How to switch to solar with CommBank’s Green Loan
Climate change is the greatest challenge that our species will face, but many feel powerless in how to act. One way is to reduce the greenhouse gas emissions from our own lifestyles, which is why switching to solar power makes sense. It’s an easy way to reduce your carbon footprint. But what about the cost of solar?
Financially, solar power is a no-brainer too. I mean, I’m sure you’ve opened your electricity bill and wanted to shove it right back into the letterbox, am I right? Me too! Solar panels save you money. It’s that simple.
But what if you can’t afford solar panels for another few years? You need money to buy the panels to reap the environmental and financial benefits, right?
The initial outlay for solar panels can be a barrier for homeowners on an already tight budget. This is why we’re loving CommBank’s new initiative. They make it easy for you to make the switch to solar panels with green loans for solar.
What is a CommBank Green Loan?
Did you know that instead of saving up for your solar panels, you can get a green loan to pay for your panels right away? CommBank announced its green loans in February this year and rolled it out in May.
What is a green loan? It’s essentially a loan for renewable energy products. It allows you to buy and install products such as solar panels without having to pay the money upfront.
What can you buy with a CommBank Green Loan?
Green loans are only for small-scale renewable technologies at the home you already have a loan for. You can buy products between $5000 and $20,000 including:
- Solar panels (system size equal to or greater than 6 kilowatts)
- Battery packs (system size equal to or greater than 5 kilowatt-hour)
- Solar hot water systems (minimum system size equal to or greater than 250 litres)
- Heat pump hot water systems (system size equal to or greater than 250L)
- Electric vehicle charging stations
Are you eligible for a Commbank Green Loan?
Have you got an existing CommBank home loan? Good news! You may be eligible. Here are the bank’s main eligibility requirements:
- A home balance of $150,000 or more
- The loan must be on a single property, not a business or apartment
- The loan’s value ratio plus new CommBank Green Loan does not exceed 80%
- The address matches the one listed for security on your home
You can only choose an approved green loan retailer
Thinking of getting a mate to install a solar panel? Sorry, Jimbo! No can do. CommBank green loans for solar only applies to retailers approved by the Clean Energy Council, the peak body for clean energy in Australia.
CommBank wants to be 100% certain the green loan is going to reputable companies that run their businesses in accordance with the solar industry’s best practices.
How do green loans compare to standard loans?
The best thing about green loans? Interest rates are generally lower than standard loans. CommBank loans have a 10-year fixed rate of 0.99% PA with no establishment fee, monthly loan service fee or early repayment fee. Pretty cool, right?
Planning on earning more money later on in life? You can choose to pay off your loan sooner with no fees or penalties. This loan feature is great because you know you don’t have to be stuck to a predetermined schedule.
Are there other types of green loans for solar?
Corporations and banks are now making green energy a priority, and green loans give homeowners an incentive to invest in renewable technologies.
There are actually quite a few green loans for solar on the market now, all with their own focus. There are eco personal loans, green car loans and environmental flexi loans. It’s a step in the right direction for sure!
Planning on getting a green loan for solar? Koala Solar is a Clean Energy Council Solar member, so CommBank approves of us! Get in touch for a quote.
– Kev Koala
