Solar Loans

Blossom2528

EricMears wrote: »

There are so many things to which one might apply that principle ! However, if people stopped borrowing, modern society as we know it would probably collapse.

As for borrowing to invest, of course it's 'risky' but without an element of risk there would be no high returns. I don't in fact consider SPs to be that much of a risk. Rate of return is guaranteed for 25y, panels themself also guaranteed for 25y and even the inverters are guaranteed for 10y and even if they failed one day out of warranty, the ROI on a new inverter in 10 years time is very likely to be substantial.

Not a fan of borrowing, but agree that it's ok if the numbers add up. Is there really much difference between borrowing the money, or using your own, like you did from an ISA. After all it's only the rate that differs.
If Mart's numbers are good, and they usually are, then it looks like a no-brainer but entirely depends on the loan rate. Looks like 7% is pretty much the tipping point on those prices and incomes. But would I do it? I'm probably in the Ferdy camp, bit too cautious.

EricMears

Blossom2528 wrote: »

Is there really much difference between borrowing the money, or using your own

I didn't of course need to take out a loan but agree with Blossom2528 that - apart from the interest rate - there's no difference in principle between borrowing from a bank / B. Soc and borrowing from your own funds originally set aside for a different purpose.

It's a bit easier for me to make out a case for doing that when I only have to achieve more than 3.5% than it might be for someone needing to beat 7% to repay a commercial loan but the mathematical operation is exactly the same.