Australian firm believes mortgages should cover solar panels and battery storage

There’s nothing stopping home buyers from asking banks to include solar installation in the mortgage.

  • Article Written/Contributed by
  • Energy Matters

A start-up mortgage broker is pushing for major lenders to bundle home loans with finance for solar panel and battery storage installation.

Digital mortgage service Uno Home Loans said the move would boost property values. CEO Vincent Turner said banks currently see solar and batteries as distinct from home buying.

“There’s nothing stopping home buyers from asking banks to include solar installation in the mortgage,” he said.



“It’s just that banks won’t treat it any differently to you going and buying a new plasma TV or a jet ski. Banks view it as an expense, rather than as something that potentially increases the value of a property.”

High energy prices and low-interest rates mean new home owners can save through solar panel and battery storage installation.

Uno calculated the costs using NSW feed-in tariffs and energy costs, plus current record low-interest rates. They concluded that a homeowner with a $600,000 mortgage who borrowed $16,544 to install solar and storage would be more than $1,800 better off each year.

“Our argument is that lenders should treat solar differently, given it adds value to the home and improves the cash flow,” Mr. Turner said. “This is how negative gearing is treated, for example.

“This has come about because we’ve reached a tipping point of high energy costs combined with low-interest rates,” Mr. Turner told One Step Off The Grid this week.
“Solar now makes sense financially even for those people who need to borrow to fund the installation. Solar and storage mean the cash flow of house will be better. So why wouldn’t they factor that in?”

Mr. Turner described solar installation as “home improvement” for home buyers. But there is a negative side to increase the size of the mortgage that could put off some buyers.

“People who are already at an 80 per cent Loan Value Ratio; that is, they have 80 per cent of their property’s value against a mortgage, might be hesitant to add the cost of solar installation to a mortgage because they’ll be subject to mortgage insurance.”

More Stories From Around the Web:

  1. using a house mortgage to finance a solar roof system works. but we should look at other revenues as well. if we bundle the EV cars solar roof with battery system will be a better option.
    under this program customers will reduce power bill, eliminate transportation costs. the main benefits are ev car and solar system obtained at no upfront costs.

Leave a Reply

Your email address will not be published. Required fields are marked *

What to Read Next:

Canada needs to boost its solar potential

Last year confirmed what many within the renewable energy sector have known: Renewable energy, specifically solar, is growing at an...

Game-changer breakthrough for organic solar cells

In an advance that could push cheap, ubiquitous solar power closer to reality, University of Michigan researchers have found a...

Is a diverse workforce the way forward for solar?

The Solar Foundation’s 2017 U.S. Solar Industry Diversity Study was released last month, causing a stir among solar workers and...

DOE discovery could lead to better batteries

A collaboration led by scientists at the U.S. Department of Energy's (DOE) Brookhaven National Laboratory has observed an unexpected phenomenon...

How do extreme weather conditions affect solar efficiency?

North America is experiencing one of its coldest spells in recent years, with temperatures dropping to -20F(-29C). And the temperatures...