Bright future: Standard Bank’s affordable Solar Loans light up SA homes
Standard Bank revolutionises solar adoption with affordable loans, enabling households with reliable supply and savings on electricity. Over 8 900 solar panels were installed, generating substantial savings and sustainable energy.
Many South African households dream of adopting solar power to enjoy saving on electricity bills and relief from power outages. Although South Africa is poised to become the tenth-largest solar cell market in the world, the lack of affordable financing options has historically meant that home solar installations remained out of reach for many.
This is where financial services providers like banks have come in. Banks play a crucial role in helping homes manage the initial larger financial capital needed for a solar installation. One bank that continues to lead the charge in the shift to affordable solar financing for homes is Standard Bank.
The bank was the first to launch a residential offering based on the government’s Energy Bounce Back Loan Guarantee Scheme.
The bank’s commitment to facilitating household adoption of solar power has resulted in the disbursement of almost R220 million in loans since the beginning of 2023.
“From the outset, we knew that it was important for us to support the adoption of renewable energy in South Africa. Not only do we identify solar power as a crucial contributor to decreasing the pressure on the country’s power grid, improving economic performance, and lowering our carbon emissions, but we also believe that this technology can significantly impact the quality of life and long-term savings within households."
To date, the bank has facilitated the installation of over 10 500 solar panels, producing an estimated 12 000 megawatt-hours of renewable energy and generating more than R39 million in estimated annual savings for South African homes.
Standard Bank’s commitment to assisting households to access affordable solar finance is realised through various financing options and initiatives. These include a Solar Loan that is promoted through LookSee, the bank’s pioneering home efficiency platform that empowers homeowners to save money, manage, and enhance their properties.
“The standout feature of the Solar Loan is the personalised interest rates that range from prime +1% up to a maximum of prime +2.5%. This is significantly lower than the average offered on unsecured lending offerings,” says Spitz.
The Solar Loan is available for amounts ranging from R3 000 to R300 000 and enables financing for any type of residential installation that includes at least one solar panel. Households can utilise this loan for various purposes, from powering electric geysers with solar panels to undertaking extensive home solar installations. The Solar Loan offers flexible repayment terms from 1 to 5 years, with no penalties for early settlement.
Home loan-based finance
Standard Bank has considered how to assist customers in leveraging their home loans for renewable energy pursuits.
“Many homeowners consider their home loan as the optimal source for solar financing. It not only provides the best interest rate terms but also aligns with the idea that a solar installation is a permanent addition to the home,” says Spitz.
A further feature in the bank’s offerings allows new home loan customers to be automatically assessed to determine if they qualify for an additional 20% future-use registration amount, which can be utilised for approved home improvements like solar installations.
This additional amount does not incur registration costs, and successful customers receive a 25% discount on the registration costs of the original loan amount. Customers without a future-use facility can still finance their solar projects through their home loans.
“Our Access Bond customers can readily use the available funds in their accounts, and all our home loan customers in good standing can apply for a re-advance. This option allows homeowners to access the capital payments already made on the bond without incurring additional registration fees."
Customers can calculate the potential re-advance loan amount by simply subtracting their outstanding balance from the original registered amount of the bond. If a re-advance does not fully meet their solar needs, customers can consider a further loan.
“This involves increasing the home loan amount, which attracts registration costs and could result in a change in interest rates, depending on the customer’s credit profile. This option depends on having sufficient equity in the property to cover the increased amount, making it suitable for homeowners who have owned their homes for a few years and have seen an increase in property value,” he explains.
Bank-vetted installations
Another innovation from Standard Bank is the option to use LookSee’s end-to-end solar installation service, which offers competitive prices on top-quality equipment, full support throughout the process from the dedicated Solar Customer Care Team, and fully vetted installation capabilities.
“This means that customers who choose this option need only one point of contact throughout their entire solar journey and can be confident that their investment will endure,” he says.
To make your home a contributor to a more sustainable world through solar energy, visit Standard Bank HERE.
Read more stories like this on Standard Bank’s Sustainable Impact hub below.
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