In the housing energy transition, one renewable source stands out from the rest: solar photovoltaics.
Falling costs over the last decade have made it more affordable.
But sometimes the initial investment is an entry barrier to joining self-consumption.
Today, we can finance solar panels and take advantage of all the benefits of solar energy. More savings on your electricity bill while reducing pollution.
Therefore, in this article we explain all the necessary information about financing solar panels:
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What is the loan required for financing
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Who can apply for a loan
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Conditions for financing
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Alternatives to financing your purchase
Loan for financing solar panels
Loans are not a product we are unfamiliar with.
In the case of solar panels, the personal loan is the most flexible method of financing solar panels and is granted by a bank or financial institution.
This product encompasses the financing of any type of needs such as a purchase, a car, renovation and, therefore, self-consumption is also included within these characteristics.
Even if you decide to apply for a loan for the photovoltaic installation, it is not enough to want it.
It is not granted to everyone, but it is necessary to meet a series of requirements in order to obtain financing for solar panels.
Let’s take a look at the conditions set by the banks:
What requirements must you meet to access the financing of the photovoltaic installation?
To finance the solar panels with a personal loan, you must meet the following conditions if you want to get the bank’s approval:
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You must be over 18 years of age. Indicate the possibility of having a stable credit history and a regular source of income.
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You must be financially sound. The lender will assess your ability to repay the borrowed money plus interest. Generally, this is associated with a permanent job or stable income.
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Present the requested documentation: ID card, bank account number, copies of your last paycheck. These are the requirements that are generally requested, although they may vary depending on the entity.
Conditions for financing solar panels
Once we are clear about the requirements, let’s talk about the conditions of the loan.
Because the conditions for obtaining financing for a photovoltaic system differ depending on the financial institution granting the financing.
And what are the key elements? Here they are:
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The term of the loan. This is the time established for repaying the capital loaned plus interest.
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The interest rate. The money it costs you to obtain the financing, expressed as a percentage of the capital requested and set by each financial institution.
But before moving on to the next point, it is important to know the different interest rates: TIN and APR.
What does each concept mean and how does it affect you?
Let us explain.
On the one hand, we have the Nominal Interest Rate (NIR) which indicates the change in the value of money in a specific sale, i.e. it is a fixed percentage agreed with the bank as a payment concept in exchange for borrowed money. In reality, it is informative in nature and is of little use to the end consumer.
Now, what is the Annual Percentage Rate (APR)?
It is an indicator that includes several variables such as the APR itself, cancellation or amortisation fees, transaction costs, among others. The cost to pay generated by the credit.
Are there other ways to switch to self-consumption?
If financing does not convince you, there are two other ways to switch to self-consumption:
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Renting solar panels
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The purchase of the system
Leasing of solar panels (or solar subscription)
If you do not have the budget to make an initial investment in the installation, but you want to start saving as soon as possible, it is possible that renting solar panels is an interesting option for you.
You will only have to pay small monthly fees to take advantage of self-consumption in your home. Just like a subscription.
The rental period is 20 years and, after that time, it will become part of your property for just one euro more.
In addition, you have all these advantages:
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100% of the maintenance is at our expense. Any defect in the installation or replacement of parts, it will be our responsibility to repair it.
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Compatible with IBI and ICIO rebates.
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Reduce your electricity bill from minute one.
>> Find out how much you can save by renting solar panels today.
Buying solar panels
You can also buy the system in cash.
If you have sufficient budget to cover the initial investment and you want to own the installation from the very first moment, just as if you were buying a house, this is an interesting alternative for you.
And this is one of the main benefits: ownership. You buy it and it’s yours, it’s as simple as that.
Just like the solar subscription, you are entitled to apply for subsidies for solar panels. However, maintenance is not included.
However, you don’t have to worry. Maintaining a photovoltaic system does not require a great deal of effort.
You can take a look at our article on buying or renting solar panels to decide which is the best investment in your case.
How to finance your solar panels with BBVA and SolarMente
With all the information in hand, you can now make a decision that suits your interests.
Now, if you decide to install your solar panels with us and finance your purchase, you can do so with our partner bank: BBVA.
And these are the financing solutions you can choose from:
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12-month interest-free loan with an arrangement fee of 3.5%.
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5-year maximum loan, with no arrangement fee but with an interest rate of 6-7% (depending on the circumstances of each person).
If you want to finance your solar panels with us and start saving on your electricity bill as soon as possible, just click on this link and tell us about your case.
