Introducing A New Solar Panel Loan Program From Engensa
Author: Ian Wright
Published: Friday, 03 August 2012
The Eco Experts are pleased to announce a new partnership with Engensa – The UK's leading home energy company - to offer solar panel loans for the first time in our history. Solar panel prices are falling rapidly, yet in these tough economic times they still remain outside the budget of many homeowners. We hope this product can help.
What is a solar panel loan?
A solar panel loan is exactly what you'd expect; it's a loan to buy solar PV panels. However unlike other loans, this one pays for itself. Better yet, there is absolutely no upfront cost to you. You get to enjoy all the benefits of the government's Feed-In Tariff scheme without worrying about how you're going to pay for it.
Solar PV Panel Cost
The cost of Solar PV panels has plummeted in recent years, making them more affordable than ever. Just as an example, a standard 4kW system cost around £16,000 to install in 2010. In 2011, that same system would have cost £12,000 to install. However, today you can get a 4kW solar PV system installed from as little as £7,000 - a 53% fall in prices in just 2 years.
Yet, these days most of us still don't have a spare £7,000 lying around. This is where SolarLoan from Engensa comes in.
How does SolarLoan work?
SolarLoan lets you own your solar panel installation unlike other "Free Solar" or "Rent-A-Roof" schemes you may have seen advertised. You pay no deposit to get your panels installed and instead pay the loan back over 10 years. The panels are then yours free and clear. Many homeowners can fully cover their loans repayments from Feed-In Tariff (FiT) income (currently up to 16 p/kWh) and from energy savings.
You should be aware that loan payments remain fixed each month, but you will earn far more from the FiT in the sunnier summer months compared to the darker winter ones. Thus, you'll want to be sure you can cover your loan repayments when you're earning less.
The exact amount you will pay each month will depend on where you live and what size and type of system you get installed. The interest rate on all loans is a low 7.9% APR, and you always have the option to pay back the loan in less time if you wish – thus reducing the interest paid.
Is everyone eligible?
As with all loans there are certain restrictions: you must be 18 or over, have good credit and own your own home. Beyond that your house will have to meet a few basic requirements. Your roof can't be North facing and must have enough space for at least 5 unshaded panels. Larger systems offer economies of scale that smaller ones don't. A standard 4kW system could end up earning you £20,000 over the lifetime of the system.
What happens if I move house?
You are responsible for the loan, it is not fixed to the house or system itself. Therefore, if you move house you can either continue your monthly payments or much more likely, you add the future cash flows from the system to your selling price and use the sale revenue to pay off the loan. You have complete control over this process and remember you always have the option of paying the loan off early.
Sounds good, where do I sign up?
If you'd like to sign-up or have a question not answered here, please use the webform at the top of the page or give our Eco Experts a call at 0207 424 3132.