Want a loan to go solar? Here are some options and what you need to know

As South Africa grapples with ongoing load-shedding, the Massmart group has announced a solar funding solution to help customers reduce reliance on Eskom.

The group, in partnership with Retail Credit Solutions (RCS), is offering loans of up to R250,000 for those looking to install solar. The group owns brands such as Game, Makro and Builders.

According to the RCS website, the credit solution charges between 15% and 28.25% interest on cash loans, depending on the customer’s risk profile.

The solar loan is available through Makro, Builders and Game stores.

Nedbank also offers home and business owners several funding options to purchase solar systems.

How does it work?

• Find an approved solar expert. You will need to do this before starting your application. You will have to use a Nedbank-approved supplier to secure the loan. This is because the list of Nedbank’s suppliers are fully vetted, accredited and recognised by the South African Photovoltaic Industry Association.
• You then require a needs analysis and quote. Once you have your installation quote and your proof of comprehensive insurance, you can apply for finance.
• Once financed, contact your supplier to arrange your energy solution to be installed.

During his budget speech last month, finance minister Enoch Godongwana announced that individuals who install solar panels in the next year will benefit from a rebate.

“We will introduce a new tax incentive for individuals to install rooftop solar panels to reduce pressure on the grid and help ease load-shedding.

“Individuals who install rooftop solar panels from March 1 will be able to claim a rebate of 25% of the cost of the panels, up to a maximum of R15,000. This can be used to reduce their tax liability in the 2023/24 tax year. This incentive will be available for one year,.”

Godongwana added that businesses will be able to reduce their taxable income by 125% of the cost of an investment in renewable energy.

“There will be no thresholds on the size of the projects that qualify and the incentive will be available for two years to stimulate investment in the short term,” he said.