Financing Solar and Batteries: Start Saving Now, Not in a Few Years
Most households know a solar and battery system will save them money. The usual sticking point is the upfront cost, which means putting the decision off until the savings can be put aside. In the meantime, the power bills keep arriving.
Financing your solar battery is simply a way of reversing that order. Instead of saving up first and benefiting later, you install the system now for zero dollars down, and you start saving straight away.
Many of our customers use finance to either cover the entire system cost, or they opt to pay some cash and finance the remainder so they don’t have to compromise on their dream system size or product quality.
The idea in one sentence
If your monthly electricity savings are more than your monthly repayments, you’re immediately ahead from day one – and you also end up owning the system outright!
That’s the concept. In finance terms it is called being ‘cash flow positive’, but in practical terms it just means the system is paying for itself while you use it. For many of our customers this is exactly how it works out, particularly households with higher power bills and good daytime energy use. It will not be the case for everyone, which is why it pays to get good advice on the optimal solar battery system size for your home and expected savings.
What makes the difference
A few things determine whether the repayment sits under the savings:
• How much you currently spend on electricity
• How much power you use during daylight hours
• The size and type of system your home needs
• The interest rate and the length of the loan
The last one matters more than people expect. A shorter loan means you own the system sooner, but the repayments are higher. A longer loan keeps the monthly repayment lower and is more likely to sit under your savings. Neither option is automatically better. It depends on what suits your household and goals.
Generous rebates do some of the heavy lifting
Before you finance anything, several incentives reduce what a system costs in the first place, which means there is less to borrow:
• Federal solar incentive (solar STCs). Applied as a discount on your quote automatically. No paperwork on your end. Not means-tested.
• Cheaper Home Batteries Program (battery STCs). A federal discount of up to 30% off an eligible battery, also applied upfront. Not means-tested.
• Solar Victoria rebate and loan. Available to eligible owner-occupiers and deducted from your quote. It is means-tested on household income, and an optional interest-free loan is available alongside it.
Not everyone will qualify for all of these. The Victorian rebate has tightened its eligibility, though the federal incentives apply regardless of income. We can explain what your household is entitled to when you speak with us for a quote.
Your finance options
At Winki Energy we always want to give our customers choices. You can look at a single finance package, or if you prefer you can explore multiple lenders. We can connect you with a specialised finance company or broker to find a package that best suits your situation and goals.
Many lenders – potentially even your own bank – now offer discounted “green” loans for accredited solar and battery installations, and several banks offer better rates or top-ups on an existing home loan for energy upgrades. These are often sharper than a standard personal loan, and a lower rate makes it far easier for the repayment to sit under your savings.
Four reasons customers choose finance
You want lower bills now. Many customers install with nothing upfront, pay the system off over an agreed term of typically 3 – 7 years, and own it outright at the end.
You do not want to cut corners on the system. Going too small is the most common regret we see, and adding capacity later costs more than getting it right the first time. Finance covers the gap between what you can fund today and the system that actually suits your home.
You want to use the rebates while you are eligible. Rebates continue to drop every 6 months! Finance can bridge the gap now so a delay does not cost you any of the very generous solar and battery rebates currently available.
You have other plans for your cash. Not everyone who finances is short of funds. Some customers would simply rather keep their savings free for other priorities or investments, and finance lets them do that without putting the system off.
What happens when the loan ends
Typically you own the system outright, the repayments stop, and the savings keep going. Winki Energy supplies high quality solar panels and batteries that carry long product and performance warranties, and will keep producing power for many years after the loan term has finished.
A few important things to check
• Ask that the savings estimate is based on your actual power usage, not an average household
• Compare the repayment against that saving, and ask how it looks over different loan lengths
• Check the fees, and what it costs to pay the loan out early
• With any “interest-free” offer, ask for the cash price and compare, as the finance cost is often built into the system price
Not sure how finance works?
That is common, and it should not be the reason you delay or miss out on the current rebates. We are happy to explain how the options work in plain terms, and you can also choose to arrange your own finance (e.g. via your bank) instead. Either way, the starting point is a free assessment so you know what a system suits your home and what it will save you.
Don’t wait to start saving – use finance to immediately reduce your bills and dependence on your power company!
Book a free assessment with Winki Energy
Financial advice disclaimer: while Winki Energy can help design a suitable solar battery system and estimate your net savings after repayments, we cannot provide financial advice. Not all households will be eligible for finance and this article is to be used as a guide only.
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