Salop Energy launches SolarSense
Shrewsbury based Salop Energy Ltd has launched a specialist loan scheme aimed at homeowners wishing to install solar panels who previously did not have the cash or could not raise the necessary finance.
The new initiative which involves Salop Energy Ltd and Hitachi Consumer Capital Finance is called SolarSense. With a value up to £50,000 the loan comes at a fixed rate of 7.9 per cent APR, can be taken over a period between three and ten years and repaid in full at any time without an early repayment charge.
Salop Energy will offer the same installation charges to both self-financed and SolarSense customers, who will own the entire system and keep all the income it generates through the feed-in-tariff (FITs) system. According to Hitachi Capital Finance which will be offering the unsecured loans, approximately 85 percent of applicants should be accepted, provided they fulfil certain basic criteria such as having a job and owning their home. The credit check will be similar to that of a mobile phone contract
Salop Energy director Gareth Jehu believes the returns from Solar PV panels are still very attractive and is confident that SolarSense will be extremely popular with people who have wanted to generate their own electricity, but have been put off by the initial up-front capital cost of a system.
He said: “We are absolutely delighted that Hitachi Consumer Capital Finance have taken the initiative in offering this extremely attractive concept to UK homeowners. Despite big cuts to FITs by the government, large reductions in the price of a system mean the returns are still generous. Installed systems will still generate approximately 10 per cent net depending on their size, the price paid and future electricity prices.
"I am sure there are a huge number of potential customers who are sold on the concept of free energy from the sun, as well as the benefits of owning a PV system, but understandably in the current climate are reluctant to part with their savings or capital they may have invested elsewhere. SolarSense will allow people to retain their capital, but at the same time allow them to invest in another financial-gaining product with no upfront cost. We hope this is the start of mainstream lending against a proven renewable technology that will be an integral part of almost every household in years to come. The returns on this product makes sense; hence the name SolarSense!”
In addition to a positive credit rating, potential customers’ homes must be energy efficient up to band D and have a solid and integral roof on which to install the solar PV panels prior to gaining entry into the FIT system. Both of these services are provided as part of the package on offer from Salop Energy.
