Information about solar credit
In order to maintain independence from the electricity giants or to conserve resources, it is advisable to install a photovoltaic system on your own property. The energy obtained is either used for own purposes or fed into the public grid, whereby the good feed-in tariffs can be used.
Owing to the not inconsiderable acquisition costs, home owners have access to government funding programs within the framework of the »Renewable Energy Law« (EEG). The programs are intended for individuals, freelancers, entrepreneurs and nonprofits.
What is a solar loan?
A solar loan, also called a photovoltaic loan, is a type of financing for corresponding systems on apartment buildings and homes. The application for the loan takes the form of a normal installment loan from a savings bank. A major difference to other loans is that a solar loan is 100 percent financed by the financial institutions. The guaranteed feed-in tariffs serve as security up to a corresponding loan amount. If the financing exceeds the amount of 50,000 USD, a land register entry is required for security.
Financing through Good Bank
Financing through Good Bank depends on certain terms and conditions.
Government funding has been available since 2013 when it is also planned to install a compatible solar power storage system. This applies to the new construction of such a system and for the retrofitting of an existing system. The measure promotes self-consumption and in the long term introduces the electricity market. Since May 1st, 2013, a battery storage support program has been available that is linked to various regulations regarding the battery management system.
The alignment of the photovoltaic system and the inverter for feeding into the public grid play an important role in terms of economy and feed-in remuneration. If there are eliminable shading options, or if the roof pitch is too great, the energy generation is not considered profitable.
Installed roof systems receive more funding compared to planned outdoor systems. It is also important whether it is a grid-operated photovoltaic system or an island system. Funding is for a single storage system. In order to promote self-consumption, the system may surrender a maximum of 60 percent. The systems are funded when the system is installed in Germany.
Good Bank supports the private house bank. The house bank carries out the credit check and also decides on the registration of a land charge in the land register. Depending on the established creditworthiness, the house bank determines the interest rate. The market development plays an important role in this context. The term is fixed for a period of five, ten or 20 years.
The application for credit before the start of the construction project is of immense importance.
The advantages of Good Bank financing
With its funding program 274 – Renewable Energy Standard – Good Bank-Bank offers favorable conditions. It is positive that the financing is entirely without equity. In the first one to three years, the loan is free of repayment. A loan of up to ten million USD can be taken out. If retrofitting is desired, the Federal Environment Ministry grants repayment subsidies as part of the battery storage support program.
Further financing options
Solar loans independent of Good Bank are rare. For this reason, it is advisable to compare Good Bank’s offers with those of its own bank. A solar loan offer with favorable terms can also be obtained from credit intermediaries and building societies. The term solar credit is unusual for building societies. It is a combination of classic home loan and interest payment loan.
The credit intermediaries offer cheap energy loans through building societies. The way of obtaining a loan in this way is in most cases more straightforward and faster than the often extremely bureaucratic route via the house bank.
Interest rate savings and overall more flexible conditions, depending on the offer, can be achieved. The last alternatives are credit exchanges.