Is it worth borrowing against your mortgage to install solar?

The following example demonstrates a possible solar solution for those with a mortgage.

is-it-worth-borrowing-against-mortgage

Many Australians who are currently working from home are quickly noticing an increase in electricity usage. For those who have been considering installing home solar for a long time, now might be the best time to commit as a means to cope in this period of change.

However, there are many solar solutions available to customers. We wish to answer many questions with the following example of what solar could look like for you.

(Note: the following figures have been used for the purpose of financial modelling. If you want an accurate understanding of solar solutions and prices in your area, please contact a trusted LG solar installer).

Let’s say you choose to install a 6.6kW LG system at $10,000 and put it on your mortgage at 3%.

  • The cost for this borrowed money is $300 for the next 12 months.
  • A 6.6kW system will generally save households $1,700 a year (depending on your area). With more people at home, this could potentially save you even more.
  • This leaves you $1,400 to play with.

You could choose to put the $1,400 back in the mortgage to contribute to paying off the system, or you could use this money as disposable income across the next 12 months, and push back the payment of the system to a later date.

LG’s 25 year warranties should give you the peace of mind to not have to worry about pushing back the payment for 12 months. This still leaves you with 24 years to pay back your system. The result is that, each year, you’ll have less money leaving your pocket to go towards living expenses.

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