Zahra Ennis • October 11, 2020 • 4 minute read

One of the top concerns in getting a Solar PV System installed is the cost. Depending on your energy needs, the cost of a residential grid-tie system in Jamaica could be as little as US$1500. However, that amount of money is much more than pocket change for the majority of the country. So the question is, what financing options, if any, are available for Solar Panel Installations in Jamaica?

Fortunately we can tell you of at least 4 options that may be easier to use than you think!

NHT Solar Loans

A little known fact is that the NHT actually provides a loan for residential solar panel installation. This Homeowners loan is separate from the NHT benefit that Jamaicans are eligible for when purchasing their first house. There are two ways you can get it. You have to be eligible for this NHT Benefit and:

You claimed your NHT benefit at least 15 years before OR

You have not yet claimed your NHT benefit 

This Homeowners loan is given at extremely low rates that are dependent on a few factors. See the table below to know which rates you may be eligible for with an NHT loan. 

Development Bank of Jamaica Residential Line of Credit

The DBJ offers this line of credit for householders to purchase and install renewable energy solutions for their homes.According to the DBJ website, you can apply for a loan to finance up to 90% of a renewable energy project (up to a maximum of JMD$2M). They will give you up to 8 years to repay at a 9.5% sub borrower interest rate. This is a great option for someone that may not be eligible for the NHT Homeowner loan above. 

NCB SME Development Loan Fund

The entrepreneurial spirit in Jamaica is especially strong. This means that if like many entrepreneurs you are using your home as the base for your business, you may be able to utilise that to qualify your home for this loan. The rates offered in this program are some of the best we have seen and can be as low as 6.5% for JMD loans. The major qualification for this loan is that your business must be operating as a registered SME. Other details can be found here. 

Unsecured Loans

Many financial institutions offer unsecured loans that can be used for any project one desires. This option is last on our list as it is definitely the one that we would recommend the least. The rates for these loans tend to be quite high. The lowest interest rate advertised in 2020 for an unsecured loan was 18%! We would only recommend this option if you are intending to pay off this loan very quickly.   

While the task of organizing funding for your solar system installation may seem daunting, it's good to know that there are at least a few options available to Jamaicans! We at Saddle Energy Ltd. hope this information helps you in making your decision and are here to help you get started on your solar energy project.

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