Solar & Solar Financing Advice

While the initial investment in solar power can be substantial, it is often one of the most rewarding and cost-effective ways to power your home. 

By financing your solar power system, you can effectively replace your electricity costs with the cost of green energy, enjoying the added benefit of a stable power supply—a true win-win scenario. 

Partnering with a trusted installer ensures your system is properly specified, neither over- nor under-sized. Similarly, working with a reliable finance partner guarantees you get the best possible deal, achieving the perfect balance. 

Don’t think twice, ooba Solar Finance can facilitate you getting the best solar loan for you. We can help you get the solar power system you have always wanted. Get in contact with us now. 

Details regarding finance disbursement will be outlined in your finance contracts. Some lenders may pay you directly, while others may pay the installer directly at different intervals. This could involve a deposit upfront or a full payment upon completion. Chat to us for the details of each option.  

How much does solar power cost in South Africa?   

The cost of your system is very dependent on the size of the system you go for. Systems without solar, won’t give you any savings on your electricity bill but can start at around R50k.  Systems with added solar and a battery typically start at R110k, but they can make a big dent in your electricity bill as well.   

For an accurate quote, reach out to one of our trusted installation partners.

With expert financing experience, ooba Solar Finance will help you explore all options for solar financing. 

• You make use of your existing bond 

Finance your switch to solar energy through your existing home loan. If you have cash available in your current bond, you can use these funds to pay for your solar installation. Alternatively, we could arrange for an extension on your bond. You’ll notice a minor increase in monthly repayments, but you can balance additional amount with a decrease in your monthly electricity bill. 

• You can make use of alternative energy-specific loan options 

Finance your move to solar power by making use of tailored loan products, some of which are even government-backed to ensure you get the best rate. Not only will we help you with the application process, but we’ll also negotiate with financial providers to get you the best possible interest rate. So, if you want a green energy solution for a manageable monthly instalment, get in touch with ooba Solar Finance. 

With a loan, you are responsible for your solar system. With asset finance, the bank will own the system and have the right to reclaim it should there be significant defaulting in payments – much like when you finance a car. This often allows for a lower interest rate.  But don’t feel overwhelmed by the choices. We’re here to provide a transparent way for you to compare and understand your options.  

You will need to have both homeowners/building insurance and credit life insurance. If you don’t already have building insurance, we can assist you in obtaining it through ooba Insure. Lenders typically require proof of life insurance before disbursing the loan, so you will need to provide this documentation as well. 

While solar power may not seem like a straightforward investment initially, it can be highly beneficial in the long run. Investing in solar energy systems significantly reduces your electricity bill, making it a sound financial decision. 

By working with a trusted installer, you can ensure your system is appropriately sized for your energy usage. This balance allows you to effectively reduce or replace your electricity bill with your green energy investment. 

Moreover, the cost of harnessing solar energy remains consistent. Unlike conventional energy sources, you won’t have to worry about annual price hikes. Your energy costs stay the same with solar, providing long-term financial stability. 

Most solar panels come with a 10 to 15-year warranty. Most paired inverter and battery systems come with a 10-year (120–month) warranty, but some may have 5–year (60–month) warranties. For your peace of mind, it is important to correlate the warranty of the equipment you are buying with your repayment terms.

Your solar installer will likely recommend the number of solar panels base on your electricity needs and roof space.  Residential solar panels are approximately 2m x 1m each and should be placed facing as close to North as possible for maximum energy generation and cost savings. However, if you don’t have a big North-facing spot, a combination of East and West-facing is also good to capitalise on the morning and afternoon sun, respectively. 

Yes, you can. It is often very expensive to have a system that covers ALL your bills ALL year around. So, it may be best to find a balance. Reduce your electricity bill as much as possible, but do not opt for a system that is too big for your needs during the sunny and warm parts of the year.  

Make sure that you and your installer are on the same page about what your requirements are and what your nighttime load is. Batteries can store any additional solar power you produce during the day for use at night or during load shedding, but they can also drive up the price of your system.  It is important to find a balance for maximum cost saving and convenience. 

Absolutely. The South African Revenue Service (SARS) offers tax incentives for individuals and businesses that invest in renewable energy, including solar installations. The incentive comes in the form of accelerated depreciation, which allows you to claim a larger portion of the cost of the solar installation as a tax deduction in the year that it was installed. The amount that you can claim as a deduction will depend on the size and cost of your solar installation.  

To claim the tax incentive, you’ll need to complete the relevant sections of your tax return and provide supporting documentation, such as invoices and proof of payment. But speak to your tax consultant first.  

Tax laws and regulations can change at any time, so you will need to stay informed about any changes that could affect your ability to claim your solar tax incentive.  

So yes, there is a tax incentive for installing and owning your solar system. For business-owned system you may be eligible to claim back 125% of your system from your taxable income, if it is installed between March 2023 and March 2025. 

Figuring out the number of solar panels you need is an important step in transitioning to solar energy. Consider factors like the size of your home, your average energy consumption, and the efficiency of the solar panels.  

Yes, installing solar relieves the grid from supplying solar to your home. It may seem like a small impact on the large scale of the grid, but it definitely adds up. Replacing your coal-generated electricity with solar is far better for the environment. Solar is an evergreen resource with infinite supply, helping you to do your bit for climate change.  

The number of solar panels will likely be recommended by your installer and will be dependent on your electricity needs, as well as your roof space. Residential solar panels are approximately 2m x 1m each and should be placed facing as close to north for maximum generation and savings. However, if you don’t have a big North-facing spot, a mix between East and West-facing is also good to capitalise on the morning or afternoon sun respectively. 

Yes, you can. It is often very expensive to have a system that covers ALL of your bill ALL year around.  So it may be best to find a balance, reduce your electricity bill as much as possible, but not have to pay towards a system that is too big for your needs during the sunny and warm parts of the year.  

Make sure that you and your installer are on the same page about what your requirements are and what your nighttime load is. Batteries can store any additional solar power you produce during the day for use at night or in loadshedding, but they can also drive up the price of your system, so it is important to find a balance for maximum cost saving and convenience.