Solar and battery finance: how to pay for your system

A solar and battery system is a pretty big upfront cost, but unlike paying for a holiday or a car, you're buying something that can help cut your electricity bills.

That makes financing it a little different.

You'll want to look at more than just whether you can afford the repayments.

The interest you pay, how much you could save on your energy bills and how long it takes for the system to pay for itself all matter.

With the right numbers, your system could pay for itself while you're paying it off.

But if you borrow more than you need or get stuck with expensive finance, interest can quickly eat up those savings.

Work out what you actually need to finance

Before you start looking at finance, work out how much your solar and battery system will cost after any rebates or discounts you're eligible for.

There are federal discounts available for solar and batteries, and some states, territories and councils also offer their own rebates, discounts or low-interest loans.

For solar, the federal Small-scale Renewable Energy Scheme can reduce the upfront cost through Small-scale Technology Certificates (STCs).

Eligible batteries can also get around a 30% discount through the Cheaper Home Batteries Program. This is a federal government scheme that reduces the upfront cost of installing a battery with new or existing rooftop solar.

Your retailer or installer will generally factor these discounts into your quote.

Before you apply for finance, make sure you're borrowing based on the final price, after any applicable discounts.

These are rough figures only. What you'll pay can vary depending on where you live, the brand you choose and your installer.

See home battery costs for current pricing by capacity, or adding a battery to an existing solar system if you already have solar panels.

And as we mentioned, it's also worth checking what state government help you're eligible for before you apply for finance.

WA, NSW and the ACT, for example, have their own support for solar and batteries, including rebates and low-interest loans.

If you qualify, this could reduce the amount you need to borrow.

What are your options for paying for solar and batteries?

You don't have to pay for your solar or battery system all at once.

There are a few ways to spread out the cost, from using your savings to taking out a dedicated green loan or using a government-backed scheme if you're eligible.

The cheapest option on paper isn't necessarily the best one for you. It depends on the interest and fees, how quickly you want to pay it off and what else you could be doing with the money.

Here are the main ways you can pay for a solar or battery system, and what to watch out for with each one.

1. Cash or savings

If you have enough money set aside, paying upfront means you don't have to worry about interest or loan fees.

But that doesn't automatically make it the best use of your money. If your savings are sitting in a mortgage offset, for example, taking that money out means you'll pay more interest on your home loan. So compare the interest you're saving by keeping the money in your offset with the cost of borrowing elsewhere.

Best for: people who have enough savings to pay upfront without leaving themselves short on emergency cash.

Watch out for: using up savings that you might need for other expenses or losing the interest savings from an offset account.

2. State and territory government loans

Some state and territory governments offer loans to help households pay for solar, batteries and other energy upgrades. These can be cheaper than a standard personal or green loan, with some offering 0% interest.

What you can borrow, how much you'll pay and who's eligible depends on where you live. Here's what's currently available in some states and territories:

• NSW. The Home Energy Saver program offers eligible homeowners a zero-interest loan of up to $15,000, with up to 10 years to repay it. You can use the loan for solar, batteries and other energy upgrades. Income and other eligibility requirements apply.
• Western Australia. The Residential Battery Scheme offers eligible households a state battery rebate as well as a no-interest loan of up to $10,000. The loan is available to households with a combined income below $210,000. You'll also need to meet requirements around the battery and joining an approved Virtual Power Plant.
• ACT. If you're buying a battery, the Sustainable Household Scheme offers eligible households loans of up to $20,000 at 3% interest, with up to 10 years to repay. Solar is a little different. It's not covered by the standard 3% loan, but eligible concession-card holders can get a rebate of up to $2,500 (50% of the cost) through the Home Energy Support Program, plus a zero-interest loan of up to $10,000 to help cover the remaining cost.

Watch out for: Keep in mind that you may need to meet income requirements, use an approved product or installer, or cover some of the system's cost yourself if the loan doesn't cover the full amount.

3. 0% interest payment plan

You may be offered a 0% interest payment plan through your solar or battery installer.

You don't pay interest, but that doesn't necessarily mean the finance is free.

For example, Brighte's 0% Interest Payment Plan lets you borrow $1,000 to $60,000 and repay it over 6 months to 10 years.

It currently charges a $75 establishment fee and a $2.30 weekly account keeping fee, which is built into your repayments.

There can also be a $4.99 late payment fee, capped at $49.90 a year. There's no fee for paying it off early.

That weekly fee might not sound like much, but the longer you keep the loan, the more it adds up.

Best for: People who want fixed repayments and don't want to pay interest.

Watch out for: The fees and the loan term. A 0% loan can still cost you money, particularly if you leave it running for years.

4. Discounted green loan through the Household Energy Upgrades Fund

The Australian Government's $1 billion Household Energy Upgrades Fund (HEUF) works with lenders to offer discounted finance for home energy upgrades. That includes solar and batteries, as well as things like insulation, EV chargers and energy-efficient appliances.

Participating lenders and finance providers include Brighte, CommBank, ING, Plenti, Plico and Westpac. The panel can change, so check the CEFC website for the current list. The exact loan, rate and eligibility requirements depend on the lender.

The Clean Energy Finance Corporation says CSIRO analysis found energy costs fell by 80% to 85% in homes upgraded with HEUF finance, with savings averaging $1,700 to $2,300 a year. Your actual savings will depend on your home, energy use and the upgrades you install.

Best for: Anyone who can access a HEUF-backed loan and is comparing green finance options.

Watch out for: Comparing the actual rate, fees and loan terms between lenders. The HEUF doesn't mean every participating lender offers the same deal.

5. Green personal loan

A green personal loan is a personal loan specifically designed for things like solar, batteries and other energy-efficient upgrades.

Some lenders offer a lower rate than they charge on their standard personal loans, but it's worth comparing the actual offers rather than assuming you'll get a better deal.

For example, Brighte's Green Loan currently has a fixed interest rate from 9.49% p.a. and a 10.98% comparison rate. The comparison rate includes certain fees and charges and is designed to show the loan's overall cost.

You can borrow between $2,000 and $60,000 and repay the loan over 2 to 10 years.

Fees include a $199 establishment fee and a $2.70 weekly account keeping fee.

The 9.49% rate is the lowest advertised rate, so you may be offered a higher rate.

Compare green personal loans before accepting the one offered by your installer.

Best for: People who want a fixed rate and a set repayment period.

Watch out for: The comparison rate and fees, not just the advertised interest rate.

6. Adding it to your home loan or using a redraw

If you've made extra repayments on your home loan, you may have money available to redraw.

This means your lender may let you take some of that money back out to pay for solar panels or a battery.

You could also increase your home loan using the equity in your home, or look for a green home loan with a discounted rate for energy-efficient upgrades.

The catch is that home loans usually run for much longer than solar or battery finance.

If you borrow $15,000 and let that extra amount run for another 20 or 25 years, you could pay considerably more interest than if you cleared it over a shorter period.

If you do use your home loan, consider whether you can make extra repayments and clear the solar or battery cost sooner.

Best for: Homeowners who can access a competitive home loan rate and can pay the extra amount down over a shorter period.

Watch out for: Letting a relatively short-lived purchase become part of a decades-long debt.

7. Solar lease or power purchase agreement

There are ways to get solar without buying the system upfront, although they're less straightforward than simply buying it or taking out a loan.

With a solar lease, a provider installs the system and you make regular payments over an agreed period.

With a power purchase agreement (PPA), the provider owns and maintains the system and you pay for the electricity it generates at an agreed rate.

These agreements can run for years, so look closely at the total cost, what happens if you sell your home and who owns the system at the end.

The overall cost of a solar lease or PPA can also be higher than paying for a system upfront.

Best for: People who want solar without buying the system upfront and understand the long-term contract.

Watch out for: The total cost, exit fees and what happens to the agreement if you sell your home.

Comparing the options side by side

Rates and fees can change, so these were correct when we wrote this. Check the provider's current terms before applying.

What does a 0% finance plan actually cost?

A 0% interest means you don't pay interest on the amount you borrow, but you can still pay fees.

For example, a plan with a $75 establishment fee and $2.30 a week in account-keeping fees would cost roughly:

• Over 3 years: $434
• Over 5 years $673
• Over 7 years: $912
• Over 10 years: $1,271

The longer you keep the finance, the more those weekly fees add up.

So while a 0% plan can be a relatively cheap way to spread out the cost, it's still worth comparing the total cost with a green loan or other finance option.

If you can comfortably afford the higher repayments, paying it off sooner will also mean paying fewer account-keeping fees.

Think about your other borrowing plans

If you're planning to apply for a home loan or refinance soon, a solar or battery loan is worth factoring in before you sign up.

A finance agreement is another debt commitment, so a lender will take the repayments and your other debts and expenses into account when assessing a future loan application. This could reduce how much you're able to borrow.

Applying for finance also creates a credit enquiry on your credit report. A few applications close together can raise concerns for lenders, so avoid applying for several loans just to compare them.

If you're planning to apply for a mortgage soon, it may be worth talking to your broker or lender first so you know how the extra debt could affect your application.

Things to watch out for when finance is offered with your system

• The rate or fees aren't clearly shown on the quote and you're only given a weekly or monthly repayment.
• You're shown the regular repayment but not the total amount you'll pay over the life of the finance.
• You're made to feel like the finance is your only option, or the system price changes depending on how you pay.
• The system price looks much higher than other quotes and the difference is being justified by the finance arrangement.
• You're asked to sign the finance contract before you've had a chance to understand the system, quote and terms.
• The amount being financed doesn't reflect the final price after any applicable rebates, discounts or incentives.
• You're pressured to sign on the spot because an incentive or offer is supposedly about to disappear.

None of these automatically means the finance or solar system is a bad deal. They're signs to slow down, read the paperwork and compare the total cost with other quotes and finance options.

For more on where solar buyers can lose money, see 10 solar mistakes that cost Australians money.

Pros and cons of financing solar and batteries

Frequently asked questions

• Can I finance a battery on its own, without buying panels?

  Yes. Green loans and 0% interest payment plans can generally be used to finance a battery on its own. The federal battery discount can also apply when you're adding a battery to an existing rooftop solar system.

  You do need existing or new rooftop solar to qualify for the federal discount, so a battery that isn't connected to solar won't be eligible.

• Do I finance the price before or after the rebate?

  After. Both the Small-scale Technology Certificate discount on panels and the Cheaper Home Batteries discount are usually applied by the retailer as an upfront discount, so the invoice you finance should normally already have them deducted.

  If a quote shows a finance amount higher than the final price you're paying, ask the installer to explain it before you sign.

• Is a 0% interest plan cheaper than a green loan?

  Not necessarily.

  Compare the total amount payable rather than the interest rate. A 0% plan with a weekly account-keeping fee over 10 years can cost more than a shorter-term green loan with a low interest rate.

  Work out the total repayments minus the amount borrowed for each option and compare the two numbers directly.

• What happens to the finance if I sell my house?

  With a loan or payment plan, the debt is yours, not the property's, so you'll generally keep repaying it or pay it out from the sale proceeds.

  The system stays with the house.

  With a lease or power purchase agreement, it works differently because the agreement is tied to the system. You may need to transfer the agreement to the buyer or pay it out when you sell, depending on the contract.

  Check the exit terms before you sign anything long-dated.

• Who are the approved lenders for the NSW interest-free loan?

  Brighte and Plenti are the two participating finance providers for the NSW 0% interest Home Energy Saver loan of up to $15,000.

  You apply through the finance provider rather than the government, and the loan can cover solar, batteries and other eligible home energy upgrades.

• Will applying for solar finance hurt my credit score?

  Applying for finance creates a credit enquiry on your credit report, which lenders can see when assessing future applications. Several applications in a short period can also affect how lenders view your credit activity.

  If you're close to applying for a mortgage, factor the new repayment into your borrowing plans and consider speaking to your broker or lender before applying.

Written by

Mariam Gabaji

Senior Utilities Editor & Tech Expert

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Mariam Gabaji is a journalist with 13 years of experience, specialising in consumer topics like mobile services and energy costs. Her work appears in the ABC, Yahoo Finance, 9News, The Guardian, SBS, 7News, A Current Affair and Money Magazine. Mariam holds a Bachelor of Arts in Journalism and was a finalist for the 2024 and 2025 IT Journalism Award for Best Telecommunications Journalist. See full bio

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