Traditionally, homeowners interested in solar have had two options: purchase a system outright and benefit from the feed-in tariff scheme or apply for a ‘free solar’ scheme and benefit solely from the free electricity. London-based Engensa is hoping to provide one more option, its newly-launched SolarLoan.

As reported in May, the premise of the SolarLoan is that homeowners take out an unsecured dedicated consumer loan to cover the cost of a solar installation, homeowners then ‘Pay-as-you-Save’ for the installed solar system. Importantly, recipients will still receive the feed-in tariff which Engensa estimates should cover the majority of all repayments.

Under the scheme, the homeowner will own the system outright, as such; it does not require mortgage consent. Engensa’s SolorLoan also allows customers to design a bespoke system for their property.

The home energy company are confident that, even at the new August FiT rate of 16p/kWh, recipients will generate more in savings and FiT payments than their loan repayments from day one. Engensa estimates that on average, the 7.9 percent APR loan should be paid back after 10 years, allowing owners to enjoy the benefits of the feed-in tariff for another decade.  

Engensa has partnered with Hitachi Finance to offer its SolarLoan, which will be rolled-out to all homeowners south of Birmingham from August 1, and nationwide from October 1.