Tuesday, June 11, 2013

Loans for home Solar PV systems

When solar rooftop FiT scheme was introduced in 2011, many prospective applicants lamented the difficulty in getting financing for the installation of home solar PV. Although cost has gone down quite substantially, price for a typical 4kWp solar PV system is RM40,000, which is still expensive.

Here comes the answer, or at least an alternative.

A couple of days back, Alliance Bank Bhd came up with Home Complete Plus-Solar Panel Financing , a scheme developed jointly with the Sustainable Energy Development Authority (SEDA). It's a kind of personal financing scheme for solar panel.

Datuk Dr. Maximus speaking during the launching. Photo credit: The Star

While not in any way trying to promote the financing scheme, here is a brief overview and features of the loan (Kudos to Alliance Bank for taking the first mover’s risk by offering financing solution for solar PV in homes):

  • Competitive interest rate for installation of Solar Panel
  • Up to 90% margin of finance
  • Monthly repayment could potentially be set-off with Feed-in Tariff payment

  • Tenure                    :  Up to 10 years
    Age requirement     :  21 - 55 years of age
    Minimum income    :  RM3,000 per month
    Loan limit               :  Up to RM150k
    Interest calculation :  Term loan, Reducing balance

    Financing type       :   Single borrower only
                                    No collateral or guarantor needed
                                    Landed property owner only

    "I have been informed by SEDA Malaysia that for now, most of the houses which have solar PV systems installed and are able to benefit from the Feed-in Tariff (FiT) scheme are those where the majority of the financing comes from house owners."
    Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Johnity Ongkili during the launching.

    Other than Alliance Bank, SEDA is currently in talks with Bank Negara on approaching another three banks, mostly local, to participate in the scheme.

    Read more at The SunDaily
    Find out more about the financing at Alliance Bank


    Meitzeu said...

    Good to know that they are discussing with more banks. :)

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    teh ramuan said...

    sangat menarik
    harap2 akan ada pilihan bank nanti