Solar Financing Online – Cash Loans For A Green Future?

Solar financing to harness the glowing Australian sun. Looking to install solar panels on your home? You might need to find a way to finance them. At Monzi, we work with lenders offering personal loans from $300 to $10,000. Apply today and we might match you with an Aussie credit provider within 60 minutes. Easy applications. Fast outcomes. Apply now.

Solar panel financing

As we move towards a greener, more environmentally-conscious future, solar panels may become a regular feature on most homes. Not only can they save you money on your next electricity bill, they also create a sustainable and renewable source of energy. Unfortunately, installation costs can be expensive, meaning you may be looking for solar financing.

In short, solar finance refers to the practice of buying solar panels on credit. As we will touch on later, there are a number of different ways to do this. However, a general example is a loan. If approved, you can borrow a lump sum cash amount to put towards the purchase of new panels for your roof. You must then repay this amount via a series of principal and interest instalments over the course of the coming months or years. As a result, you can spread the costs over a period that’s manageable for you.

While that covers the basics, read on to learn more as Monzi explores solar panel financing in-depth.

Is Monzi a solar financing company?

No, we’re not.

Monzi is a lender-finder. We match everyday Aussies looking to borrow money with lenders who can offer instant cash loans from $300 to $10,000. Borrowers can then use these loans to cover personal expenses ranging from emergency travel to urgent car repairs and much more. With this, one way to spend your loan could be to purchase new solar panels for your home.

To help set you on the right path, we’ve provided this handy breakdown of solar panel financing. We’ll explore your options as well as how you might find the right system for your home and needs. From there, you can begin to decide whether or not solar financing is right for you.

Let’s go.

What are my solar financing options?

Solar panels can be one way to reduce your emissions and take a step towards a renewable future. However, they won’t come cheap. Depending on the system you choose, you could be staring down the barrel of costs in excess of $5,000. As a result, people often look for solar financing options to help smooth out the costs. Rather than paying upfront, you can divide the costs into a series of repayments over time.

To get the ball rolling, we’ve provided some of the most common solar panel financing options used by Australians. Check it out:

Personal loans

Banks and other money lenders may offer personal loans that you can use to finance solar panels. Generally, personal loans are paid to you as a lump sum, giving you cash to spend. From there, your lender divides your costs into even repayment instalments that you must make over terms ranging from a few months to a few years. In addition to this, lenders may apply fees and interest on top of the principal amount you borrow.

Through Monzi, you can apply for personal loans from $300 to $10,000. Submit your application during business hours and we might match you with a lender within an hour. Give it a try if you decide that a personal loan is your best solar financing option.

Green loans

Green loans are credit products offered by some financial institutions to borrowers looking to purchase environmentally-friendly products. As a guide, this might include solar panels, certain cars or energy-efficient hot water systems. Often, these loans come with lower costs than standard personal loans. However, their availability may be limited, given that only some lenders will offer these products and only certain borrowers will qualify. In any case, it is still an option worth investigating if you need solar finance.

Combine it with your mortgage

Rolling the cost of your panels into your existing mortgage is essentially a way to consolidate debt. With this, you can potentially take advantage of the lower rates offered on home loans compared to personal loans. Given that your mortgage may have a term of up to 30 years, adding the costs of your panels may only add a little extra time. Best of all, you can get your panels installed today so that you can begin reaping the benefits.

However, before you do this, ensure that you have considered the costs and how the additional debt may impact your mortgage repayments. Moreover, confirm with your bank whether or not you can add solar costs to your existing mortgage loan.

Rent to buy

You may be able to find a rent to buy agreement to have solar panels installed for no upfront costs. From there, you’re required to make a series of ongoing, monthly repayment instalments. Unlike a loan, you won’t actually own the panels until the rental period elapses. As a result, maintenance may not be your responsibility. However, you’ll need to weigh up the costs and any interest charges to determine if it would be a more suitable option than the others that we’ve listed previously.

Pay cash

While this isn’t exactly a financing option if you can afford to do so, paying cash upfront may be the most cost-effective way to purchase solar panels for your home. Obviously, costs can easily exceed $5,000 for a new system, meaning it won’t be cheap. However, you will avoid the interest charges and fees that may be applied on a loan. That way, you may be able to recoup your initial investment sooner than if you borrow money to finance the purchase.

Before you pay with cash, ensure you consider your budget. With a significant upfront outlay required, ensure that you can afford to do so. Consider your income, savings and whether you have any significant upcoming expenses.

Solar financing: is it worth it?

Financing solar panels can be a difficult balance. There’s no avoiding the fact that solar panels are an expensive investment. Often, financing is your only realistic option, unless you can afford to pay thousands up front. Unfortunately, there are usually costs involved with financing (e.g. fees and interest).

With this, you’ll have to carefully consider the pros and cons. From a positive perspective, solar panels will reduce your power bills. Over the course of many years, you should be able to recoup your initial outlay. However, if you opt for finance, then this may take longer than if you paid cash up front. Ultimately, whether it’s worth it will depend on your financial situation.

Solar financing calculator

If you’re concerned about how much solar financing may cost, you might look at finding a solar financing calculator. In short, these calculators will work in the same way as other personal loan calculators.

Firstly, you must input the key details of your loan. This might include your interest rate, loan amount and repayment term. From there, the calculator will generate estimates of your monthly repayments and total loan costs. You can then use these figures to assess whether solar financing would work for your budget.

That said, remember that all loan repayment calculators can only generate estimates of your total costs. If you apply with a lender and are offered a loan, then your terms may vary. So, use these figures as a guide.

What types of solar systems are available?

Not all solar panel systems are the same. If you’re in the market for solar financing, you’ll need to decide which option to choose.

Firstly, you can select a grid-tied system. This is by far the most common choice for everyday consumers looking to reduce their energy bills and make a greener choice. Energy generated by the panels is used first before energy is drawn from the power grid. However, grid-tied systems don’t provide energy overnight.

For something a little more advanced, you might consider a hybrid or battery-ready system. This allows you to store energy, meaning you can use your solar-generated power at night. While these systems are still connected to the main power grid, it does create a little more freedom. However, the initial outlay for one of these systems will be higher, given that you must pay for the battery.

Finally, you may select an off-grid system. This is by far the most expensive choice and may only be appropriate for those looking to completely disconnect from the grid or those who cannot connect their home to the grid. Generally, you’ll need many panels and a few backup batteries.

Will my property affect the amount of power I can generate?

Yes, it may.

First and foremost, your climate may play a role. Across most of Australia, we have an abundance of sunshine. As a result, it shouldn’t be too much of an issue. However, if you live in an area that is prone to consistent rain or long periods of gloomy weather, this can impact the energy you generate.

Beyond this, the orientation of your home may be a factor too. Generally, north-facing panels will receive the most sunlight in Australia. However, east and west-facing panels should be OK too. The direction your panels face may be limited by the roof design and orientation of your home.

Finally, the immediate environment surrounding your home may have an impact too. If your home is shaded by large trees or other obstructions, this can limit the amount of sunlight that reaches your panels. As a result, your panels may not be able to generate as much energy as you would have hoped for.

Ultimately, most solar installers should assist you to find the most appropriate and accessible position for your panels to maximise the amount of energy produced.

Are there any rebates or incentives to make solar financing worth it?

Yes, there may be.

Depending on your location, there might be various state-based or federally offered incentives designed to encourage everyday Aussies to purchase new solar panels. On a national level, the key scheme is the small scale renewable energy scheme.

Ultimately, you must do your own research to determine what you can claim or what schemes you may be eligible for. In some cases, these schemes may help you afford the costs of installation or could help cut your energy bills.

What are the advantages of solar panels?

So, you might be wondering what the main selling points of solar panels are. Well, at Monzi, we’ve compiled this quick list of some of the key advantages. Check it out:

  • Clean energy: do your bit for the environment. By using solar, you can help to reduce your total greenhouse emissions.
  • Save money on power bills: by generating your own energy, you may not have to rely as much on the central power grid. That way, you can potentially cut your energy costs considerably.
  • Easily-managed: while they may need a clean from time to time, solar panels are generally low maintenance and won’t require too much work to keep them operating.
  • Sell power back to the grid: if you’re producing more power than you use, it might be possible to sell it back to the grid. If you’re lucky, this could provide a discount on your next power bill.

Solar financing used to purchase a panels with an upwards tilt

What are the disadvantages?

Solar panels may be good for the environment and can save you money on your electricity costs, however, there are disadvantages to consider too. As a guide, some commonly cited drawbacks include:

  • Significant upfront expenses: while solar financing may allow you to better manage the costs, there’s no avoiding the fact that a brand-new solar panel system will set you back plenty.
  • May degrade over time: as your panels and batteries age, their performance may begin to decrease. As an approximate rule, panels may lose 20% of their efficiency within 20 years.
  • Weather-dependent: while Australia is known for its hot and sunny days, your panels cannot produce as much energy during periods of rain or cloud. As a result, you may still need to rely on energy from the grid.
  • May not suit your home: if your roof is obstructed by surrounding buildings or trees, then solar panels may not be a realistic option for you.

Finally, remember that solar panels are only an option for homeowners rather than renters. If you are currently a tenant in a rental property, then you won’t have the option to add panels to your roof.

Do I need a solar inverter?

Yes.

If you are installing solar panels, then having an inverter is an absolute non-negotiable. In short, an inverter converts DC current generated by your panels into AC current. AC current can be used to power all the appliances and other electrics in your home, DC cannot. Therefore, without an inverter, panels would be generating worthless energy that could not be harnessed.

Given this, an inverter is one of the most important features of your solar panel system. As a result, it’s important to purchase a high-quality, durable product to maximise efficiency. Low-quality inverters may affect the reliability and efficiency of your solar system.

How hard is it to get solar financing?

Lenders vary in their eligibility and qualifying criteria. Therefore, your ability to access solar financing may vary based on your financial situation and the type of loan that you are applying for.

Generally speaking, to receive loan approval of any kind, you must be earning consistent income and managing your budget well. That way, lenders may trust that you will be able to repay any money that you borrow. Moreover, you may need to meet other criteria too related to your credit score or expenses. Ultimately, it depends on the lender you are dealing with and the criteria that they apply.

As a guide, before applying, it’s usually a good idea to get your finances in order. In other words, pay off any other outstanding debts (e.g. credit card debt) and cut down on unnecessary expenses. This may allow you to maximise your borrowing power.

How long can I get solar financing for?

In short, that depends on the type of solar financing that you use.

If you roll the costs of your panels into your current mortgage, then your solar financing may not be totally repaid until you’ve paid off your mortgage. However, if you take out a personal loan or green loan, then your repayment terms may range from approximately one to five years. Again, though, this may depend on the loan you are offered.

Given this, you must do your best to find solar financing with a suitable term for your budget. While we’d all love to be debt-free ASAP, consider what you can afford to pay. A short term loan will come with higher repayments but you can repay it faster. By comparison, a long term loan will come with lower regular repayments but could be unnecessary. As a result, it’s about finding the right balance. Consider using a personal loan calculator or other similar tools to gain a better understanding.

What should I think about before applying for solar energy financing?

If you’re a homeowner and intend to stay in your house for many years, solar panels may eventually pay for themselves via the savings on your energy bills. However, installing panels is not a decision to be taken lightly. Here are some factors, tips and tricks to consider before you do:

  • Electricity costs: how much are you currently paying for electricity? Would solar cut your costs? Some online solar savings calculators may be able to give you a good idea.
  • System costs: can you pay in cash or will you need to utilise solar financing? Is this affordable for your budget?
  • Get multiple quotes: if you accept the first quote you find, you don’t know how much money you could save elsewhere. As a result, you should approach multiple solar installation companies and request a quote.
  • Quality: lower quality panels may save you money today, but they may not be as effective as better quality products. Check out past reviews and product features to find your ideal panels.

Beyond this, there may be many other factors worth taking into account. At the end of the day, you must compare your options for financing and equipment. Aim to find the deal that suits your circumstances the best. Finally, don’t be afraid to seek out professional advice.

Solar financing and Monzi’s lender-finder service

From green loans for solar to personal loans, you might not know where to begin when looking for solar financing. At Monzi, we’re a lender-finder service. While we won’t offer you direct cash, we’ll instead do our best to pair you with a lender from our network offering quick cash loans from $300 to $10,000.

With the range of loans on offer, you may apply for unsecured loans or secured loans, depending on your cash needs. Moreover, with repayment terms ranging from 12 to 24 months, you may be able to divide your costs over a manageable term. Finally, as Monzi operates exclusively online, you can apply from anywhere, at any time.

Apply now with Monzi. It’s fast, easy and we might take the stress and hassle out of finding a lender.

Am I eligible to apply?

To apply with Monzi, you must meet our eligibility criteria. So, before you begin, make sure that you check these four boxes:

  • Australian citizen or permanent resident.
  • At least 18 years old.
  • Have a current email address and mobile phone number.
  • Can provide details of an online bank account where your income has been deposited for the previous three months.

No worries? You can begin your application now. Find out how you can get started with Monzi below.

How do I apply?

We’ve made applying easy because we don’t believe loan applications should be a headache. All you need to do is complete four easy steps and then you can get back to the more important things in life. Here’s how to apply with Monzi:

  1. Choose your ideal loan amount and repayment term. Note that small loans under $2,000 come with fixed 12 month repayments.
  2. Provide the necessary personal and financial details to complete Monzi’s easy online application form. Then, hit ‘Submit.’
  3. Monzi will do the heavy lifting from here. Our automated system will attempt to pair you with an available lender from our network.
  4. We’ll let you know your outcome via text or email. If successful, your new lender should reach out soon after to begin the assessment process.

Remember that approval is not guaranteed. While we’ll do our best to match you with a lender from our network, we cannot say with certainty whether your application will be successful.

Can I get solar financing with bad credit?

You may.

At Monzi, we understand that your credit history reflects your past. However, it doesn’t always represent your present. While you may have previously made some mistakes, these days, you may be managing your money more effectively. The lenders that we work with understand this too.

If you apply with Monzi, we might be able to match you with lenders offering cash loans for bad credit from $300 to $10,000. In short, rather than just looking at your credit score, lenders will use the latest technology to assess your recent spending habits. If you have your budget under control, then you may be offered the cash loan you need.

However, again, remember that approval is never certain. Lenders may offer bad credit loans for solar panels at their discretion.

What about with no credit check?

No credit check loans to help you purchase solar panels may be a little more difficult to find. While Monzi won’t conduct a credit check, if you are matched with a lender, then they may analyse your credit report as part of your loan assessment. Often, these checks will be unavoidable and Monzi cannot guarantee if you will be offered a loan without one.

While you may think this could seriously impact your chances of approval if you have really bad credit, remember that lenders offering online loans may be more understanding than traditional lenders. If you earn a regular income and display good financial habits, some lenders may approve your application even after they conduct a credit check.

Is a personal loan the best way to finance solar panels?

In short, Monzi cannot say.

If you are a homeowner and would like to purchase solar panels to live a cleaner future, you may consider applying for a personal loan online. However, as we’ve touched on, this won’t be your only solar financing option. Therefore, it’s up to you to weigh up the pros, cons and costs of each. From there, you can decide whether or not solar loans are right for you.

If you decide to take out a loan for solar, you can apply with Monzi from $300 to $10,000. Moreover, you may use these loans to cover a variety of other expenses too (e.g. car repairs). So, if you’re in a bind, Monzi might be one place to start.

Can I contact Monzi?

From solar financing to quick easy loans, we understand that borrowing and lending can be tough to wrap your head around. That’s why, at Monzi, we’re always happy to help you out. If you have any questions, you can contact Monzi at hello@monzi.com.au and our customer service team will get back to you with a prompt and polite response.

That said, remember that Monzi is a lender-finder. As a result, we may be unable to answer questions about solar panels or the exact solar financing you may be offered. These questions may be better directed to more relevant organisations. Ultimately, Monzi cannot speak on behalf of any other organisation.

Finally, for more information, check out Moneysmart’s guide to personal loans.

Solar financing: personal loans from $300 to $10,000

When you need a loan, why not turn to Monzi?

Our fast and easy lender-finder service could make it simple for you to find a great Aussie credit provider online. Don’t spend your day scrolling through the endless list of search results, just submit one application with Monzi. Best of all, it’s 100% online so you can get started at any time, from anywhere.

Apply today from $300 to $10,000. Scroll up to Monzi’s loan slider or hit the “Apply Now” button.

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Factor In

Costs

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You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000

Terms

12 months (minimum)

12 months (maximum)

Costs

20% upfront establishment fee

+ 4% monthly fee

Example

Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. The minimum and maximum loan term is 12 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Loan amount

$2,001 - $4,600

Terms

13 months (minimum)

24 months (maximum)

Costs

48% Annual Percentage Rate (APR)

67.41% Comparison Rate p.a.

Example

Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principal Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Annual Percentage Rate (APR) for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Loan amount

$5,000 - $10,000

Terms

13 months (minimum)

24 months (maximum)

Costs

21.24% Annual Percentage Rate (APR)

48% Comparison Rate p.a.

Example

Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principal Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Annual Percentage Rate (APR) for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.