Solar power systems will save any home in New Zealand considerable amounts of money over time. Financing can help with the cost of installation and the system itself. There are several ways you can finance a solar power system; topping up a home mortgage, a personal loan and Kiwibank's Sustainable Energy Loan.
Typically, interest rates on your home's mortgage will be the cheapest financing option and make the most sense. For example, if you are estimated to receive a 12% return on investment from a solar power system, and your mortgage is only 5% p.a., (so long as you can redraw from a home mortgage), you would still receive a 7% ROI from installing solar panels.
Those offering this type of finance include Q Card, Gem Visa, Q Mastercard and Finance Now.
Companies like Q Card often have deals where you don't have to pay interest on your first year, but from the second year onwards interest creeps up to around 26%
Buyers should exercise caution; interest-free doesn't always translate to 'œfree". Often in the first year of these 'interest-free'
Personal loans will work for many people as long as the loan is paid off within the interest-free time period. However, if left longer the benefit of cheaper electricity bills from installing solar power will be outweighed by the cost of interest incurred on the loan.