Solar power has been beckoning to an increasing number of households and businesses every year in Australia. However, the obvious environmental and monetary perks notwithstanding, a major hindrance that most potential users face is the cost. A good 6.6kW solar panel system can set you back by $4,000 which is no significant amount. While many Australian states offer rebates and incentives, it is still a considerable investment.
In response to that, the buy-now-pay-later model has come to the aid of many. It offers users an option to purchase the solar panel system now and start paying off in the future when you're profiting from the benefits already. This option is available for all types of solar systems, including the 10kW solar system.
Is this option ideal? Here's everything you need to know about the buy-now-pay-later model.
What does this mean?
It is essentially a finance option, a kind of interest-free loan option that enables you to install your solar panel system at zero down payment. Then, you start paying it off in instalments, when the system has already begun to prove its worth.
One clear advantage of this finance model is that you can purchase and start benefiting from your solar power system right away, without having to pay a single dollar upfront.
Another benefit you might not know about is that this loan option has comparatively lower eligibility criteria, as opposed o a personal or bank loan. So your poor credit score might not be as big of a hurdle here.
Is there a catch?
One common downside to this is that a majority of such loans are often misleading. While it may be labelled 'interest-free', retailers may have already incorporated such interest to be recovered in the cost of the system itself, cranking up the price by 20-25%, in which case, you might end up shelling out considerably more than had you decided to go through any other financing option.
Additionally, you may find that interest-free loans come with shorter repayment windows, which could mean larger instalments for you.
New policies for safeguarding customers
Don't let this deter you just yet. The ACCC announced a new code to protect consumers against such immoral business practices and unacceptable quality of services. The purpose is to discourage retailers from employing immoral tactics, making tall claims, showing inefficiency in handling customer complaints.
This code, introduced in December 2019, is currently being reviewed.
This decision is not a black-and-white one. It has several implications. Despite the ACCC's customer code, this might not necessarily be the best choice for you.
Weigh out the pros and cons clearly, and calculate your monthly instalments before you decide to buy a solar panel system and pay later.
Our solar experts will be happy to help should you have any questions. Contact Us at 1300 867 328