Q. Just wondering what you think of ShineHub's current offer of solar panels + battery in exchange for signing a 20 year contract to buy the surplus electricity generated - is it a good deal or not?
A. Let me be very clear. Despite some media reports, this, and similar offers from other companies are not 'free' solar and battery systems.
In the industry they are know as Power Purchase Agreements, or PPAs.
In my experience, with PPAs you are paying through the nose for the solar and batteries because you are typically paying for it over 20 years. PPAs are a very expensive way to buy solar and storage. The most expensive way I can think of in fact.
In my experience these 20 year contracts are not a good deal. Lots of middlemen have to get paid for 20 years. And you are the one paying them for that 20 years.
A house with reasonable consumption with a 6kW Solar system + 10kWh battery should have a close to zero annual electricity bill. Under a PPA you will not have a zero dollar bill. You are locking in bills for 20 years.
In 2018 there is no need to have an electricity bill that is not zero or very small! Under a 20 year PPA you will still have a bill in 2028 and 2038! Ouch.
But I can't afford solar!
Buying solar is simple if you can't afford to pay cash.
1) Get a good personal loan.
2) Now you can get a 'cash' deal from the solar installer.
3) Make sure the loan repayments are less than the savings and you will save money while paying off your system which will be paid for in a few short years.
And click here to learn why we recommend you avoid 'no-interest' deals.