Overcoming the Rent-A-Roof Mortgage Situation

by Jarrah Harburn on April 24, 2012

As mortgage complications have become apparent with the ‘free solar’ scheme; one of the most common methods for installing solar panels on residential properties has been lost. With April’s installation figures showing a considerable decline in overall solar installations, the market is clearly struggling to adapt following the recent March Feed-in Tariff (FiT) cut-off. However it’s not all bad news, as this article highlights a Solar Selections unique finance package that can overcome the issue completely.

We here at Solar Selections pride ourselves on being innovators with co mplex problems. We also are well aware of the advantages that the ‘free solar’ scheme offered. In line with this we can now offer a UK wide finance service for people considering solar power for their homes and small businesses. Different from the ‘free solar’ approach in a few unique ways, this method allows customers to purchase a system for £250 and then pay it off with their feed-in tariff earnings. By including a 12 month cooling off period the scheme allows people to use their solar panels to put them in a cash positive position, then make the payments from their savings over the succeeding years.

Available for all domestic installations on the national grid under 4kWp this finance utilises the 25 year guarantee on the feed-in tariff as security for repayments. The mortgage situation is not an issue as the customer owns the system during the entire process. By choosing a repayment plan in line with their tariff income the approach works just as well as the ‘Free Solar’ method as it involves no negative financial position being reached.

Some more information on this offer is outlined below .

Our previous articles on planning permission victories are indicators that not all institutions are against the industry and with applied efforts the market can continue to grow. This is just one example of how the solar panels industry can adapt and continue to prosper despite the hurdles placed before it via council and government restrictions on solar installations. By taking advantage of the feed-in tariff while it is guaranteed we can all look to have more solar panels on our buildings for the coming years.

Cash Flow Positive Finance Summary

Key Benefits:

  • Ownership of the system is retained the entire time.
  • Small deposit of £250.
  • Installation of a solar panel system (<4kWp) by our dedicated MCS & REAL accredited installation team at zero cost.
  • Above industry standard 5 year workmanship and post-installation service provided by experienced Installation Company.
  • Insurance underwriting available.
  • Spreading the cost of the system means the tariff income alone covers all repayments.
  • First payment is deferred for 12 months.
  • The property benefits from energy savings throughout the repayment process.
  • Choose to borrow from 1 year to 25 years – pay the remaining amount off at any time.
  • Choose from a range of accredited Panel and Inverter options.
  • Credit available to most, >95% success rate.

Cash Flow Positive Example with No Outlay

As can be seen from the below table, the first 12 months require no payments and allow the customer to build up a small net profit. By using these savings as a buffer as the payments commence a cash flow positive position can be maintained and no out of pocket expenses experienced besides the initial £250 deposit.

Example* for a 4kWp system Financed over 10 Years

Yr.

Avg. 4kWp Income/month

Repayments/month

Cumulative Net Profit

1

£64.47

£0.00

£773.69

2

£66.41

£81.00

£598.59

3

£68.40

£81.00

£447.40

4

£70.45

£81.00

£320.83

5

£72.57

£81.00

£219.63

6

£74.74

£81.00

£144.55

7

£76.99

£81.00

£96.37

8

£79.30

£81.00

£75.92

9

£81.67

£81.00

£84.00

10

£84.12

£81.00

£121.49

11

£86.65

£0.00

£1,161.27

12

£89.25

£0.00

£2,232.24

13

£91.92

£0.00

£3,335.34

14

£94.68

£0.00

£4,471.53

15

£97.52

£0.00

£5,641.80

Note: These figures do not include the bill savings made through installing a 4kWp system on your home. A 4kWp system will save approx. £220 (assuming 50% consumption) in year 1.
* This is for example purposes only, repayment amounts will change depending upon system selection, credit rating, etc.  Repayments may be slightly lower or higher. Terms and conditions apply and eligibility is limited.

For more information on the finance offer in this article contact Solar Selections on T: 020 7205 2267 or sales@solarselections.co.uk

Written by Jarrah Harburn

jarrah@solarselections.co.uk

T: 020 7205 2267

© 2012 Solar Selections Ltd

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{ 2 comments… read them below or add one }

Mike May 9, 2012 at 2:42 pm

No mention of APRs on these installations though…?

Reply

admin May 25, 2012 at 8:09 am

Hi Mike,

The payments are fixed monthly payments. All admin fees and interest rates are incorporated into the monthly fee. These may vary depending upon the size of system, panels selected, credit rating of client, etc. However, the terms are very flexible, the client can choose to pay the system off over 2 years or 25 years. I hope this helps,

Regards,

The Solar Selections Team

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