In Short : By supporting solar financing, banks contribute to the country’s renewable energy goals, reduce carbon emissions, and create a more sustainable future. It’s an exciting development that highlights the commitment of South African banks to promote clean energy transitions and support customers in adopting solar power.
In Detail : As more South Africans seek affordable, reliable solar power solutions to cope with Eskom’s continued load shedding, the big banks have stepped in to help.
TechCentral spoke to Nedbank, First National Bank, Standard Bank and Discovery Bank about the solar financing solutions they offer to homeowners.
Nedbank
Nedbank launched its first set of financing packages on its Avo Solar website, aiming to make a greener energy supply accessible by offering solar and backup batteries at competitive prices. All the Avo Solar packages include installation by Nedbank-approved solar suppliers and installers and come with a 10-year warranty and certificate of compliance.
“South Africans have learnt that the only way to live and do business is to build resilience into their energy mix by harnessing the free power of the sun. To safeguard against unreliable electricity supply and increasing electricity prices, solar and backup power options have never made more sense,” said Nedbank Group managing executive of retail banking Ciko Thomas.
The bank allows up to 84 months to pay. “We offer a range of payment options, from cash to secure finance”, he said.
It’s estimated that an average household can save R26 000/year living off the grid.
FNB
First National Bank has introduced a range of new credit options for its clients to install solar energy solutions, with homeowners able to borrow up to 15% of the value of their homes.
The bank has introduced a new “Nav Energy” feature in its smartphone app to help clients with information and a selection of pre-vetted alternative solutions.
“Customers can now apply for a solar energy loan financed through a new or existing home loan. This allows customers to apply for a loan starting at R50 000 and going up to 15% of their home’s value to finance the installation of a solar energy system from a pre-screened list of reputable renewable energy providers,” FNB said.
The amount of the solar energy loan will be added to the customer’s bond and recorded as a single loan at interest rates that align with their credit profile.
“FNB will pay the deposit directly to the supplier upfront, so the customer will not be out of pocket unless there is a difference between the approved loan amount and the cost of the renewable energy solution selected by the customer, in which case the customer pays the difference or selects a more affordable solution.”
Those who do not want to install solar can also borrow money to buy UPS and inverter solutions, starting at R149/month over 24 months for a basic solution. Energy partners have been vetted by the bank to ensure no “fly-by-night operators”.
“While we have been supporting our individual customers with a range of solutions to build resilience against energy challenges, we believe that the personal solar loan benefit adds significant value as it allows us to extend more help to customers,” FNB Loans CEO MJ Davis said.
“To access the benefit, you will need to obtain a quote from a reputable supplier. You will need to apply for an FNB personal loan, and it is important that you ensure your loan amount does not exceed R300 000 and the loan amount is within 90% of the invoice received. You will be quoted on your personalised interest rate.
“After your personal loan has paid out, you will need to pay a deposit to your supplier. Once the deposit has been paid, you will need to log onto the FNB app to activate the benefit. The interest rate will only be lowered on your FNB personal loan once the benefit has been activated and all supporting documentation is received and verified. Activation may take up to 10 business days. The rate will also be effective from date of activation and not backdated,” said Davis.