There are several steps to follow when planning to power your home with solar energy. Every situation is different, and what is best for your property depends on a wide range of factors. With financing being a major stumbling block for clients, it is also important to point out that the initial upfront costs are the only significant expense associated with solar systems. After installation, maintenance costs are relatively moderate.

Following the conclusion on a solar solution best for your home or business, determining the appropriate finance choice is pivotal.

SAPVIA discusses with financer and SAPVIA member, Standard Bank their solar power finance solutions on offer for clients looking at purchasing Solar PV assets across all segments.

‘We are capable of covering the complete system costs. This depends largely on the solution required and the risk parameters that we establish for the transaction,’ explains Head of Medical and Natural Resources - Vehicle and Asset Finance at Standard Bank, Deerosh Maharaj.

This ranges from utility-scale projects to home installations. The range of financial solutions will depend on the size and application of the installation. Solutions range from project finance for the largest and most complex projects to home loans and unsecured products for clients in the personal markets.

Maharaj explains that there is a range of finance products and solutions that can be used. ‘Being a commercial bank we are able also to package a mixture of products to provide the most suitable and cost-effective solutions to our clients.’

When considering the cost versus the saving of a system, it is vital to point out that the savings can in some instances finance the system as the monthly finance repayments can be covered by the amount one was paying for their electricity before going solar.

The deal structure determines the security required and the risk assessed. Banks requires a certain level of cover on any transaction they are requested to consider.

Also, several limitations could arise, particularly in solutions targeted at the C&I space. ‘This sometimes occurs due to a detailed feasibility assessment that is required for every system the bank is requested to finance,’ explains Maharaj.

It is a good investment for the business or home, which will save the customer thousands of rands over the years.

Solar energy systems are also eligible for a 12b tax benefit, which can result in additional savings of 28% on cost. In addition to that, they are VAT deductible.

This, together with having a highly efficient, green business or home is a significant gain.