Hapoalim offers loans for domestic solar panels

The full loan is for up to ten years.

3 July 08 13:02, Merav Ankori

Bank Hapoalim (TASE: POLI; LSE:80OA) has launched a financing package for private customers to buy home solar systems. The bank says on its website that it is offering customers full financing at low interest rates for up to ten years.

The bank added that the product was the first in a series of eco-friendly financial solutions that will support market needs in dealing with environmental issues. The bank said that, in addition to the contribution to the environment, it sees a business opportunity in a growing market.

The government recently published regulations under which Israel Electric Corporation (IEC) (TASE: ELEC.B22) will, from July 1, buy the surplus power from private producers of solar power generated electricity.

A homeowner with a solar power system will be eligible for a NIS 2.04 per kilowatt/hour (kw/h) rebate on electricity produced, and will pay NIS 0.50 per kw/h for electricity consumed. The result is cash flow. The return on investment in the system is estimated at 8-10 years. The regulations offer homeowners the financial incentive to encourage the installation of household solar power systems, in addition to the homeowners' environmental awareness.

Published by Globes [online], Israel business news - www.globes-online.com - on July 3, 2008

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