All you need to know about solar financing

Australia is one of the sunniest places on earth – and we are making the most of it when it comes to harnessing all that sunshine. As of October 2023, a respectable one in three rooftops had solar panels installed, generating free, clean, and sustainable energy.  

That said, it’s important to understand solar financing. Installing a quality solar system in your home or business needs a substantial initial outlay. It pays to seek expert advice and do your research to determine the solar panel installation cost and how to finance it.

Are solar panels worth the cost?

The short answer is a resounding YES. Going solar remains a solid investment in Australia! On average, your solar system will pay for itself within 4 to 6 years and should deliver you energy savings for up to 25 years. That’s regardless of your energy consumption or which state you are in.

How much does a solar system cost?

There’s good and bad news here, but the positives definitely outweigh the negatives. The bad news is that the federal solar rebate has been decreasing each year, down 9% in 2021. The good news is though, that the cost of solar systems has reduced by a whopping 90% in the last 10 years. 

Costs: The cost to solar power your home or business very much depends on the system size and layout that is right for you. Other variables are also who you choose for your installation and the quality of the solar panels you decide on.

To give you an idea of the average solar costs, let’s look at the most common solar system used in Australia, the 6.6kW system with a 5kW inverter:

Typically, a good quality 6.6kW solar system will cost you between $6,000 and $8,500. Prices in the larger Australian cities are all within a narrow margin though, between $6,500 and $6,900, with Brisbane sitting at an average cost of $6,848.

Rebates: Making full use of available government incentives makes a real difference to the initial cost to solar power your home or business.

Your government incentive depends on the size and purpose of your solar system and your zip code. For example, that 6.6 kW system will be eligible for a $3,458 rebate in Brisbane (zip code 4000). Once you’ve discussed your requirements with our team and have settled on a system, you can find out the total rebate you are entitled to by entering your details in the solar calculator.

A word of caution

We can’t stress enough though, the importance of getting expert advice and choosing a quality product and professional, qualified service. It’s absolutely worth comparing the cost and efficiency of solar panels. If a solar deal sounds too good to be true, it very likely is. Offers like “$0 upfront” and “interest-free” are nothing more than sales tactics used to get potential customers biting.

If you think an offer may be a scam, here are a few things you can do to be sure:

• Ask for the cost of the system. Check whether the price quoted already has the upfront STC rebate or any other state-specific incentives deducted or not.·       

• Ask for details of the panel and inverter brands being installed then research the quality of these products and brands.

• Lastly, compare the outright system price with the price of a similar system from a reputable solar installer.

Solar financing – what are your options?

You’ve worked out your solar installation costs. Now it’s time to look at your options to fund a reliable and high-quality solar energy system:

• Ask the installation company if they are willing to do a payment plan where half is paid upfront and the remainder is paid monthly by an agreed-upon amount until the balance is cleared.

• Attach the finance to your home loan or redraw from your home loan. So rather than being hit with one big payment, you have the option to pay back the initial outlay over a number of years.

• It is worthwhile checking out the terms and conditions of third-party solar financing and weighing these up against buying solar panels outright. Make sure you understand additional costs such as interest and potentially loan application fees to your original purchase price.

• Note that there’s however an increasing number of so-called green loans available through banks and specialised lending institutions. Green loans form part of an effort by the Australian government to support its climate and environmental objectives. These sustainability-linked loans often offer very favorable terms and conditions to borrowers.

• You will find different loan options available depending on whether you are looking for a residential solar installation or a commercial one.

• A solar system is a good investment, so rather than over-stretch your finances, the better plan may be to save up and wait for the next tax refund to pay for the solar energy system you’ve chosen. Weigh this up against the savings you can enjoy on your power bill as soon as you have your PV solar panels installed and up and running.

Are you ready to chat?

Remember, the first step is to always do your research to find a great company that will install a high-quality system. Get in touch with our team if you would like to ask any questions or get an idea of the financing options we have available at Gardel Electrical.

Our team will accompany your solar journey all the way. We will:

• Discuss and explain solar system options and their respective advantages with you

• Design a system size and recommend a layout that suits your energy requirement

• We offer a range of payment options including credit card, bright finance, EFT and payment plans here at Gardel Electrical. Get in touch with us to discuss your options.

• Manage the entire installation from start to finish and provide all the required pre- and post-installation paperwork

• Answer any questions or queries you might have, and ensuring your system run leads a long and healthy life.