We know that Enphase microinverter systems cost more upfront than central inverter solar systems. We also know that microinverter systems save considerably more money long term than central inverter systems do. If you’re keen on an Enphase microinverter system, but resistant to the upfront cost, a green loan from Plenti might be the way to go.
Why is that? Because they can be cash flow positive from day one.
At Penrith Solar Centre, we’ve seen financing options for solar come and go. Green loans are an excellent choice to finance your solar. Green loans are an incentive from the government to switch to renewable energy. Plenti has picked up the ball and ran with it, but what does this mean for you as a solar customer?
In this article, you will learn:
- Who Is Plenti and What Do They Do?
- Is Financing Solar Panels Worth It?
- Interest Rate Incentives and Discounts Through Plenti
- What Does Cash Flow Positive Mean for Solar Panels?
- Added Benefits of VPP Integration
By the end of this article, you’ll have a strong understanding of what this financing option can do for you and your solar purchase.
Who Is Plenti and What Do They Do?
In late March, the Australian Prime Minister, Anthony Albanese, announced the Solar SunShot program. This program allocated $1 billion to build infrastructure in our country’s solar industry.
Part of that funding includes expanding green loan programs to incentivise citizens to adopt rooftop solar, especially if they add a battery and sign up for a Virtual Power Plant (VPP).
Plenti offers green loans as part of this funding provided by the government.
- Plenti is a finance aggregator backed by a Big Four bank. This means they specialise in a wide range of loans, including green loans and renewable energy financing.
- Plenti’s business model focuses exclusively on finance, ensuring a dedicated approach to providing innovative loan products and customer-centric financial services.
- They offer competitive interest rates that are often comparable to traditional home loan rates, making green investments financially viable.
If you’re interested in learning a bit more about Plenti Green Loans, you might want to check out the following article titled, Guide to Plenti Green Loans for Solar in Australia.
Click here to power up your savings
Is Financing Solar Panels Worth It?
Yes. Here’s why:
Potential Cash Flow Positivity:
Choosing a solar and battery system that’s financed can make your purchase cash flow positive from day one, providing immediate benefits. It’s making money for you from the moment it’s installed.
This is currently the best option available in the market. Your investment starts paying itself off right away.
Long-Term Ownership Benefits:
Once fully paid off, every watt of power it generates is free. All returns from energy savings and VPP earnings go directly into your pocket.
It’s possible to eliminate your bills with a solar battery, which is a significant upfront cost. That cost is reorganised with cash flow positive payback periods through Plenti green loans.
Flexibility in Loan Repayment:
You’re able to choose your loan term up to 15 years. A 15-year loan term might seem daunting, but this one is flexible.
You can pay off the loan early at any time without penalties. This reduces the total interest paid. You only accrue interest on the outstanding balance during the time you have the loan.
Utilising Tax Returns:
Tax returns or windfalls from investments or property can be used to accelerate the repayment process. Applying these funds annually to pay down the loan reduces the principal faster, leading to lower overall repayments and earlier ownership of the system.
If you’re interested in learning a bit more about an additional rebate that was recently announced, you might want to check out the following article titled, Everything You Need to Know About the Home Battery Rebate for NSW.
Interest Rate Incentives and Discounts Through Plenti
Green loans with Plenti incentivizes energy efficiency with lower interest rates. Interest rate incentives are for projects that incorporate energy-efficient devices and products.
Battery Integration Discount
Customers can enjoy an additional 2% discount in interest rates when they integrate battery storage with their solar panel installations.
Energy-Efficient Devices
When you add additional energy-efficient devices or products that help you produce, store, and consume your own energy, the government incentivises that too.
For example, if you bought a solar battery and an electric vehicle charger (an energy-efficient product), you would get an even better interest rate on top of what you’re already rewarded with for adding a battery.
There’s one more incentive to knock a little more off that interest rate (signing up for a VPP), but you’ll have to keep reading to find out about it.
If you’re interested in learning a bit more about the process of choosing components for your solar system, you might want to check out the following article titled, How to Shop for a Solar System.
What Does Cash Flow Positive Mean for Solar Panels?
Opting for longer loan terms can result in increased cash flow positivity over time. The more you spend on a solar system, the better it will meet your energy needs and goals. The bigger the system, the more you save over time.
Example Calculation:
Let’s estimate how a 15-year loan term makes you cash flow positive.
We’re using very simple estimates to illustrate an example. The actual numbers are something you can work out with our sales consultants.
- You’ve invested in a 15kW system with battery storage. You will most likely reduce your energy bill to zero with a system of that size with a battery (or two).
- Your energy bill is $1,500 per quarter.
- But your monthly payment on a 15-year Plenti Green Loan is only $1,000 (hypothetically).
- From day one, you are $500 cash flow positive. That’s $2,000 a year in immediate savings.
Opting for a financed solar and battery system means you don’t need to dip into your savings. While there’s an interest component to repay Plenti, the system can generate income that can offset these costs, effectively making your investment profitable from the start.
If you’re interested in looking at the payback period of solar without cash flow positive financing, you might want to check out the following article titled, What is the Payback Period for Solar Panels in Australia?
Added Benefits of VPP Integration
The upfront cost of solar batteries prevents a lot of folks from purchasing one. It’s impossible to get your energy bills to zero without a battery of some sort, but it can be done.
Installing a battery system offers several advantages beyond just energy savings. It provides backup power during outages and gives you greater control over your energy usage.
What is a VPP?
VPPs are networks of home solar systems with batteries that act like mini power plants. Instead of one big power station, a VPP uses many smaller sources (residential and commercial solar batteries) to provide energy.
VPPs use cloud-based software to connect the solar batteries in their networks. The VPP software coordinates each solar battery connected in the network to discharge its stored energy reserves to relieve the grid.
Financial Benefits with VPP:
VPPs can significantly increase the value of the energy stored in your battery. At times, your energy could be valued as high as $20 per kWh, which is extremely lucrative.
The VPP provider pays this back to customers. With a little critical thinking and observation, you’re able to turn your solar battery into a source of passive income.
Payback Period with VPP:
By integrating a VPP with your solar and battery setup, you might see your entire system pay for itself in five to six years, especially with the added efficiency and earnings potential from the VPP.
With a financed solution and a VPP, your solar system essentially pays for itself over time while generating additional income, making it a clear financial advantage. One that offers energy independence.
If you’ve signed up for a VPP after your solar is installed, you’ll receive an additional 0.6% off your interest rate, saving even more money.
If you’re interested in learning how you can turn your solar battery into a source of passive income, you might want to check out the following article titled, Variable Feed-in Rates and VPPs in NSW.
It’s Accrual World Out There So Finance Through Plenti
Now you know some general information about financing your solar through Plenti and how it can make your cash flow positive from day one. Opting for a financed solar through Plenti provides flexibility in repayment and ownership benefits over the system’s lifespan. It’s a strategic financial choice and a solid one.
At Penrith Solar Centre, every quote starts with a conversation about your unique energy needs and goals. Some customers are resistant to the upfront cost of solar, and options like a green loan through Plenti are a great jumping-off point when you’re ready to talk payment with a solar consultant. We’re here to help you through the process.
If you’re interested in learning a bit more about saving money on the upfront cost of solar, you might want to check out the following article titled, How Does the Solar Rebate Work?
