Engensa Debuts ‘Pay-as-You-Save’ Solar Loan

August 23rd, 2012 by Glenn Meyers

Paying for the upfront costs of renewable energy options is usually too high a hurdle to cross for many people interested in making the move to green energy.

Engensa may have an option for such people in the UK, however, according to a recent article in BusinessGreen. The solar specialist has officially launched an option that allows households to install solar panels with no upfront costs.

The offer, reported to be available to homeowners to the south of Birmingham from August 1, will be rolled out nationwide from October. It wiil provide households with an unsecured 10-year consumer loan worth up to £50,000 at an APR of 7.9 per cent.

UK solar panels on home via Shutterstock

The loan can be paid off at any time during its lifespan for no extra cost. Engensa says the loan is structured to ensure most homeowners generate savings as soon as the solar system is installed.

“Even at the new August feed-in tariff rate of 16p/kWh most families will make money,” the company said in a statement. “[They will be] generating more in savings and feed-in tariff payments than their loan repayments from day one and will receive the financial benefit in its entirety once the loan is paid off.”

An example put forward by the company suggests that a family purchasing a 4kWp solar PV system for £6,800 would have to make loan repayments totalling £9,755 at a rate of £81 a month. However, the system should generate 3,732 kWh of electricity a year delivering £702 through the feed-in tariff incentive scheme and £284 in savings on the property’s electricity bill, equating to a new income of £82 a month.

Keep up to date with all the hottest cleantech news by subscribing to our (free) cleantech newsletter, or keep an eye on sector-specific news by getting our (also free) solar energy newsletter, electric vehicle newsletter, or wind energy newsletter.

Tags: clean energy financing alternatives, Engensa, Engensa Debuts 'Pay-as-you-Save' Solar Loan, quickies, renewable energy options for households, solar financing, solar financing options, solar loans, UK, UK Clean Energy, uk solar energy, uk solar leasing, uk solar loans

About the Author

Glenn Meyers is a writer, producer, and director. Meyers was editor and site director of Green Building Elements, a contributing writer for CleanTechnica, and is founder of Green Streets MediaTrain, a communications connection and eLearning hub. As an independent producer, he's been involved in the development, production and distribution of television and distance learning programs for both the education industry and corporate sector. He also is an avid gardener and loves sustainable innovation.

brookehaughton

We all know that installing solar panels are costly, but what we have to think of the positive results it may give. By using solar panels, we can save our monthly electric bills and our environment will be free from pollution. We must be thankful for its good effect because it is really helpful. If you want to know more about solar panels, you can read this for more related blogs.
http://www.facebook.com/people/Stan-Stein/1756064509 Stan Stein

This is virtually how ALL people buy solar….even on a lease…..it’s ALL payment, output, difference, net savings…..but at the figures you listed, with that interest rate….at 10 years….there is NOT a $1 profit…because in a 12 month period, output will vary more than 20% in some months….so an output margin would have to be greater than $16 per month on this size system to net profit annually. Solar and wind are not a 365 day constant.
In many American states, there are energy certificates…..at interests rates over 5%, and terms less than 15 yrs…..they are the only income, unless the per watt installed price is below about $4…..and most dealers on the US are at about $5 per watt.
JontheD

This idea is really appealing. I’m in the UK, and the initial outlay is indeed holding me back. With the government guaranteeing the FiT for 20 years, and linking it with inflation etc. the income is calculable and guaranteed, and all tax free too. The loan companies needn’t worry too much and the customers can know that they’ll still be in for a decent amount of income and profit from going ahead with this, with it hopefully paying for itself right from the beginning. The loan company wins, and the home owner need only sacrifice a smallish part of their return, on something that pays for itself.

I hope this idea takes off, it’d be great if the government can get behind this in some way, in the UK and elsewhere.

People would be foolish NOT to get one.