Aussies are keener on installing solar panels, but how are they paying for them?

For many Aussies, having solar panels installed typically meant lower energy bills

But according to a recent survey by SolarQuotes, more Aussies are becoming increasingly aware of their carbon footprint, due to the recent bushfires and, as a result, are making the switch to solar. 

The solar comparison site found that in January, buyer activity spiked by 17% compared to the previous year, while February was even busier with a 26% year-on-year increase. 

The survey also revealed that more than half (65%) of Aussies were considering installing solar panels purely for environmental reasons, the remaining 35% said the choice was financially driven. 

“What the installers are saying to me is they usually see a dip after Christmas, and they haven’t really seen that dip yet. They’ve been starting back after the break flat-out,” said SolarQuotes Founder, Finn Peacock. 

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But while switching to solar can both benefit the environment and your electricity bills, installing solar panels doesn't come cheap. 

According to the SolarQuotes website, a 6kWh system can cost anywhere between $5,000 - $9,000, leading many Aussies to consider alternative financing options, like a green personal loan

“Unlike a regular personal loan, green personal loans are specifically designed to be used on eco-friendly purchases, like solar panels or electric cars,” said Mozo Director, Kirsty Lamont. 

“And as a reward for making an environmentally friendly purchase, these loans typically come with lower interest rates, which could potentially save you hundreds in interest, depending on the size of your loan.” 

With that in mind, we decided to put green loans to the test using our personal loan repayment calculator

At the moment, there are eight green personal loans in the Mozo database and the average green personal loan rate currently sits at 7.43%. 

So let’s say you decided to borrow $9,000 to be repaid over three years with the average unsecured personal loan rate in the Mozo database of 10.92%. Over the life of the loan, you’d pay a total of $1,595 in interest. 

But if you chose to take out a green personal loan with the average 7.43% rate, your total interest paid would drop to $1,068 - a difference of $527. 

And according to SunWiz Managing Director, Warwick Johnston, despite the upfront cost, the return on on a solar investment can speak for itself. 

“For a system that has a lifespan of 25 years it’ll pay for itself five times over the lifespan,” he said. 

“[Solar panels are] at the point where they’re producing more energy than they need realistically, but there may come a time in 10 years where people get an electric vehicle and they want to recharge it for $0.”

So if you’d like to take your first step toward doing your bit for the environment, head on over to our personal loan comparison tool

Compare personal loans - last updated 20 May 2022

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.to 19.09% p.a.
    6.14% p.a.to 19.99% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,832.61 including fees.

    Details
  • Home Improvement Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.
    5.96% p.a.based on $30,000
    over 5 years

    Handypay offers flexible home improvement loans for Excellent Credit or better. Handypay is a specialist home improvement plan provider and offers loans up to $75,000.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $34,840.18 including fees.

    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.45% p.a.to 17.45% p.a.
    7.29% p.a.to 17.86% p.a.based on $30,000
    over 5 years

    Wisr offers personal loans for any worthwhile purpose, tailored to your credit score to ensure you’re getting a fair deal. Plus, no ongoing or early exit fees. Loans from $5,000 to $79,000. Terms of either 3, 5 or 7 years. $595 establishment fee. Eligibility criteria applies.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.45% would cost $35,771.93 including fees.

    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.