Solar in South Africa

How does Nedbank Solar Energy Finance work?

Last Updated: January 18, 2024By

Are you looking for solar finance? Find out more about the Nedbank Solar Energy Finance plan for South Africans.

Getting solar for your home is not cheap. We recently wrote an article based on a solar installation quote for a 3-bedroom house to go 70% off-grid and not many people have that much cash lying around.

Banks and financial services providers are starting to step up with solar financial products that meet the growing demand for residential solar installations.

Let’s unpack the Nedbank Solar Energy Finance Plan.

 

Why invest in solar power?

It’s quite clear that South Africa’s energy needs are going to come from more than Eskom alone. President Cyril Ramaphosa’s 25 July announcement detailed an emergency energy plan focused heavily on renewables.

One particular aspect of that plan is very exciting for home owners: your solar installation can feed excess energy into the grid and you can get paid for the solar energy that you don’t use (at an as unyet specified rate).

Other benefits of solar include:

  • Not being 100% reliant on grid power means you are less affected by loadshedding and other power outages
  • Tariff hikes won’t affect you to the same extent
  • Your carbon footprint is reduced which helps reduce global warming

What is the Nedbank Solar Energy Finance product?

The Nedbank Solar Energy Finance product is a way for you to finance the costs of your solar installation through your home loan.

This can be done in three ways:

  1. Switch your home loan to Nedbank (and include funds for the solar installation),
  2. If you are an existing Nedbank home loan client apply for a re-advance or additional loan
  3. Use the NedRevolve facility on your home loan

The extra you spend on your home loan repayments will be offset by the money you save on your electricity bill PLUS you have the advantage of reliable energy availability through the solar panels on your roof.

Partnership with Hohm Energy

Nedbank have partnered with Hohm Energy, a marketplace for solar installations. The Hohm Energy website allows you to easily find accredited solar installers near you.

The Nedbank MFC platform is also introducing solar energy finance at the end of August 2022.

Geyser management

Your water heating energy requirements are one of the largest contributor to your energy costs. Nedbank offers a smart geyser management telemetry device (Nedbank Senseable) which alerts you to any geyser problems and allows you to control and optimise your geyser remotely.

Other banks

We’ll watch closely for announcements from other banks about solar finance. Many people are already taking out additional loans or mortgages and solar-specific financial products are sure to proliferate in the very near future.

Why own when you can rent?

Innovative companies like www.decentral.co.za are offering rental options for solar.

This is an attractive alternative for those not wanting to outright buy a solar installation.

The advantage to this approach is that you are in effect renting your roof space to an independent power producer (IPP) while enjoying reliable electricity.

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About the Author: Tony Lopes

Tony is the founder and editor of CleanVolts.co.za. He has completed solar certifications and courses through Green Solar Academy. Tony's goal is to see solar panels on every roof-top in South Africa and the adoption of EVs and renewable technology across the African continent.

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