FNB Solar Loans
Solar Energy Loan - Go green with FNB!
The solar energy loan will be offered to all natural persons that are RSA residents i.e. individual, joint and multiple applicants. Alternative energy solutions are an efficient option for many homes across South Africa by reducing their carbon footprint, making homes more sustainable and having access to uninterrupted power in addition to lowering energy costs and increasing the resale value of your property.
From 6 December 2022, FNB customers will be able to apply for a solar energy loan with their new or existing home loan and could qualify for a loan of up to 15% of their property value to fund the installation of a solar energy system. The solar energy loan amount will be added to the customer’s bond amount and registered as one total loan amount and customers will benefit from the same interest rate and term on their home loan.
Solar energy loan process
Home loan application
Customer applies for solar energy loan
as part of their home loan application.
Approval in Principle (AIP)
The approved solar energy loan amount
is displayed separately to the approved
property loan amount in the AIP document.
Retained Solar energy loan funds
The solar energy loan amount will be held as a retention amount and paid subsequent to the pay-out of the loan to the seller once the relevant documents are received from customer.
Payment of solar energy loan
Within 6 months of bond registration/ funds being made available for use, customer submits completed solar energy loan progress payment request form and invoice/quote from solar supplier to pay the deposit to the supplier.
Final payment for solar installation
Post installation of solar solution submit solar energy loan final payment request form with updated supplier invoice indicating final balance due and electrical certificate of compliance for the final payment to the supplier.
Unutilised solar energy loan
If there is an unutilised solar energy loan amount post 6 months of bond registration/funds being made available for use, the funds will be held as a retention amount and can be accessed after a credit assessment and property valuation.
How solar energy loan will work
• The solar energy loan amount is limited to a minimum of R50,000 and maximum 15% of property purchase price.
• (If property loan amount requested + solar energy loan amount in step A) / (Purchase Price + R200,000) is >/=100% LTV then cap the solar loan amount to R200,000
• If LTV is <100% then requested solar loan amount in step A must be allowed to proceed through the application process
Validation rule to be applied by Mortgage Originator
• The solar energy loan amount is limited to a minimum of R50,000 and maximum of 15% of Purchase Price
Changes/updates implemented for solar energy loan
• Updates to the mortgage originator application forms
- Inclusion of a solar checkbox indicator and solar energy loan amount field to capture the amount
• Information to be displayed on the AIP regarding solar energy loan
- Requested loan amount (Inclusive of solar energy loan amount)
- Total approved loan amount (Inclusive of solar energy loan amount)
- Approved property loan amount
- Approved solar energy loan amount
• The solar energy loan special condition will be reflected in the following documents for solar energy loan applications
- Approval in principle (AIP) document
- Final quote
- Mortgage lending agreement (MLA) document
- The solar energy loan special condition reads as follows:
“The customer has agreed to the Lender’s solar energy loan solution. The customer further undertakes to choose a solar energy solution from the Lenders proposed solar energy solution suppliers and undertakes to complete the installation process within a 6-month period after the bond has been registered and/or payout. The loan amount allocated to the solar energy solution will be a retention amount. The first draw down amount will be paid directly to the supplier chosen by the customer as a deposit amount upon receipt of a valid solar solution quotation/invoice and a completed progress payment request form and the final payment will be made to the supplier upon receipt of an electrical compliance certificate and a completed final payment request form from the customer.”
• The customers, who seek to use their future use funds for the purposes of installing solar, do not have to wait 6 months post bond registration and/or payout to access the funds. The Future Use special condition will be amended for customers who apply for future use and seek to use their future use funds for solar energy installation. The amended condition to reflect on the following documents
- Approval in principle (AIP) document
- Mortgage lending agreement (MLA) document
- Final credit quotation
• The total loan amount approved including the solar energy loan will appear as the principal debt on the agreement
• The property valuation will account for and be increased for the future installation of the solar
Documents required on application
• Normal credit application documents must be submitted as part of the home loan application
• Important to note
- For first bond/switch applications, the solar energy quote/invoice and Approval from trustees of Body Corporate or Managing Agent is optional at the application stage
Approved renewable energy providers
The bank has partnered with a panel of accredited renewable energy providers to offer customers an exclusive option to finance solar solutions as part of their home loan applications. Customers will also enjoy discounts of up to 20% off the retail price when purchasing from these approved suppliers or when purchasing from the eBucks Shop. These experts will help the customers assess their household energy needs, to tailor the solution to suit their pocket. Customers must use one of the following approved suppliers to avail of this solar energy loan. Documents required once solar energy loan is ready to be paid out
• To initiate payment to the chosen renewable energy supplier, customer should submit the following documents
- Invoice or quote from one of the FNB-approved renewable energy providers
- Approval from trustees of body corporate or managing agent if sectional title (if applicable)
- Completed solar energy loan progress payment request form
• Note: Customer to complete the solar energy installation process within a 6-month period after the bond has been registered and/or is ready to be paid out
Documents required on Completion of solar energy solution installation
• To initiate the final payment to the chosen solar energy supplier, customer must submit the following documents
- Updated supplier invoice indicating final balance owing
- Electrical certificate of compliance – supplied by the approved alternative energy solution provider
- Completed solar energy loan final payment request form
- Updated homeowner’s cover policy reflecting the revised sum insured or replacement value inclusive of the solar system installed
Terms, conditions, and product rules apply.
Refer to the detailed terms and conditions on fnb.co.za for more information.