A solar subscription is similar to a solar loan in the sense that both are forms of residential solar financing. However the similarity pretty much stops there. With a solar subscription, you are renting your system from a third party owner. You pay the owner a fixed monthly payment for the full term of the rental, which is typically 3-5 years. Instead of paying your utility company for energy, you would now be paying the solar company for using the panels.
Installing a Solar Solution can be a daunting task. Especially when you look at the capital expense that you need to lay down. This online guide covers how to finance your residential solar system, a crucial step in determining if solar panels are worth it for your home.
At Versofy we are committed to getting our clients as close to a level of Solar Parity as possible. What this means is that we will strive to get you to a point where the total cost of the electricity you consume is less or equal to the rate you would purchase from the national electricity grid. Up until recently, the cost of Solar PV equipment prohibited this from being possible. However, with the costs of Solar PV continuously decreasing, coupled with the fact that the price of electricity from Eskom is set to continue to increase, we have finally reached a point where electricity production and electricity security are now available at a price cheaper than the existing alternative.
Versofy vs Bond Funding
On the surface, it may seem that funding your solar solution using an existing bond is a better option. However, it is advised that you first do your own calculations to determine what solution is right for you. The below table indicates the cost of financing through your bond at Prime vs through Versofy at Prime plus.
R130 000 Versofy Subscription
R130 000 Bond Funding
*Example Interest Rate – Your interest rate may differ
Getting Your Property Solar Ready
Each property is unique, and therefore each installation is specifically designed. Although installing a Solar System is a great way to reduce your reliance on Eskom, installing a system alone won’t necessarily save you on your electricity bill. In order to get the maximum out of your Solar PV system, one needs to optimise their household consumption as much as possible. This may require additional investment that is not covered in the scope of your proposal.
This may also require a change in behaviour in order to make use of the solar energy produced by your system. Simple things such as only running your pool pump during the day when solar provided energy is at its peak is a simple yet effective way to optimise your return on investment.
Paul has a current electricity bill of R3,500. By installing a system we believe that we can offer him a 50% saving on his bill = R1,750. His rental repayments will be R2,725.39. Paul is therefore paying an additional R975 per month to have a solar system on his roof. After 5 years he is able to own the system or renew the rental. The below graph illustrates his savings over time.
- A design & quote of your system to determine the size of your rental agreement
- A subscription application
- 3 month bank statements
- Proof of ID
- Proof of Residence
- Min. monthly salary of R40 000
How It Works
Select a package
Choose a package based on your electricity bill and we will be able to give you an estimated solar subscription cost. You can also set up a call with our team to go through how everything works and get an understanding of your system requirements.
Fill out our quick and easy online application. We will confirm if you are eligible for one of our solar products. P.S. If you want a solution for your business, we will send through the business application instead. Disclaimer: It takes a bit longer.
Once you are pre-approved we will set up a site inspection of your property with one of our verified Solar Installation Partners. They will come to your property to make sure everything is covered and your installation will run smoothly.
Once the site inspections are done, we will send you your proposal. Take a look and if you are happy to go ahead we will send you the contract for digital signature.
Sign on the dotted line and we will book your installation for a date that suits you.
Our team of expert installers will have you up and running in no time. All installation, labour and CoC are included so you have peace of mind.
Subscription vs Owning
Cash is king! If you have enough saved up for this significant upfront purchase, buying solar panels outright with cash will provide you with the best savings and return on investment. It’s the best and only kind of interest-free solar power. Your solar system will be producing “free” energy and saving you money from the day it’s turned on. The typical payback period for rooftop solar in the South Africa is 5-7 years, depending on the size of your system and the kind of solar panels and other equipment you selected.
However, the majority of people don’t have the upfront capital needed lying around. Or, they prefer to put that money to use somewhere else. Our Solar subscriptions make it extremely easy to get the benefits of solar energy without the associated cash outlay.
- Low upfront costs
- Zero maintenance
- Unrivalled support
- Monthly fees offset by savings
- Easy upgrades
- Manage your cashflow
- Keep your liquid cash for something else
Yes, you are able to terminate your subscription during the term. You will however be charged an early settlement fee as laid out in your agreement.
You are able to transfer your rental agreement to your new property. You will be liable to the installer for the cost associated with removal and re-installation process. Your rental terms will remain the same.
Your installer is responsible for the maintenance of the system. They will conduct bi-annual inspections of the system to ensure it is running optimally. If you are not happy with the installer Versofy will provide you with an alternative installer to monitor and maintain your system.
You have 2 options.
- You are able to transfer your rental agreement into the new owners name. The transfer is further subject to the new owner signing the rental agreement on the same terms and conditions as agreed and concluded with the original client.
- You can request an early settlement amount. We suggest adding this amount to the purchase price of your home so the new owner effectively takes ownership of the system.
Yes, each product will be protected under a performance warranty as laid out in your T’s & C’s
Yes, the interest rate is linked to the Prime lending rate. This means that your installment price will reduce/increase depending on the fluctuation of Prime.
Your installer will be your primary source of contact for any system-related issues. However, should the installer not be available you are able to contact the Versofy team who will deploy a team to assist you.
The optimisation and effectiveness of the system comes down to your consumption behaviour. The installer will discuss your system requirements with you during the needs analysis phase of the process. One of the main advantages of solar is that it is built in a modular fashion. Meaning that you are able to add both panels and storage (batteries) to your system in order to fit your requirements.