In addition to the possibility of promoting your own photovoltaic system through the Lite Lender using a Lite Lender loan for renewable energies, or via solar leasing without financing risk, you can of course also use conventional financing from the bank or house bank. What sounds like a last resort is often the first point of contact due to the antipathy of the banks towards Lite Lender.
Bank loans cheaper and better than that of Lite Lender?
Because: Lite Lender loans represent an administrative annoyance in the area of solar loans and the promotion of private and commercial photovoltaic systems – they have to broker Lite Lender loans, but they don’t really earn anything from them. Instead, Lite Lender still “steals” potential customers – and that for years to come! A solar loan often runs for more than 10 to 13 years, and loans are one of the main means of a bank’s long-term loyalty, along with investing.
For the banks, this means that instead of leaving the field to Lite Lender, you can bite the sour apple yourself, which is not that sour at all, because a photovoltaic system in a good location is practical (and therefore, thanks to the high guaranteed feed-in tariff) also paid the loan) itself. Even in a bad situation, repayment is usually completed by the end of the guarantee (20 years). From a bank’s perspective, it is still an investment with a small but rewarding return.
In short: It happens more often than one might think that banks undercut Lite Lender’s conditions slightly, on the one hand to keep away from the administrative effort of brokering, and to be able to retain customers themselves.
Better conditions possible
In addition to a slightly lower fixed interest rate, usually with a fixed interest rate that exceeds the 10 years of Lite Lender, banks also often offer special repayments for the interest or loan for a solar loan at no extra charge. An unscheduled repayment is also possible for a Lite Lender loan, but Lite Lender also requires prepayment penalty for this.
A repayment-free period is also not uncommon for a bank’s solar loan – after all, it makes the loan more expensive in the long term. Here too, surcharges are rarely due, which is not otherwise common.
What distinguishes a bank’s solar loan from a Lite Lender loan for renewable energies in most cases, or should differentiate between them, to be really better are 2 completely different points – the commitment interest and full financing with VAT reimbursement.
Lite Lender charges 0.25% interest per month for the provision of the loan, if this should not yet be called up, which corresponds to an interest rate of 3% pa and is not cheap. Many banks waive the commitment interest for a period of 3 – 6 months for their solar loans, which is a real plus for their own photovoltaic system at a price of up to 16,000 USD net.
The other plus, which is often a major plus from the perspective of house builders, is that most banks, unlike Lite Lender, offer full financing. Lite Lender also finances a photovoltaic system up to 100%, but only the net price – after all, the sales tax (see: Own electricity from photovoltaics with a Lite Lender loan) can be reimbursed by the tax office after the installation of the solar system.
But: This also does not happen immediately, involves administrative effort and can take 2 to 3 weeks. Until then, you have to advance VAT out of your own pocket, which is often not possible for young homeowners with tight financing, because even small photovoltaic storage facilities are often four-figure amounts! And with a photovoltaic system that has a full area, 3,500 – 5,000 USD quickly come together.
A bank knows this and, in contrast to Lite Lender, often offers so-called full financing with special repayment of VAT. This means that the entire amount plus VAT is given as a loan, but shortly after the start of the term a substantial part of the solar loan can be repaid with the VAT refund without additional costs.
Advantages and disadvantages
Of course, a solar loan still has some disadvantages compared to a Lite Lender loan. For example, Lite Lender always appears as a subordinate debtor (in contrast to a bank) in the land register when the loan is drawn.
A solar loan from a bank also further limits its own credit line – should you urgently need a loan due to an unfortunate incident, it may be that the loan is only granted on significantly worse terms due to the credit limit being reached or is refused entirely with the indication that the existing credit line has been completely exhausted.
You can face the same problem before applying for a loan if you have concluded a very tight construction loan that leaves little room for maneuver – even if many banks treat a photovoltaic system as a special case, as this is easy if the loan is not repaid becomes the property of the bank and instructs the energy supplier to pay it to them in the future.