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SolarQuotes founder Finn Peacock joined Sonya Feldhoff on ABC Radio Adelaide’s Afternoons program yesterday to discuss green loans for solar power systems.

Now is a particularly good time to install solar power for a number of reasons, among them Australia’s solar rebate being even more attractive given high STC values. But not everyone may be comfortable in dipping into their cash buffer.

There is a way to buy solar without spending a significant chunk of change up-front – by using a low-rate green loan from a regulated finance provider that understands the monthly savings solar panels can provide and offers repayments that make installing a system cashflow positive from the get-go.

In his discussion with Sonya, Finn used a South Australian example.

“A typical quarterly electricity bill in South Australia is $500 a quarter. The most popular solar system size in South Australia is 6.6 kilowatts. They start at around, for a good one, $5,000. Now, a 6.6kW solar system for someone in South Australia with a $500 bill before solar, it will take their bill to on average throughout the year of about a $35 credit. So that’s saving you about $535 a quarter. If you were to get one of these low-rate green loans, you could buy that solar system without any cash down, without touching any savings, for about $214 per quarter. So, you’re saving $535 every quarter and it’s only costing you $214 per quarter to buy the system.”

It’s pointed out that the numbers are averages – over winter, the savings will decrease and during the warmer months increase.

“You will be cash flow positive immediately,” says Finn. ” It will be a smaller amount over winter, but it will make up for it over autumn, spring and summer.”

Traps For The Unwary

A few things can throw a spanner in the works; such as paying too much for a system, getting a bad finance deal or buying a crap system and it stops working a couple of years.

“But if you can find a well-priced, good quality system, and a low rate green loan – which generally takes into account you’re buying something that will save you money and so they can do you a good deal there – then it’s very, very compelling.”

You can listen to the full ABC Radio Adelaide Afternoons segment here, (starts just after 1 hr, 4 minute mark and runs for approximately 16 minutes). The segment includes Finn answering questions from the ABC audience – it’s well worth the time to have a listen.

For more information on finance options, check out SQ’s guide to financing a solar power system. You can also see what a system can save you over the various seasons by using the SQ solar calculator.