A short guide to getting solar for your home

If you've decided to install solar, the first step is to determine the suitability of your roof for solar panel installation. It's also advisable to check with your local council regarding any approvals you may need and ask your electricity provider whether you'll be able to connect to the electricity network (also called the grid). 

Solar systems can either be connected to the grid or operate off-the-grid, which means they operate separately from the electricity network. If you install a solar energy system that's connected to the grid, it may be possible for you to get paid for the electricity you put back into the grid (also called a feed-in tariff). You should also check whether your electricity provider charges any extra fees to you for switching to solar. Another electricity company might offer cheaper rates or a higher feed-in tariff, and you may want to switch providers to save money.

The next important step is selecting which solar panels to buy and how to get them installed. It helps to compare quotes from various solar retailers and read product reviews online to get a good deal. However, be careful to only work with a solar retailer approved by the Clean Energy Council. Clean Energy Council accreditation is a must-have qualification for any solar retailer or installer. It means they have the necessary training to design and install solar systems while meeting all safety standards.

The amount you pay for getting a solar system installed depends on the size of the system you choose. It can be measured in how many kiloWatts (kW) are installed.

While selecting the size most suitable for your home, it's good to consider both your present and future energy needs, such as if you are planning to get an electric vehicle that will increase your energy consumption, so the system is useful for the longer term.

A 5kW solar system is generally considered sufficient to meet the average daily requirement of a small household. But you might want to invest in a bigger system if you can afford it, and your roof has enough space to accommodate it. A larger system can help cover any additional energy requirements in future and even earn you some money via feed-in tariffs. Some of the bigger systems include batteries as well, enabling you to continue using solar even when the sun is behind the clouds.

It's also worth checking the Australian Government's Clean Energy Regulator website to learn about the Small-scale Renewable Energy Scheme that creates a financial incentive for individuals and small businesses to install eligible small-scale renewable energy systems.

If you don't have enough savings to pay for a solar power system upfront, you may consider applying for a green loan, which is a special type of loan that lets you borrow money for various purposes the lender considers to be environment-friendly. 

Green loans typically offer lower interest rates and fees than personal loans. The loan term can range from one year to five years, which is a convenient time frame to return the money. An example is the CBA Green Loan that lets you borrow up to $20,000 to purchase and install various clean energy products, including solar panels and battery packs of specified size. 

Unfortunately, a green loan may not work for everyone because lenders generally have additional specifications regarding the products you may buy. Another alternative you have is applying for a personal loan, but you'll typically need an excellent credit score to get approved for one. The interest rate on a personal loan is likely to be higher than a green loan, but it doesn't limit your options by placing conditions regarding the size or capacity of the system you may buy. 

To avoid high interest rates, you could also consider using the equity in your home for borrowing money. 

Equity refers to the difference between your property's value and the amount outstanding on your mortgage. You can use this equity in your property as security to borrow money for installing a solar system or use it for any other purpose you want. You could also use your home equity by refinancing your home loan and increasing the size of your borrowing. 

Apart from these options offered by banks and other credit providers, some solar suppliers offer interest-free solar loans to help you cover the cost of your solar power system. However, it's advisable to understand all the costs associated with such a product as retailers are known to increase the quoted price to cover the expenses they incur by not charging interest to you. Generally, you may only want to consider this option if your credit score is low and you are unable to qualify for a loan from a financial institution.