No automatic special loans available for solar roof panels in South Africa

South African homeowners will not be automatically granted special loans to purchase solar roof panels. Instead they will have to go through an assessment process before getting the loans… writes Godfrey Sigwela.

Consumers are also being encouraged to report any irregularities that might happen when dealing with a credit provider issuing loans to buy solar roof panels.

Already Massmart and First National Bank (FNB) have indicated that they will be giving out loans to assist those who want to buy solar roof panels.

However, the ‘boss’ controlling the issuing of loans – in the form of the National Credit Regulator (NCR) – remains concerned about these loans.

Responding from the NCR media office, Didi Sebothoma outlined how the NCR view these speedy flourishing loans:

“Massmart and FNB are registered credit providers, and we therefore expect them to comply with the provisions of the National Credit Act (NCA) when granting credit.

“If they are contravening the NCA, we encourage consumers to report such contravention to the NCR. The NCR will then take legal action.”

No load shedding loans

The NCR has also rejected the idea of having special load shedding loans. Sebothoma emphasised that there are no load shedding loans available at all.

He said:

“Consumers interested in buying solar panels can apply for credit in the normal cause from either FNB, Massmart or any other credit provider.

“Thereafter use the loaned money to purchase solar roof panels. In terms of the NCA, the credit provider must conduct an affordability assessment before granting credit to any applicant for credit.

“Based on the outcome of the affordability assessment, the consumer will either qualify for the credit or not. Where the credit provider fails to conduct an affordability assessment, that is seen as reckless credit extension.”

What happens if you can’t pay back the money

Hot debates amongst communities have started and people want to know what would happen if they were unable to pay back the loans.

According to the NCR, loans granted for the purchase of solar panel loans are treated like any other application for credit. The terms and conditions of credit agreements must be complied with irrespective of the items purchased.

Also if a consumer fails to make monthly payments as per the credit agreement, then the recovery of the amount due must take place in line with the provisions of the NCA.

The NCR has also stated that no special treatment has been given to any of the companies wanting to offer loans to purchase solar roof panels.

“There is no special treatment for credit providers offering solar panel loans or selling solar panels on credit.

“If they are offering solar panels on credit, they must be registered with the NCR as credit providers and comply with the provisions of the NCA,” added Sebothoma.

By Godfrey Sigwela