We conducted our second, bi-annual Australian Consumer Solar Survey back in February of this year and were surprised by the sentiment towards consumers purchasing solar systems from their current energy providers.
37.45% of respondents stated that they would not purchase a solar system from their energy retailer. A further 30% were unsure.
Here’s a breakdown of why:
- I don’t like them – 4.04%
- I wouldn’t trust them – 20.38%
- They don’t have expertise in this area – 9.79%
- I’d rather support local installers or small business – 40.06%
- Other – 25.73%
Taking all those reasons in to consideration, why is it that many customers are still willing to align themselves, contractually, with their current electricity provider? Is it convenience? Is it laziness? Is it a lack of education/information?
Maybe.
Mostly, we think that it’s due to the enticing offers of $0 down and $0 % interests [for a limited period].
In the current financial climate with an average Australian pay rise sitting at 0.5% and the average increase in electricity prices at 4.76%, that’s a very shiny and pretty offer.
But you might want to pause and ask yourself “Why is my electricity provider, now trying to convert me to solar?â€
Alas, all that glitters is not golden.
Many of these offers are straight up credit cards with major banks, so the “loan†is not necessarily for the exact amount, but a rounded up line of credit. So, a consumer could easily be tempted to spend the balance of the credit during this payback period.
The interest rate after 5-year period of 0% interest is applied at the cash advance rate, currently sitting at 25.99%. Oh, there is also an annual fee charged, which can range from $59 to $119.
Additionally, these will come with few system options when selecting panels, an inverter and possibly a battery.
Each vendor will have their own sets of lending criteria, terms and conditions, fees and charges that will apply.
Again, this is from one vendor. With nothing to compare it to, $0 down and $0 interest might seem like a great option, even if it is from an entity with a not-so-great trust score.
These are all problems, which are easily solved.
Compare the market.
Get multiple quotes from multiple vendors, who offer a variety of [top tier] products, with acceptable warranties at competitive prices.
You might even find that, after the count the current government rebate of up to $4826*, you might not need to finance.
Then again, you might discover that your energy provider is the best option for you, but at least you will have done your due diligence to ensure that you made the best decision for your household.
Let us help you make that decision by getting 3 Free Quotes, from local suppliers.