The upfront cost of a solar system — typically $5,000–$8,000 for a quality 6.6kW system — puts some households off. But there are several solid ways to finance solar without draining your savings, and in some cases the monthly repayment is lower than the monthly savings. Here's how each option works.
Option 1: Interest-Free Finance (Through Your Installer)
Many Australian solar installers offer interest-free payment plans through third-party finance providers like Brighte, Humm, or Plenti. You pay nothing (or a small deposit) upfront and repay over 12–36 months interest-free.
Catch: interest-free finance through installers sometimes comes with a slightly inflated system price — the installer pays a fee to the finance provider, which can get baked into the quote. Compare the cash price vs the financed price, and compare the financed quote against a quote from another installer without the finance offer.
For households who want solar now without tapping savings, Brighte in particular has become a trusted product in the industry. Terms are clear, early repayment is allowed, and the finance doesn't attach to the property.
Option 2: Green Loans (Through Banks)
A growing number of Australian banks offer green loans or sustainability loans for solar and battery installations at rates 1–2% lower than standard personal loans. Examples include Bank Australia, Macquarie, and Community First Bank.
The advantage: you go direct to the lender without the installer markup on finance. Rates in 2026 start around 5–7% p.a. for green loans versus 10–14% for standard personal loans. If you need 5–7 years to repay, a green loan beats interest-free installers (which typically cap at 36 months) on total repayment.
Option 3: Government Schemes
State and territory governments offer some interest-free or concessional finance specifically for solar:
- ACT: The Sustainable Household Scheme offers interest-free loans up to $15,000 for solar and batteries, repaid through ACT rates over up to 10 years.
- Victoria: The Solar Homes Program has included interest-free loans of up to $1,400 for eligible households (check current availability on solar.vic.gov.au).
- Other states: Programs vary and change — check your state government's energy rebates page for current offerings.
These government schemes are the best value finance available where they exist. The ACT scheme in particular is excellent — repaying through rates with no interest is hard to beat.
Option 4: Redraw from Mortgage
If you have a mortgage with redraw available, this is often the cheapest way to finance solar — at mortgage interest rates (typically 5–7% in 2026) with no extra fees. The solar system's annual savings should exceed the interest cost on the redrawn amount for virtually any system, making the net cash flow positive immediately.
What to Avoid: Solar Leases and PPAs
Power Purchase Agreements (PPAs) and solar leases — where a third party owns the panels on your roof and you buy power from them — exist in Australia but are generally less common and less advantageous than in the US. Under these arrangements, you don't own the system, the STC rebate goes to the provider, and the contract can complicate property sales. Approach these arrangements with caution and read exit terms carefully before signing.
The Calculation That Matters
Compare your monthly loan repayment against your monthly electricity bill reduction. For a quality 6.6kW system, monthly savings are typically $150–$250 per month. If your monthly repayment on a 3-year interest-free plan is $175, you're cash-flow positive from month one.
Upload your electricity bill to GridBeater to estimate your monthly savings before you decide on financing — knowing the savings number makes the finance decision straightforward.
Estimate your monthly solar savings → Upload your bill free at GridBeater