In Germany, ecology and environmental protection have long been more than just a concern of green politicians or nature-conscious marginalized groups. But saving electricity, separating garbage and using the subway instead of the car is not enough – homeowners who want to make their contribution to environmentally friendly energy use in Germany can do so, for example, using a photovoltaic system on their roof.
In an average single-family house, the purchase and installation of a solar power system costs an average of 9,000 USD. However, consumers do not have to laboriously save the entire capital for the plant for years: various public and private banks offer environmentally conscious consumers cheap loans for photovoltaic systems.
Finance the photovoltaic system with a cheap loan
Anyone who decides to finance the solar power system with a low-interest loan has the choice between public and private lenders: In addition to the state development bank Infra, there are various support programs from the state or the municipality and the photovoltaic loans from private banks. Consumers who choose financial support from a private bank can choose from different lenders. A credit comparison gives consumers a good overview of the current conditions of many different photovoltaic loans after entering the required loan amount and the desired term.
Similar to construction loans or real estate financing, private banks generally require credit security when granting photovoltaic loans. The bank uses this security as a “pledge” against a possible loan default. In contrast to construction finance, when a solar system loan is granted, the system itself is only deposited as security with the bank – as a rule, no entry is made in the land register for these loans.
Subsidized photovoltaic loan from the Infra banking group
Homeowners can also obtain alternative and particularly low-interest financing through the state credit institution for reconstruction, Infra-Bank for short. The development bank is currently granting the subsidized loan from an effective annual interest rate of only 1.41 percent.
According to the EEG regulation passed in 2009, part of the energy generated by the solar system has to be fed into the public power grid – with the remuneration of this power feed, owners of a solar power system can often pay the running costs for its maintenance and the repayment of the financing.