Malaysia: Bank offering loans to buy solar panels

Bank offering loans to buy solar panels

PETALING JAYA: Homeowners who want their own source of renewable energy can now afford solar pho-tovoltaic (PV) panels in their homes – thanks to Alliance Bank Bhd’s Home Complete Plus Solar Panel Financing.

The bank is the first in the country to offer loans to those wanting to install solar panels in their homes.

Group chief executive officer Sng Seow Wah said customers only had to pay a downpayment of 10% of the entire cost of the panels, as the bank offered up to 90% financing for eligible applicants.

“We are extending a financing option to those who choose to integrate green technology into their homes.

“By introducing this solution, we assist our customers to participate in the green movement by managing usage of their utilities effectively,” he said.

Many have been put off from installing the panels due to high cost and difficulty in obtaining loans.

A typical five kilowatt (5kW) system in each home will cost at least RM50,000, which is beyond the reach of the average homeowner if financing is not provided.

The financing scheme was launched at the office of Sustainable Energy Development Authority (SEDA) in Putrajaya, which the bank is collaborating with.

Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili, who launched the scheme last week, hoped the initiative will spur organisations to promote the use of solar panels in residences.

He referred to the Feed-in Tariff mechanism installed in December 2011, which pays consumers monthly for energy sent back into the national power grid.

“As of April, the solar PV sector has had 1,297 applications approved by SEDA since the implementation.

“This translates into 1,079 individual rooftops in Malaysia and is a significant increase, compared to a little more than a 100 houses in 2011,” he said.

Homeowners who install solar panels could also potentially offset their monthly repayment of the facility using the amount earned through the Feed-in Tariff.