Buying solar for your home should be simple. You want to cut your energy bills and be less reliant on the grid. But then you see the price tag. A good solar setup can cost a lot.
It’s a lot of money for most families. You start looking at finance deals. Suddenly, you’re hit with words like “interest-free,” “BNPL (buy now, pay later),” “green loans,” and “top-up mortgages.” It’s confusing. And you don’t want to make a decision that ends up costing more in the long run.
You’re not alone. Many Australians feel the same. At PSC Energy, we’re here to walk you through every major way to finance solar in Australia in 2025. We’re here as educators first today.
In this article, you’ll learn about the following:
- Is Financing Solar Panels Worth It?
- Buy Now, Pay Later (BNPL): What’s Changed in 2025 and What Hasn’t for Solar Panels
- Five Legitimate Ways to Finance Your Solar Panel System
- Can You Finance Solar Panels?
- FAQ: Solar Finance in 2025
By the end of this article, you’ll learn which options are worth it, which ones to be careful with, and how to decide what’s smart for your home and your wallet.
Is Financing Solar Panels Worth It?
Most Australians like the idea of solar. It saves money on power, it’s better for the environment, and it makes your home more self-sufficient.
But there’s one big problem. Solar isn’t cheap. A standard home system can cost more than $8,000. That’s not something most people can just pay out of pocket.
This is where solar finance comes in.
There are lots of ways to pay for a system over time. Some sound too good to be true. Others come with complex terms or hidden costs. If you don’t read the fine print, you can end up paying more than you expected or get stuck in a bad deal.
Buy Now, Pay Later offers are everywhere now. So are “interest-free” deals. They sound great at first. However, many of them come with strings attached. You may pay more for the system, or you may receive lower-quality parts. And until recently, there weren’t many rules to protect you.
Now, new laws are changing the way solar finance works. These rules help stop unfair practices. But you still need to know what to look out for. Understanding your finance options is the first step to getting solar without the stress.
If you’re interested in learning a bit more about solar panels and energy systems, you might want to check out the following article titled, Are Solar Panels Worth It in NSW, Australia? A Price Breakdown for 2025.
Power up your savings. Click here.
Buy Now, Pay Later (BNPL): What’s Changed in 2025 and What Hasn’t for Solar Panels
Buy Now, Pay Later (BNPL) used to be the Wild West of solar finance. Companies could offer flashy deals without the same rules as banks or other lenders. That changed on 10 June 2025.
Now, BNPL is subject to the same laws as traditional creditors. This means that BNPL providers must comply with the National Credit Code.
- They need a credit licence or must have applied for one.
- They must verify that you can actually afford to make all your repayments, not just the initial one.
- They must also clearly explain any fees, charges, or repayment terms. If you encounter financial difficulties, they must offer hardship assistance.
- And if something goes wrong, they need to have a proper way for you to make a complaint.
This is a big win for everyday Australians. It means you get more protection and more honest information before you sign anything.
But the new rules aren’t perfect. Providers still don’t have to double-check the income and debt details you give them. People can still get into trouble if they overestimate what they can afford.
There’s another catch. Using BNPL can now show up on your credit file. If you miss payments or rely on BNPL services too often, you may appear risky to banks or credit card companies. This could hurt your chances of getting a loan in the future.
You need to look at the full cost of the deal, not just the low monthly payments. You also need to be sure it won’t negatively affect your credit later.
If you’re interested in the hidden costs of solar, you might want to check out the following article titled, Hidden Costs of Installing Solar: Switchboard Upgrades, Three-Phase Homes, Shade, and Meters.
Let’s talk solar savings. Click here.
Five Legitimate Ways to Finance Your Solar Panel System
Not all solar finance options are shady or confusing. Some are fair and clear and can even save you money.
Here are six common ways Australians are paying for solar in 2025. Each one has pros and cons and suits different situations.
Green Personal Loans
These loans are designed for individuals purchasing solar systems, batteries, electric vehicle (EV) chargers, or other energy-saving upgrades. Some banks and lenders offer lower interest rates than standard personal loans because these upgrades lower your living costs.
These loans usually last from 1 to 10 years. They may include fees for applying, early repayment, or monthly servicing, so read the fine print.
This is a good choice if you don’t have cash and don’t want to refinance your mortgage. It works best for people with decent credit.
At PSC Energy, we work with a company called Plenti to secure Green Loans for our customers.
Tip: Try to match the loan repayments to the amount you’ll save on power each month. That way, you could have no out-of-pocket costs.
Adding to Your Mortgage
If you own a home, you can borrow extra money on your mortgage to cover the cost of solar. Most home loan rates are around 6%. Since solar can return up to 12%, this can be a smart move.
If you already have money in a redraw or offset account, using it is even easier. You’ll pay your usual mortgage rate on that money. You can also ask your bank for a top-up loan. Some banks, like Commonwealth Bank, offer green mortgage rates below 4% if you already have a home loan with them.
Compare the total cost carefully. Mortgage loans are cheaper per year, but they often run longer, which means you could pay more over time. Check for application fees or changes to mortgage insurance.
Tip: Use your power bill savings to pay more than the minimum each month. You’ll pay off your mortgage faster.
Rent-to-Own or Solar Leasing
Solar leasing is a common option, better suited for businesses or commercial properties that require large-scale solar systems.
It works a bit like leasing a car, except you can’t return the solar system. The company owns the panels until you have made all the payments. If you sell your house before the lease ends, you must pay off the balance.
The pitch sounds good: pay less than your electricity bill each month and save from day one.
Tip: Always compare the full cost of a lease with the cost of a loan. Long-term loans often have lower monthly payments than leases.
Power Purchase Agreements (PPAs)
This works best for big buildings or businesses that consume a lot of power during the day.
For most homes, PPAs are not effective. But if you run a home business with high daytime power usage, they may be worth considering.
With a PPA, a company installs the system on your roof at no cost. You don’t own the panels. Instead, you agree to buy the solar power it produces. You might pay $0.20 per kilowatt-hour (kWh) compared to $0.38 for power from the grid.
The catch is you’re locked into a contract. You must buy a certain amount of electricity whether you use it or not.
Tip: Review your power usage before signing anything. You need to make sure you’ll actually use most of the solar energy.
Standard Personal Loans
If you don’t want to touch your mortgage and can’t get a green loan, a standard personal loan may be an option. Interest rates are higher, but the terms are simple. Some lenders offer better rates if you own your home or have a good reason for the loan.
Personal loans aren’t tied to your house, so you can sell your home without needing to pay them off. Some people also prefer a higher rate to encourage faster repayments.
Tip: Don’t just go to your main bank. They might give you the same rate they offer a teenager going on a gap year. Use a broker or comparison site to find a better deal.
If you’re interested in learning about the rebate for solar, you might want to check out the following article titled, Understanding the Federal Government Solar Rebate in Australia: The STC Scheme in 2024
Ready to go solar? Click here.
Can You Finance Solar Panels?
Yes, you can. But how depends on your needs and goals.
There is no one-size-fits-all answer when it comes to solar finance. The right option depends on your income, credit score, energy use, and long-term plans.
Start by working out how much power you use and when you use it.
If you’re home during the day, you’ll save more because you can use solar energy as it’s made. That gives you more flexibility when choosing how to pay for the system.
If you’re not home most days, your savings will come from feeding extra power back into the grid. This saves less money unless you bundle your panels with a battery and store that energy during the day. The good news is that with the new federal battery rebate, batteries are now even less expensive than they were before.
Next, check your budget. Can you afford to pay for the system in full? If not, consider loans with the lowest interest rates and fees.
Green loans and home loan top-ups typically offer better interest rates than personal loans or BNPL plans. If your credit score is strong, you’ll get better offers.
Then, compare the total cost of each option. Don’t focus only on the monthly payment. Consider the total amount you’ll repay, including any fees and interest.
A small payment over a long period might seem easy, but it could ultimately cost thousands more.
If you’re considering a 0% interest deal, ask the installer for two quotes: one with financing and one for cash. That will show you how much extra you’re paying for the “free” finance. If they don’t give you a cash price or the repayment details are unclear, that’s a red flag.
Some people prefer the idea of paying off their solar panels quickly. Others want to stretch out payments to keep their monthly bills low. There’s no wrong choice if you understand what you’re agreeing to and how it fits your life.
If you’re interested in learning a bit more about the VPP portion of the battery rebate, you might want to check out the following article titled, NSW Battery VPP Rebate Explained: What You Need to Know.
Get started with solar. Click here.
Final Word: Finance That Works for You, Not Against You
Solar power can give you lower energy bills for decades. But the way you pay for it matters just as much as the panels you choose. A smart finance option can make solar affordable and rewarding. A bad one can turn savings into stress.
Choosing the right option means understanding how much you’ll pay, when you’ll pay it, and what you’re truly getting in return.
Here’s what to do next. Look at your budget and your power bills. Decide if you can pay cash or need a loan. Avoid rushing into “too good to be true” offers. Always compare full quotes with repayment details before agreeing to anything.
At PSC Energy, we know that solar energy is a smart move. And we make sure your finance plan is just as smart. It’s what we do.
If you’re interested in learning a bit more about the federal solar rebate, also known as the Federal Cheaper Home Batteries Program, you might want to check out the following article titled, What the 2025 Federal Election and the Government Rebate Means for Solar Batteries in Australia.
FAQ: Solar Finance
What’s the best way to finance solar panels?
There is no single best way for everyone. The right option depends on your financial situation, energy use, credit score, and whether you can pay upfront. Paying cash usually gives the best return. Green loans and mortgage top-ups offer lower interest rates than personal loans. BNPL and leasing may cost more in the long run and should be chosen with caution.
Are 0% interest solar deals really interest-free?
Not exactly. While you don’t pay interest in the traditional sense, the cost is built into the system price. BNPL providers charge installers fees. Installers pass this cost on to you through higher prices or lower-quality components.
What are the risks of using Buy Now, Pay Later (BNPL) for solar?
The main risks include paying more than the cash price, using a lower-quality system, and harming your credit score. Even with new rules, BNPL deals may still be harder to exit because they are less flexible. They can limit your ability to get other loans later.
What has changed with BNPL laws in 2025?
As of 10 June 2025, BNPL is now regulated under the National Credit Code. Providers must have a credit licence, assess your ability to repay, explain fees upfront, offer hardship support, and handle complaints properly. But they are not required to verify your income or debts.
What should I check before accepting a BNPL solar quote?
Make sure the quote clearly shows the following:
- How often you’ll make payments.
- How much each payment will be.
- How many total payments.
- The total amount you’ll pay in the end.
If any of these are missing or unclear, ask for clarification or avoid the deal.
Is a green personal loan better than a BNPL deal?
Often, yes, especially if you have good credit. Green loans typically have lower interest rates and more transparent terms. They also tend to offer more flexibility and transparency than BNPL options. This is the type of financing PSC Energy offers customers.
Can I use my mortgage to pay for solar?
Yes. You can either draw from an offset or redraw account or request a top-up loan. Some banks also offer green home loan rates, which can be even lower than your standard mortgage rate. Be sure to check fees and their impact on your long-term loan costs.
Can solar financing affect my credit score?
Yes. Any formal loan, including green loans, personal loans, or BNPL, may affect your credit file. If you miss payments or use BNPL too often, it can lower your credit score and affect your ability to borrow in the future.
How can I make sure I’m not overpaying for solar?
Ask for both a cash quote and a finance quote. This will show you how much extra you’re being charged for using finance. Also, get multiple quotes from different providers and compare not only the system but the financial terms.
What if I fall behind on solar financing repayments?
Under the new BNPL rules, providers must offer hardship assistance to customers. With other loans, contact your lender as soon as possible. Early action can prevent late fees, damage to your credit score, and legal action.
