Own electricity from photovoltaics with a Online Personal loan

The energy transition means that the private expansion of renewable energies is booming more than ever in Germany. The reduction in the feed-in tariff for photovoltaic systems in April 2012 does not change this, either, because the installation of a solar system to generate electricity, whether as a roof system or open space system, is still a real money gift from the state thanks to high subsidies and low Online Personal loans.

Despite the reduction in the feed-in tariff, the private photovoltaic system is one of the fastest amortizing investments, especially as a small system, and is therefore almost a mandatory investment for property owners.

Solar systems are not (yet) cheap …

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Even if the mass production of photovoltaic systems keeps lowering the costs for your own solar system, the modules themselves and the installation are unfortunately not yet cheap. As a house builder or property owner, a square meter price of (depending on the region) around 200 – 250 dollars or 1,500 to 1,800 dollars per kWp (kiloWattpeak) must still be expected today.

As a rule of thumb, a family of 4 with average electricity consumption needs a photovoltaic system of 32 sqm for “self-sufficiency” (wants to cover its electricity costs with its own solar cell system), which costs around 6,000 to 8,000 dollars. If you want to make real money with your solar system by feeding it into the power grid, you have to expect significantly more costs.

With an average usable roof area of ​​110 sqm for a single-family house with a gable roof with a living space of 120 sqm, after deducting useless areas, costs of up to 16,000 dollars can be incurred for a complete expansion with a solar system.

Despite the high amortization rate thanks to the feed-in tariff – a roof solar system (depending on the location) paid for itself after an average of 11 – 14 years, but the remuneration is guaranteed for at least 20 years – the state promotes investment in a photovoltaic system also with low-interest Online Personal loans.

Advantages of a Good Credit photovoltaic loan

Advantages of a Good Credit photovoltaic loan

Favorable interest and repayment-free time

The advantage: Online Personal loans not only run for a very long time and are therefore not only cheap in terms of interest, so only 3.95% effective interest is due for a Good Credit solar loan, but can even be made repayment-free for up to 2 years. This is particularly interesting if you have to build yourself with a building loan, still have to make a high initial repayment and can use every financial freedom.

With a Good Credit loan for solar funding, almost no equity has to be provided – it is therefore 100% financing – but: only for the net portion! Since VAT is generally reimbursed, see below, the VAT due cannot be financed by Good Credit.

Another plus for Good Credit credit: If you choose a photovoltaic system to generate electricity, you will also become an “energy entrepreneur”, which means you can register a business and all the costs associated with installing and purchasing the system Deduct tax and reduce your profit (and thus your taxable income). This means that a solar system not only saves taxes but depending on your financial requirements, it can help you save even more taxes.

Pay attention to a tax refund – action necessary!

Pay attention to tax refund - action necessary!

In addition, the input tax (VAT), which was incurred in connection with the installation (solar modules, handicrafts), can also be reimbursed by the tax office as an entrepreneur. However, the money should not be immediately spent again, but either saved in order to give yourself some financial space, e.g. For example, to indirectly extend the 2-year repayment-free period vis-à-vis Good Credit until “you have to pay” or use it for special repayment of the building finance.

Important: Of course, there is only money back from the tax office if you take care of it! Because the tax office only requires a business registration for a solar system with a size of more than 30 square meters. In addition, the sales tax is only reimbursed if you oppose the small business regulation, which is exempt from sales tax (also for the tax office).

A disadvantage here is that a monthly sales tax pre-registration is required within the first 2 years – only then can you choose the period more generously if you had to pay less than 6136 dollars in taxes per year (which is the rule for roof systems). By the way, there is no need for extensive bookkeeping – a simple statement of income/expenditure in the tax return is sufficient.

Despite Good Credit credit, further funding is still possible

In addition to the Good Credit loan, other solar subsidies that do not have to be repaid can also be used. Of course, this means that the Good Credit loan can be made less high and therefore even cheaper – and the solar system pays off even faster!

But: depending on the funding, you should inquire in advance whether or not they are compatible with a Good Credit loan. Many, including state, grants are tied to the fact that no Good Credit loan is used.

Good Credit is a subordinated debtor

With a Good Credit loan for a solar system, Good Credit must also be entered as a debtor in the land register (which causes costs), but Good Credit is only a subordinated debtor there. Any existing loan agreements are usually not endangered or maybe more expensive – however, you should always consult the creditor bank beforehand.

Disadvantages of a Good Credit photovoltaic loan

Disadvantages of a Good Credit photovoltaic loan

Special repayment – problematic

However, a Good Credit loan for solar funding also has disadvantages – for a Good Credit loan, a special repayment during the fixed interest period is generally not possible, for the unscheduled repayment plus a prepayment penalty is due. A special repayment can only be made as part of follow-up financing once the fixed interest rate has expired, usually 10 years.

The lack of a special repayment is problematic if one should find out during the term that the repayment rate was chosen too carefully and one could have paid off more and the loan was, therefore, more expensive than necessary due to the longer term. By paying a prepayment penalty, unscheduled repayments are not particularly attractive.

Although an average annual repayment of 8% makes special repayments almost superfluous, most Good Credit customers set the lowest possible rate of 3 – 5%, also because of the cheap Good Credit loan, and prefer the generally more expensive bank loan for them Home finance serviced.

The only advantage: The annual interest costs, which of course are higher with a low repayment rate, can be brought in as a loss and thus reduce the taxable profit if you have registered business or have been classified as a business by the tax office.

Net funding and commitment interest

A Good Credit loan for renewable energies is only available as net financing since you can finally have the VAT refunded by the tax office (see above). This means that the VAT has to be interpreted until the refund (usually 2 – 3 weeks) or that a short-term loan has to be used.

A Good Credit loan is also not exempt from commitment interest! At around 0.25% per month, i.e. 3% per year, these are anything but low.

Good Credit loan or normal bank loan?

A Good Credit loan, especially a Good Credit loan for renewable energies, is often the cheapest way to finance a photovoltaic system – but a market comparison is still worthwhile! For example, many banks, especially regional banks, often offer slightly lower-interest loans on the same terms (repayment-free period, fixed interest rates), since they have to “pass-through” Online Personal loans, but they have no profit and only expenditure.

In addition, they often offer full financing, that is, including VAT, with the option of making a high special repayment right from the start (the “advanced” VAT) in order to reduce the credit costs, because, see above, the repayment of the loan by the photovoltaic system and the high feed-in tariff is usually more than secure, as well as the possibility of a special repayment. A precise comparison can be worthwhile here!