Solar systems are still enjoying great demand. But a modern and powerful photovoltaic system on the private roof costs money. Depending on the roof area, four to five-digit amounts have to be financed if your own money is insufficient. Banks offer special solar loans here. In order to finance the solar system as cheaply as possible, a comparison of different loans is essential.
The essentials in brief:
- A photovoltaic system is usually financed with a solar loan.
- The financing, which is often referred to as photovoltaic loan, is carried out 100% by the bank up to certain loan amounts.
- As a rule, the system or the income from the feed-in tariff is sufficient as collateral.
- The conditions vary depending on the bank and target group of the loan offers, whereby the special requirements and requirements must be observed.
- Both the interest and the acquisition and its ancillary costs are tax-deductible.
What is a solar loan anyway?
In practice, the solar loan to finance a photovoltaic system is often referred to as a photovoltaic loan. Many loans for solar systems are granted by the state credit institution for reconstruction (Fine Bank). However, some environmental banks also offer promotional loans. In addition to so-called eco-loans, these also have loan offers tailored to the financing of photovoltaic systems. But solar loans can also be classic installment loans from commercial or regional banks.
If the new solar system does not exceed a certain investment sum, it is usually fully financed by the bank. Then the plant itself or its future income from the feed-in tariff serves as security. Otherwise, the banks require the customary collateral like a land register entry.
Terms and conditions for a solar loan
An essential point before taking out a loan for solar systems are the terms and conditions required by the banks. In the case of solar credit, these depend on:
- Applicant: It makes a difference who makes the application for a solar loan. The conditions can be very different depending on your professional affiliation or target group. The banks particularly target the following:
- Private households
- Self-employed and freelancers
- nonprofit associations as well
- Operating companies
- private companies
- Companies with public shareholders
Amount of the loan amount: If, for example, a loan amount of more than 50,000 dollars has been requested for the solar loan, a land register entry is often required as security. Otherwise, financing without equity is entirely possible. Depending on the provider, maximum limits for the loan amounts are also set.
Installation location of the system: As a rule, the location for the system to be financed is that it must be installed in Germany. Individual lenders, if they only have regional business areas, then only finance the photovoltaic systems there or in individual federal states.
Properties and quality of the system: The Fine Bank development bank, for example, places detailed requirements on the quality and certain properties of the system. The solar modules used must be disposed of in a certain way at the end of their service life. The manufacturer has to guarantee that. It is also a condition that construction has not yet started. To this end, Fine Bank will make the photovoltaic loan repayment-free in the first three years of the term. This has the advantage that loan installments are only payable when the system generates the relevant income. In addition, all banks carefully check the properties and quality of the systems only before submitting offers from photovoltaic specialists. Ultimately, future earnings from the feed-in tariff also depend on this.
Tax deductibility of a solar loan
After the feed-in tariffs have dropped in recent years, an investment in a solar system has to be calculated a little more closely. The possibilities of being able to deduct these from tax allow loan-financed expenditure in photovoltaic systems to appear in an even better light. In principle, photovoltaic systems are tax deductible. These include:
- Costs of running the plant: This includes the interest on the loan for photovoltaics that can be deducted. Furthermore, all contributions to photovoltaic insurance and rented electricity meters can also be claimed.
- Acquisition costs as well as incidental acquisition costs: This includes, for example, the installation of the photovoltaic system and for the purchase of additional devices. They are amortized over the years of their useful life.
Solar credit: possible without equity?
If you want to finance a photovoltaic system, you will first have to ask yourself: Should the photovoltaic system be paid for by credit or – at least in part – by equity? In a low interest rate environment and due to the tax deductibility of the purchase of a photovoltaic system, there are also good reasons to use offers for a loan for your own solar system or photovoltaics. In any case, it is important to compare different loan offers with each other. This should include both special earmarked solar loans and conventional installment loans.
Tip: The most important criterion for a comparison of photovoltaic loans is above all the effective annual interest rate. However, the required collateral and the fixed interest period should also be carefully examined. If you want to find out quickly and start a free credit comparison, you can find a comparison calculator at Across Lender
A specialized solar loan or photovoltaic loan often results in more favorable terms than a normal installment loan because it is usually used as collateral
- the photovoltaic system to be financed applies, or
- the proceeds from the future feed-in tariff are assigned.
For this reason, a photovoltaic loan without equity can be possible and comparatively cheap.
Solar credit is interesting despite falling feed-in tariffs
Despite the recent drop in feed-in tariffs, a solar loan can contribute to a worthwhile investment. The low interest rate environment as well as the high financing rate of up to 100 percent by the banks can be an incentive even for private builders to leave their ecological “footprint” in their own home.
Nevertheless, offered solar loans like conventional installment loans should be carefully checked and compared. This is the only way to ultimately find the loan with the cheapest interest. Especially since the other conditions such as fixed interest rates and repayments can vary. Before borrowers take out a solar loan, they can use the free comparison calculator from Across Lender. Cheap installment loans can be found here within minutes.