With electricity prices rising every year and load shedding still a reality, solar power has gone from a luxury to a necessity for many South African households. The upfront cost is the biggest barrier, but there are now several financing options that make solar affordable.
How Much Does a Solar System Cost?
| System Size | Best For | Cost (installed) | Monthly Saving |
|---|---|---|---|
| 3kW (no battery) | Daytime power, small home | R45,000 to R65,000 | R800 to R1,200 |
| 5kW + 5kWh battery | Medium home, basic backup | R120,000 to R160,000 | R1,500 to R2,500 |
| 8kW + 10kWh battery | Large home, full backup | R200,000 to R280,000 | R2,500 to R4,000 |
| 10kW+ commercial | Business/office | R300,000+ | R4,000+ |
Solar Financing Options
1. Bank Personal Loan
- Rate: Prime to prime +5% (depending on credit score)
- Term: 12 to 72 months
- Available from: Capitec, FNB, Absa, Nedbank, Standard Bank
- Pro: You own the system from day one
- Con: Higher monthly repayment than rental
2. FNB Solar Loan (Dedicated)
- FNB offers a specific solar finance product through the app
- Up to R500,000
- Competitive rates (often better than a personal loan)
- Apply directly on the FNB app under Home Services
3. Solar Rental / Power Purchase Agreement
- Companies like Hohm Energy, SolarAfrica, and Rubicon install the system for free
- You pay a fixed monthly fee (usually less than your current electricity bill)
- They own and maintain the system
- Contract is typically 10 to 20 years
- Pro: Zero upfront cost, immediate savings
- Con: You do not own the system, locked into a long contract
4. Home Loan Extension
Some banks allow you to add solar costs to your existing home loan. This gives you the lowest interest rate (prime minus up to 2%) but extends your bond. Ask your bank about a further advance or access bond for solar installation.
Tax Incentive for Solar (Expired)
The government previously offered a 25% tax rebate on solar PV panels (up to R15,000 per person), but this incentive expired on 29 February 2024 and is no longer available for new installations. Check the SARS website for any future incentives that may be announced. Even without the rebate, the electricity savings alone make solar a worthwhile investment for most households.
Payback Period
Most solar systems pay for themselves in 4 to 7 years through electricity savings. After that, you are generating essentially free power for the remaining 15 to 20 year lifespan of the panels.