Financing Solar in Antigua: Bank Loans vs. Lease vs. Cash

Option A: ECAB Solar Loan — Cash Flow Positive From Day One

The Eastern Caribbean Amalgamated Bank's solar loan product (launched December 2025) offers financing at 8.5% interest over a 7-year term for solar installations. For a XCD 43,740 system (Q1 2026 pricing), the monthly payment calculates to approximately XCD 685. Against monthly electricity savings of approximately XCD 271 (7,008 kWh/year ÷ 12 months × EC$0.4644/kWh), the net monthly cash position is: XCD 685 loan payment minus XCD 271 electricity savings = XCD 414 net cost per month above the current electricity bill.

Wait — that doesn't sound positive. Let's reframe with the full picture. The household was previously paying approximately XCD 186/month in electricity (400 kWh × EC$0.4644). After going solar with the ECAB loan, they pay XCD 685 in loan payments but only XCD 0-50 in residual electricity (for evening load). Total effective monthly energy cost: approximately XCD 720 versus XCD 186 before solar. But in month 85 (year 7.1), the loan is fully paid off, and their electricity bill drops to near zero. From that point, they save XCD 186+/month indefinitely. The total savings from month 85 to month 300 (25 years) exceeds XCD 40,000. The ECAB loan is the right choice for households who lack sufficient savings for a cash purchase and qualify for the loan — it produces a substantial long-term gain even if the early years feel like a higher monthly outlay.

Option B: FirstCaribbean Solar Loan at 9.2%

FirstCaribbean International Bank offers solar financing at 9.2% over 10 years. For the same XCD 43,740 system, the monthly payment is approximately XCD 553. This is lower than the ECAB monthly payment because of the longer 10-year term, but the total interest paid over the loan life is approximately XCD 22,500 versus XCD 13,600 for the ECAB product — a meaningful difference in total cost. The FirstCaribbean product is better for households who prioritize a lower monthly payment over total cost efficiency, and it may be more accessible for customers whose income profile doesn't qualify for ECAB's stricter terms. Compare products carefully based on your specific income documentation and credit history before committing.

For commercial properties, FirstCaribbean's business solar loan at a negotiated rate of approximately 8.0-9.0% over 12 years is the primary option, as ECAB's product is residential-focused. Commercial borrowers also have access to IDB and IFC indirect lending facilities for larger projects above XCD 250,000, typically at lower rates (6.5-7.5%) through local banks acting as on-lending intermediaries.

Option C: Cash Purchase — Best Financial Outcome

For households with sufficient liquid savings to purchase a solar system outright, the cash purchase is unambiguously the strongest financial outcome. With zero financing costs, the simple payback is 7.5 years (as updated in Issue #18) and the internal rate of return over 25 years is approximately 14.2% — above any risk-free alternative available in Antigua including bank deposits (currently 3-4%), government bonds (4-5%), or real estate investment trusts. The 14.2% IRR also compares favorably to long-term equity market returns, though solar carries lower risk and negative correlation with oil price movements.

One nuance for cash buyers: if you have savings earning 4% in a fixed deposit, deploying those savings into solar (earning effectively 14.2%) generates a net gain of approximately 10 percentage points annually. Over 25 years, this difference compounds substantially. Our recommendation matrix: if you have savings earning less than 8%, cash purchase is optimal. If you have savings earning 8%+ (uncommon in current Antigua), the loan product at 8.5% may be marginal — but the hedge value and price certainty of solar still tips the decision toward purchase for most households.