A recent survey has revealed a significant interest among Fijian households and businesses in adopting solar energy, but the lack of adequate financing options is hindering this movement. The survey, which involved over 5,000 participants across Fiji, was jointly conducted by Solar Hub and the Australian Government’s Market Development Facility (MDF).
The findings were shared with more than 50 stakeholders at an event in Suva, including representatives from government agencies, regulatory bodies, financial institutions, insurance companies, and development organizations. The research indicated that nearly 70% of urban households are willing to invest in solar systems out of their own pockets, while 50% showed interest in alternative financing methods such as loans or subscriptions.
However, the survey also highlighted that only four out of thirteen financial and insurance providers interviewed offer solar power packages, with two others suggesting that solar products could be financed through their existing loan options. Yogesh Chand, co-founder of Solar Hub New Zealand and Fiji, urged financial institutions to improve their offerings for those interested in solar energy, especially as several banks in Fiji provide such services in markets like Australia and New Zealand.
Chand posed the question as to why banks, which can charge interest rates of about 3% to 4% on home loans, do not extend similar options for solar system installations. He emphasized that enhancing these financial options would decrease energy bills while contributing to a sustainable future, particularly for customers already managing mortgage payments.
Additionally, Joel Abraham, CEO of the Fijian Competition and Consumer Commission (FCCC), remarked that the existing regulatory frameworks should be reassessed to encourage more private sector investments and boost the uptake of solar energy in Fiji.