Don’t have your Nedbank ID yet?
Nedbank ID single sign-on gives you full digital access to Nedbank’s banking and lifestyle products and services on the Money app or Online Banking.
Log in
Log in to Online Banking or another one of our secured services.
Get in touch
Find us
- Login & Register
- Online Banking
- Online Share Trading
- NetBank Business
- NedFleet
- Nedbank Greenbacks
- Nedgroup Investments
- Nedbank ID
- Bank
- Accounts
- Credit cards
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Greenbacks
- Explore Bank
- Accounts
- Everyday banking
- Kids accounts
- Youth banking
- Seniors accounts
- Private Clients
- Private Wealth
- Digital wallet
- See all accounts
- Premium banking
- Get help choosing
- Goal saving
- Family Banking
- Refugees and asylum seekers
- FAQ
- How-to guides
- Discontinued accounts
- Everyday banking
- MiGoals Premium
- MiGoals Plus
- MiGoals
- Kids accounts
- MiGoals4Kids
- Youth banking
- MiGoals Premium
- MiGoals
- MiGoals Plus
- Seniors accounts
- MiGoals Premium Senior
- MiGoals Plus
- Private Clients
- Pay-as-you-use
- Young Professionals
- Private Bundle and Private One
- Private Wealth
- Private Wealth Bundle
- Digital wallet
- MobiMoney
- American Express
- Amex Gold
- Amex Platinum
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Greenbacks
- Exclusive discounts
- FAQ
- How-to guides
- Save & Invest
- Accounts
- Investment services
- Share trading
- Explore Save & Invest
- In 24 hours
- JustInvest
- PlatinumInvest
- Tax-free Savings
- MoneyTrader
- EasyAccess Fixed Deposit
- PrimeSelect
- In 32 days
- Electronic 32Day Notice
- 32Day Notice
- End of term
- Tax-free Fixed Deposit
- Electronic Fixed Deposit
- Electronic Optimum Plus
- Platinum Fixed Deposit
- Fixed Deposit
- OptimumPlus
- Investment services
- Share trading
- Borrow
- Personal loans
- Home loans
- Student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Debt assistance
- Explore Borrow
- Personal loans
- Loan consolidation
- Personal loans
- Home improvement loan
- Exclusive short-term loan offers
- Explore loans
- FAQ
- How to guides
- Loan consolidation
- Personal loans
- Home improvement loan
- Exclusive short-term loan offers
- Home loans
- Buy
- Build
- Switch
- Manage
- Further lending
- Explore home loans
- Request a call back
- Track application
- FAQ
- How to guides
- Buy
- Explore buy
- First time home buyer
- Repeat buyer
- Renewable energy financing
- HomeVision
- Home-buying Toolkit
- Edge properties
- Repossessed properties
- Switch
- Explore switch
- Further lending
- Explore further lending
- Student loans
- Explore student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Debt assistance
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- We have payment solutions to get you back on track
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- We have payment solutions to get you back on track
- Insure
- Life cover
- Funeral cover
- Short term insurance
- Credit Life
- Travel insurance
- Business cover
- Secure investments
- Explore Insure
- Life cover
- Get a call back
- Explore MyCover life
- Funeral cover
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Get a call back
- Explore MyCover Funeral
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Alternative energy insurance
- Legal expenses | Nedbank Insurance
- Get a call back
- Explore MyCover short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Alternative energy insurance
- Legal expenses | Nedbank Insurance
- Credit Life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Get a call back
- Explore credit life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Travel insurance
- Business cover
- Secure investments
- Guaranteed Growth Income Plan
- Guaranteed Growth Plan
- Get a call back
- Explore MyCover Funeral
- Guaranteed Growth Income Plan
- Guaranteed Growth Plan
- Plan
- Financial planning
- Estate, wills & trust services
- Nedbank Private Wealth
- Speak to a financial adviser
- Explore Plan
- Financial planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Estate, wills & trust services
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Nedbank Private Wealth
- Speak to a financial adviser
- Learn
- Blog
- Explore Learn
- A financial adviser can help you plan your future
- Contact us
- Talk to us
- Find us
- Explore Contact us
- Talk to us
- Find us
The real cost of solar power systems
Explore the total cost of solar and how to create a return on your investment.
You may be among the many South Africans who have turned to solar power to maintain electricity supply to their homes and businesses when the national grid is out. It’s a good money choice if the cost to install and maintain solar is less than the cost of lost productivity and income during load-shedding.
In theory, the initial cost of installing solar is also offset by less reliance on the national grid and a lower monthly electricity bill. Even so, there’s no denying that a solar installation can be costly. Depending on the size of the system you need, especially the number of batteries, you could spend between R50,000 and R300,000 to secure a reliable electricity supply for your house or small-business premises.
Cost vs a return on investment
When you consider cost, it’s better to think about the long-term financial impact. There are 3 major factors that can affect the overall cost of installing, maintaining, and running the system:
- The size of the system you need
How many solar panels and batteries will you need, and what size inverter, to enable your home or business to run seamlessly on solar when the grid fails? How will your needs change over time?
- The costs of installation and maintenance
How do you find a qualified, reputable installer who can assess your needs accurately, help you design your system, and install and maintain it for you at an affordable price?
- The costs of credit
Will you need finance to pay for the installation?
An important consideration is the overall return on your investment from what is a significant outlay, especially for a home-based system. But there are different ways to think about this, depending on your budget and how you want to pay for your solar system. Different solutions will offer different returns, but you should focus on affordability, savings, what you can power on your premises, and for how long.
It’s useful to look at financing your solar system with the return on investment in mind
Solar solutions
All the solutions listed here are available through Nedbank’s Avo Solar platform, which provides a 1-stop shop for a range of solar solutions and solar finance options. They will each have slightly different returns on investment, depending on your priorities regarding solar needs and your finance requirements. Remember that no matter what return on investment your chosen option offers, it will only be realised over the long term.
There are 2 ways in which solar installations can offer a return on investment:
- Cost of the system
If you choose a midrange solar installation package from Avo – for example, the Gold package at a cost of R147,000, which includes panels with a 4.4 kW generation capacity, a 5.5 kW inverter, a pair of 5 kWh batteries, installation and a 10-year warranty – you will break even on your investment in about 5 years and 6 months, and after 10 years you’ll have recouped the purchase price and banked R180,000 in savings from your investment.
- Cost of electricity itself, per unit
The current cost of electricity per unit is around R2.50 on average. This will increase by between 10% and 13% a year, given that Eskom has just had a 13% increase approved by the regulator. Without solar you will be paying R4.43 per unit of electricity in 6 years’ time, and R6.48 per unit in 10 years’ time (assuming averaged annual price increases). A solar system will secure your electricity costs over the next 6 years at R2.83 per unit, and at only R1.81 per unit over the next 10 years.
Financing your solutions
It’s useful to look at financing your solar system with the return on investment in mind. Nedbank offers different options through its stand-alone asset finance company, MFC. Here are some examples to consider, based on an Avo Gold package:
- 6-year finance plan
If you take finance through MFC over 72 months at prime plus 3%, at a monthly cost of R3,185, potential savings on the solar system start from R1,683 a month and progress to R2,710 a month in year 6. Assuming the interest rates remain stable, your instalments are paid off after year 6 and your cost savings on electricity increase.
- 8-year finance plan
If you take finance through MFC over 96 months at prime plus 2.3%, the monthly cost equals R2,617 a month. Potential electricity savings start from R1,683 and rise to R2,710 per month in year 6.
- Home loan options
If your home loan is with Nedbank, a financing structure for a solar system is available over 10 years, calculated at prime interest rate, with a monthly cost of R2,088 per month. Potential savings through the home loan financing route will start at R1,683 and rise to R2,710 a month in year 6. After year 3, savings potentially offset your solar financing installments, and you can structure a settlement to put as much as R2,240 a month back into your home loan for early settlement.
