Malaysian bank offers loans for home solar panels

Alliance Bank Berhad becomes the first to offer this loan.

Customers availing of Alliance Bank’s “Home Complete Plus Solar Panel Financing” have to make a down payment equal to 10% of the entire cost of the panels, while the bank will provide up to 90% financing for eligible applicants.

A typical five kilowatt system in each home will cost at least US$15,800, 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 or SEDA in Putrajaya, which is the bank’s partner in the loan scheme.

SEDA said that as of April, it had approved 1,297 applications in the solar PV sector. 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.

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

“By introducing this solution, we assist our customers to participate in the green movement by managing usage of their utilities effectively,” said Group Chief Executive Officer Sng Seow Wah.