages. More information can be found here:  

https://personal.nedbank.co.za/borrow/solar-finance.html

Absa Bank & FNB Solar Energy Solutions and Financing

Absa Bank and First National Bank (FNB) also offer financing options aimed at assisting homeowners with funding their solar power systems:

The specific loan amounts, interest rates and terms vary; we encourage customers to contact them directly for tailored financial solutions.

Information on their latest offerings can be found by visiting their official website or speaking to a branch representative.

Financing a solar energy system is now more accessible and affordable than ever.

Homeowners can leverage the various finance options provided by the different South African major banks and switch to solar energy in a way that is both financially manageable and sustainable, while unlocking lower electricity costs, increasing their property value and ensuring a reliable power supply.

Written by: Maret Carroll
Moderated and approved by: Rohula Kgabu

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