0% Interest green loans

Thinking of adding a brand new rooftop solar system, home battery or even an electric vehicle charger to your place but not sure how to make the expense a bit more manageable? A zero-interest green loan can be a great way to keep costs down and help you make the transition to home renewables. So what is a zero-interest payment plan and is it right for you? 

A Zero-Interest Payment Plan (ZIPP) is an interest-free loan for eligible renewable energy projects that are purchased through an accredited installation partner. There are currently a few Australian lenders offering ZIPPs, however, their fees, loan terms, and T&Cs will vary. 

How do ZIPPs work?

A ZIPP can help you install a renewable energy system at home without breaking the bank. They function a little differently from traditional loans, so let’s check out the differences.

 A basic loan is made of up three key parts: 

• Principal: This is the amount borrowed. 
• Interest rate: Interest is the cost of borrowing from a lender and is charged as a percentage of the principal. You’ll see it charged either as a fixed rate (the rate is locked in for the life of the loan) or a variable rate (the rate might fluctuate up and down with the market).  
• Fees: This is another cost of borrowing funds and each lender's fees will vary, but some common fee types are: monthly fees, establishment fees, late or missed payments, and early exit fees. 

You won’t be charged any interest with a Zero-Interest Payment Program of course, but you can still expect to pay a combination of fees — the exact amount will depend on the lender you choose. 

Why should I go with a Zero-Interest Payment Plan?

A ZIPP is an easy and transparent way of accessing renewable finance. You’ll have certainty about exactly how much your loan will cost you, and with rates still on the rise, you won’t be exposed to a skyrocketing interest rate.

It also can give you greater flexibility and control over your bills. Often what you purchase with your green loan can help you save money on your energy bills. A great way to use those savings is to pay back your loan early. If you think this sounds like something you’d like to do, make sure you choose a lender who won’t charge you an early repayment fee.

How much can I borrow?

The amount you can borrow with a Zero-Interest Payment Plan will vary from lender to lender. However, with Plenti’s ZIPP, you can borrow up to $30,000 and have 1-10 years to repay your loan (10 year loans require a battery to be installed).

Of course, what you purchase and install needs to be eligible for a green loan and must meet strict standards of efficiency and performance. 

Who is eligible for a Zero-Interest Payment Plan?

The great news about a ZIPP is that it’s generally an unsecured loan, so you don’t need to use an asset (like your house) as security. Lenders still need to follow their responsible lending obligations and will set eligibility criteria such as (but not limited to):

• Be over 18 years old
• Be an Australian citizen or permanent resident
• Have a valid driver's licence, Medicare Card or Australian Passport
• Own (or be purchasing) their own home
• Have a clear credit file
• Receiving a regular income

Further eligibility requirements may apply.