The government's recent announcement of a solar power tax incentive, coupled with the fact that rolling blackouts are unlikely to end any time soon, is set to propel solar power sales. However, these solutions are by no means cheap.

The banks all agree that there are four ways to fund your solar installation:

A personal loan

This is probably the least attractive option given that personal loans carry high interest rates. Under the National Credit Act, the maximum interest rate on personal loans (unsecured credit) is 28.25% a year. The remaining three options involve the use of your home loan facility. The maximum interest rate on home loans is currently 19.25%.

These interest rate caps change every time the repo rate changes, and we are currently in a rising interest rate cycle.

An access bond

This applies if you have extra funds that you have paid into your home loan, over and above the required monthly instalment. Not all home loans include this facility, so you need to check with your bank first.

A re-advance loan

This is where you have an existing home loan with the bank and you want to apply for the funds you have already paid...