Solar Financing – Different Options to Choose From

by | Dec 14, 2022 | finance

When raising the topic of residential solar financing – acquiring solar power is less (yet commonly) perceived to be vastly expensive and thus unaffordable to the “Average Ou”. Up until recently there was certainly ‘truth in the topic’, with residents left with two options to pursue;

  • Buy the solar system outright as a capital expense
  • Apply for a bond extension through the banks to finance solar products

The solar market is suddenly flooded with offers in response to the need for renewable energy, alongside the Presidential push for a Just Energy Transition. Throughout both energy crises and also evolving times, the myth of “solar elitism” is gladly being diluted, as renewable energy solutions start to enjoy priority status for many more in those modern days. In this article, we explore the different options that South Africans can consider, in order to make solar energy a reality in their households.

The Industry, and your Solar Financing Options, have now expanded.

What if Versofy could do the same for your energy flow?

Yes! Switching to a solar system for your home is now an option that is within the reach of your monthly finances. And with so many options to procure it in 2023, you can be a solar system richer without the cost of an arm, leg, elbow and spleen. Indeed, joining the solar revolution is more within the grasp of the everyman’s hand than ever before.
With the emergence of residential solar energy subscription packages, residents need not go all-in on purchasing off-grid solar systems , but can rather take advantage of a hybrid-solar alternative that is closely aligned with their monthly Eskom bills.

At Versofy, we have closely tailored our Rental, Rent-to-Own and Outright Purchase solar pricing packages to ensure that solar financing payment options now exist for every budget. Because the need will always be real!

Options to Consider when calculating the Cost of Solar

Buying Outright to Avoid Financing Solar Power in the Long Term

Buying an outright solar system is available at Versofy from just under R150k (for a smaller house) reaching up to R250k for a larger household that requires more energy capacity. The perfect perceived solution for people living on the same street as Richy Rich and Scrooge McDuck.

Many companies pride themselves on business principles such as; price, expertise, and installation. But owing to the fact that Versofy has a vested ownership interest in both our rental or rent-to-own solar systems residing at your property, we take our customer support a step further. Our hybrid Sunsynk solar inverters offer 4.0 monitoring capabilities for perfect oversight from all parties involved – allowing you to optimise your solar system over time to truly get the most from the sun, and your system. Plus all support is included in your contract. Beat that Bruce Wayne!

Bonding Solar Energy by Bank

Solar solutions for the home offered by the bank come in two variants:

  • gaining asset finance through their unique solar division for a 72-month period minimum
  • taking out a further loan against your current mortgage bond

Needless to say, the interest rate is higher and the repayment time is longer with no guarantee of aftercare, nor included support or maintenance. Important to note as well is that you will be referred to an external company to manage the various aspects of your installation. Essentially, with more middlemen involved, you won’t be enjoying the comprehensive service and clarity that prevails when partnering with an all-in-one subscription provider such as Versofy.

The bank is not our fight and there is no us versus them at play here. We see solar financing via the bank as a valuable lifeline that needs to be exhumed only after considering

  • the costs
  • current inflation
  • interest payable
  • potential future Prime Lending Rate increases
  • the repayment duration in years

Taking an extra bond out on your property is something that nobody ideally wants to commit to. Still, it can relieve homeowners, at short notice, should they need a cash-flow injection to upgrade, repair or deal with emergencies.

Rent-to-Own Solar

Much like a cellphone contract, once the contract is up – it’s yours.

Rent to own solar systems, taken as a solar finance contract payable over 60 months, is the flagship product in the Versofy service offering. Signing up for a solar subscription with us means that the benefits and comforts of renewable energy are immediately enjoyed by all in your household, whilst saving on your electricity bill at the same time.

In the long run, you’ll also be saving on significant interest repayments in comparison to bond funding from the major banks. Most financial institutions now offer their own solutions for financing solar power but at different terms and interest rates that differ vastly to the Versofy solar finance solution and value proposition.

Should the rent-to-own appeal to you, we offer a fully financed offering that comes in three different subscription tiers and sizings, based on your solar calculations:

Solar-as-a-Service

Solar as a Service is a relatively new addition to the family of solar products and service offerings. Often categorised as a “pure rental” option, it offers you the benefits of solar energy, for as long as you need it, and is the ideal short to medium-term solution for acquiring solar on your property.

Versofy SAAS Options (Subject to Change)

  • starting rate of R1999pm (Versofy GROW) – 5kW Inverter
  • R2999pm (Versofy CHARGE) – 8kW Inverter
  • R3599pm (Versofy PLUS) – 12 kW Inverter.

Cheaper than renting to own, this exclusive rental agreement enables users to terminate within a shorter contract term (currently 36 months) and for Versofy to collect the system and handle everything, should they decide to move or emigrate elsewhere. Financing solar power this way enables rental subscribers to enjoy the benefits of solar energy even when the property does not belong to them. Support and monitoring included, of course.

Versofy – Solar Financing, personalised and simplified.

Whether you are ready to purchase solar outright, are enticed by the rent-to-own subscription model, or wish to acquire a basic 5kw solar system for the home on our cheapest SAAS plan, Versofy has a solar financing option for every budget and need.

We make “sustainable, attainable” and are ready to expertly manage your switch to the solar energy revolution.

Weigh up your solar financing options and make the smart decision visiting our website to apply for a solar subscription today!

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SWITCH TO THE SUN

Switch and become a part of the renewable energy revolution. By switching to solar you help protect the environment and reduce your reliance on the National electricity grid.

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