Standard Bank in ooba Solar loans collaboration

The rate of solar adoption in South Africa is on the rise, but accessing funding for solar systems and panel installations continues to be a challenge for many.

This has led to a collaboration between Standard Bank and ooba Solar, a subsidiary of the ooba Group, that aims to enhance accessibility to affordable home solar solutions for new and existing homeowners.

Dominique dHotman, head of ooba Solar, said new home loan customers will benefit from an automatic assessment on their applications, which, if successful, will allow them to access an additional 20% bond registration amount “for use on acknowledged home improvement projects such as solar installations”.

He adds that existing home loan customers will also benefit as the partnership will assist those seeking financing options to make the transition by leveraging access bonds, readvances and additional loans.

Standard Bank was the first bank to introduce residential offerings based on the government’s Energy Bounce-Back Loan Scheme.

“Developing flexible financing solutions is essential to making home solar solutions accessible and affordable to more South African households,” says Toni Anderson, head of home services at Standard Bank.

Standard Bank’s solar loans are offered to households at attractive terms, with personalised interest rates starting at prime plus 1% up to a maximum of prime plus 2.5%. This represents a significant discount on the average prime plus 7% offered on personal loans.

The loans have flexible repayment terms ranging from 12 months to five years, with no penalties for early settlement.

The bank points out that with this flexible repayment structure, families who maximise their use of solar power can use the savings on their electricity bills to expedite the repayment of their loans.

The solar loans are available to the general market, without the need to become a Standard Bank customer.