What’s a solar mortgage?
by Charlie Peverett in At home on 10.03.08
There’s been a lot more interest in ‘green’ mortgages over the last few years, with an increasing number of providers offering to make the purchase of your home a more environmentally-friendly business.
Many of the schemes simply involve carbon offset - typically planting trees on your behalf to soak up the equivalent of the carbon emissions of your home.
However, one of the most recent entrants to the market is Ulster Bank, whose Northern Ireland branch is offering something a little bit different.
With their solar mortgage, you pay half the typical variable interest rate on the loan for the first three years, if you install one of the solar power packages available through Solarcentury.
The options are photo-voltaic (PV) panels or roof tiles, costing upwards of £10,000 plus VAT (at a rate of 5%).
Depending on your location, the solar generators may provide up to half of your electricity needs, and will entitle you to an annual rebate under the Renewables Obligations Certificates scheme.
We haven’t done the sums yet, partly because the amount you stand to save through such schemes is highly dependent on the value of your mortgage. One thing’s for sure, though: deals like this will get more attractive if electricity prices go on increasing.
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