It’s no secret that load-shedding is only going to increase. Projections show that load-shedding will double in the next 5 years. These shocking projections have moved you to finally get a quote, but to quote the great Warren Buffet: “It was a bit more than you could afford.”
So, with the option of sitting in the dark every night for a very long time you, like most other South Africans, are left with the option to start looking at solar finance options.
There lies the problem. Not necessarily that it is unreasonable, but rather that the word “finance” has such vague connotations that most of the time most people don’t know where to start.
Below are some pointers on solar finance options in South Africa.
Asset-backed Solar Finance Options
If you’ve ever bought a car and had to finance the purchase (like most people) then it is as simple as going to your bank and going through roughly the same process as with your car. Most commercial banks such as FNB, Nedbank, Standard Bank & ABSA have got solar finance options.
This option would not be the cheapest nor the most expensive solar finance option. It would however be the fastest to receive and with banks seeing the great PR opportunity, this will become their flagship offer.
Excluding the major commercial banks, non-bank lenders or financial service providers (FSPs) also offer solar finance options.
There are hardly any people left who do not finance their cars through the bank. In time to come, it is believed that very few people will purchase their solar installations in cash.
Home Loan Extensions as a Solar Finance Option
This is an option that is attractive for multiple reasons. This includes the lowest interest rates, and almost all major banks such as FNB and Standard Bank offer home loan extensions as a solar finance option.
A home loan extension would be the cheapest option in terms of interest and breathing room, but would most probably take the longest to get approved. On average this process takes around 6 months as you have to, amongst others, obtain an updated home valuation.
Personal Loan as a Solar Finance Option
This is probably the least desirable option as it will entail the highest interest rates and with it being unsecured, it’s simple but expensive. A couple of examples include Direct Axis, ABSA & Nedbank.
If you have an option, would you use it?
The reality is that there is always an option to get yourself out of the miseries of load-shedding. We have spoken extensively about the negative psychological effects that load-shedding has on your personal- & family life. Yes, it is true that some people bask in the glory of misfortune. The reality is that if you have the option to get yourself out of the misery of load-shedding, increase the value of your home and live a greener life, why would you not consider solar finance options?
To a man with one hammer, you might just keep on hitting the same nail. If you don’t know about the options available then you’ll just keep on returning to the same situation of sitting on your couch night after night, looking at the blank TV. You will miss the next Bok game, drink warm beer, and keep on feeling powerless.
Is it time to finally consider getting more than one hammer? Contact us today to get a professional quote, professional service, and cold beer at the next Springbok Rugby game.
