Solar loans - too good to be true?

Barrysteele

Just got my latest e-mail from uSwitch suggesting a solar loan from Engensa. Never heard of them but basically they sort out the full installation at £0 down payment, then you pay them back over 10-15 years via the income generated by the export tariff.

Mmm. Sounds like a free install but then probably limited/no electricity bill reduction for the period you have to payoff the loan? But I suppose it adds value (in a small way) to the property.

Anyone got thoughts on this? Doesn't feel right to me.

SailorSam

My first thoughts are ........ is this Spam ?
Are you Mr Engensa trying to promote your own company.

Barrysteele

Oh dear. I was hoping for a more educated response from the forum. No I am not. I am a consumer and a slightly apprehensive one when it comes to the solar revolution. I invest in various things but this one doesn't seem to add up for me.

SailorSam

It sounds like the rent-a-roof scheme. The pros and cons have been discussed here in the past. If you think it's a good idea and want to go ahead i'd suggest you used a company that you've heard of rather than an unknown who possibly you can't trust.

Barrysteele

Fair point but this was a company mentioned by uSwitch in their latest newsletter. I need to keep digging I think.
Would be good if MSE could investigate and publish some thoughts though as this seems to be a new vehicle for funding solar. Anything with an APR mean consumers will get stitched up somewhere down the years though!

rogerblack

Someone needs to read and understand the terms and conditions.
Payback periods in some cases of well placed systems can be only 7 years.
If the loan is not tied in some way to the generation amount, poorly performing systems could end up paying a lot more to the company.

Depending on how this is done, it may be a way of the company getting round the lower FIT for multi-roof schemes.
If you own the solar array, then you get more FIT.
Which you can then pass on to them.

The terms and conditions may mean this is an excellent offer, or a hideous one.

Barrysteele

Some good thoughts there Roger. Many thanks. I just hope people can easily assess the options before taking out any loan and losing cash in the long run. Hopefully there is some regulation on the terms and conditions as well!

grahamc2003

Barrysteele wrote: »

Fair point but this was a company mentioned by uSwitch in their latest newsletter. I need to keep digging I think.
Would be good if MSE could investigate and publish some thoughts though as this seems to be a new vehicle for funding solar. Anything with an APR mean consumers will get stitched up somewhere down the years though!

I think I read that differently to you. My opinion is Uswitch 'mention' that particular company because Uswitch get the biggest rake-off from them should you sign up.

If the loan is secured on your property, far from putting the property value up, it will put it down, imv.

Pincher

Got a cold call last week. Wanted to alert me to something called the FIT. :eek:

I said right away that I don't have a south facing roof, and she said that they "don't rely on sunlight". Their system is "German and uses daylight instead", so they work without needing to face south. :rotfl:
I know about diffused light, but it's just not worth carrying on with the farce.

good_advice

Barry, it sounds very much like "the green deal" coming out in January with the golden rule.

I would not like something stuck on my roof for 15 years for nothing. Not even free electric. No not me.

Barrysteele

I am getting the feeling this is not the best vehicle for getting into solar. How go we raise awareness on MSE website so people with limited funds don't fall for it? These companies are basically using your roof space to make profit for themselves. All while stitching you up with a loan and various T's & C's with your name on it. Poor.