how to finance a solar power system in your home

Submitted by Zeke on Thu, 2010-01-14 10:28

When one looks at the initial cost of solar powering a home, many of us cringe at having to fork out to install the solar items that get us off grid either partially or completely.

A solar power system is an expensive home addition but it's an extremely beneficial one, particularly given ESKOM's price hike. If you don't have thousands of rands to pay for these solar power systems up front, there are other ways in which you can pay for your home to be eco friendly...

One of the most obvious ways would be to apply for a loan for your residential solar power system. The problem with a loan is that the payments can be exorbitant and you could pay off a solar power system for years to come. A more economical alternative is to increase the bond on your home to include your solar system.

Getting finance for your solar power system might not be as difficult as you think. The most cost effective and economical way of financing solar power products like solar panels and geysers is to include it as part of your home bond. Bonds are long term loans and these loans can easily include your solar power products without increasing the monthly payment too much.

If you have a long term loan, one that will be paid off for the next 20 years or so, including your solar power system within your bond makes a lot of sense. In many cases, the monthly savings you will make from your solar power products will likely exceed the monthly bond payments for the system itself.

There are many benefits to using a solar power system in your home, and the payback is rewarding. solar panels and solar water heaters are only some of the solar power products available to install in your home. As electricity prices increase, so will your solar savings increase pro-rata.

Another great benefit that many of us overlook when installing a solar power system is that the solar system will increase the value of our home, especially in South Africa at a time when everyone is trying to find ways to avoid escalating electricity tariffs.

So, if you're currently in the market for a new home, solar products such as a solar heater are that much more available to you through your bond. Certainly finances shouldn't limit you from using a solar power system within your home.