Question 1: What is the SMART Energy Loan?
Answer: The SMART Energy Loan is for homeowners who need financing to outfit their home with energy saving technology such as solar panels and batteries, solar water heaters, solar insulation, and other renewable energy technology (windmills, hydropower, and biomass), rainwater harvesting and storage (to include tanks and pumps).
Question 2: When will the loan become available?
Answer: The loan becomes available as at July 1, 2024.
Question 3: Who can apply for the loan?
Answer: To be eligible, you must be a homeowner who is a current NHT contributor looking to install solar panels and batteries, solar water heaters, solar insulation, and other renewable energy technology (windmills, hydropower, and biomass), rainwater harvesting and storage (to include tanks and pumps). Applicants should own and occupy the property for which they are applying to install. Mortgage payments must be up to date at the time of application.
Question 4: How much will I get to borrow?
Answer: You may access up to $1.5 million for a SMART Energy loan (subject to affordability).
Question 5: Can I co-apply with someone?
Answer: You may co-apply with other qualified NHT contributors once all names are on the title.
Question 6: What is the interest rate for the loan?
Answer: The loan will be calculated at an interest rate of 5%.
Question 7: How long will I get to repay?
Answer: The loan term is for a maximum of 10 years or up until age 70, whichever comes first
Question 8: Can I apply for the SMART Energy loan using an External Financing Mortgage Programme (EFMP) partner institution?
Answer: Yes. You can apply for the Smart Energy Loan via an NHT mortgage partner.
Question 9: Will the NHT facilitate my application if I do not want to use an EFMP partner?
Answer: If you are a current NHT mortgagor, and the NHT is your sole mortgage institution, you may apply directly at the NHT for your SMART Energy loan. If you need additional funding however (i.e. more than the NHT’s loan limit of $1.5million), you should apply via an EFMP partner.
Question 10: What security will the NHT require in order for me to access the loan?
Answer: Your title or your contributions held by the NHT (once sufficient) can be used as collateral.
Question 11: How will the NHT treat with insurance for the smart energy loan technology?
Answer: Energy saving technologies (as identified under the NHT Smart Energy Loan) that are affixed to your property will be tied to the overall sum insured. This means that fixtures are included in the applicable deductible for the building depending on the type of loss.
Question 12: What percentage will I be required to pay on my solar panel if it is damaged due to fire?
Answer: The NHT peril insurance safeguards your property in the event of incidents that may cause damage to, or loss of property. Under the policy, properties are insured based on the replacement value, which includes anything that is affixed to the building such as solar panels. Fiixtures are included in the applicable deductible for the building, depending on the type of loss, which varies:
- Fire: 0% of the sum insured;
- Acts of God (e.g., earthquakes, hurricanes): 2% of the sum insured
- Theft / Flooding: 1% of the sum insured
Question 13: Will there be a difference in how insurance is treated based on whether you live in a strata or non-strata development?
Answer: Only non-strata developments are applicable for this loan facility. Special approval would need to be granted for strata development and loan granted under special conditions.
Question 14: I already accessed my Home Improvement/10 Plus/15 Plus loan from the NHT; can I still get a SMART Energy Loan?
Answer: Yes. You may still access a SMART Energy Loan if you have already accessed any NHT loan facility. This includes Open Market, Scheme, 10 Plus or Home Improvement loans.
Question 15: Can an applicant apply for additional portion of the loan if the full amount was not accessed?
Answer: Yes. The loan will however be disbursed on the initial tenure and loan limit.
Question 16: How many people can apply for the SMART Energy Loan?
Answer: Yes. Up to three applications can be facilitated.
Question 17: Can the 10 Plus Loan be used with the Smart Energy Loan?
Answer: Yes (subject to affordability).
Question 18: If I have applied for the Solar Water Heater Loan, will I still be able to apply for the Smart Energy Loan?
Answer: Yes, you will be able to apply for both loans.
Question 19: How will the loan be disbursed?
Answer: The loan will be disbursed in two tranches. The first tranche will be expended on receipt of the proforma invoice. The second tranche will be disbursed following a site visit.
Question 20: Can the loan be used to install air condition systems?
Answer: No. The loan should only be used for installing solar panels and batteries, solar water.
Published: July 1, 2024