Solar and Battery Finance Options
ADS Team
Author
August 11, 2026
about 1 month ago
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In short: Solar and battery systems can be funded through a green personal loan, a mortgage redraw or increase, a BNPL-style solar plan, or a state rebate and loan program. The right choice depends on the rate and the term matching the payback period - financing a ten-year payback over three years produces negative cash flow even when the system pays for itself eventually.
Key takeaways
- Mortgage funding is cheapest per dollar but stretches the cost over 30 years unless you repay it faster.
- Green personal loans price around 6-9% and match the system life better.
- Interest-free solar plans usually build the cost into a higher system price.
- Match the loan term to the payback period, not to the lowest monthly figure.
The funding options
| Option | Typical rate | Considerations |
|---|---|---|
| Mortgage increase / redraw | ~6.5% | Cheapest rate; repay over ~7 years, not 30 |
| Green personal loan | 6-9% | Term matches system life |
| Solar retailer plan | "0%" | Cost usually built into the system price |
| State loan / rebate scheme | Often interest-free | Eligibility caps and limited places |
Does it pay back?
A $12,000 system saving $1,800 a year has a 6.7-year simple payback. Funded at 7% over 7 years, the repayment is $181 a month - $2,172 a year - against $1,800 of savings. You are $372 a year behind during the loan, then well ahead afterwards.
Batteries lengthen this considerably. A battery roughly doubles the system cost while typically adding less than double the savings, so the payback often runs past ten years unless a rebate applies or you have high evening usage.
What changes the maths most
- Self-consumption. Using power as you generate it is worth far more than exporting it at feed-in tariffs.
- Feed-in tariff, which has fallen substantially and continues to.
- Rebates - federal certificates plus state schemes can cut thousands off the upfront cost.
- Your usage pattern. A household home during the day pays back far faster than one that is not.
Frequently asked questions
Should I add it to my mortgage?
It gives the cheapest rate, but spreading a seven-year asset over a thirty-year loan means paying interest long after the panels have been replaced. If you do it, repay that portion deliberately over about seven years.
Are 0% solar plans genuinely free?
The finance cost is usually built into the system price. Compare the cash price from another installer against the financed price to see the real interest embedded in it.
Does solar add to my property value?
Evidence suggests a modest premium, but do not rely on recovering the full cost at sale. Justify the system on the electricity savings.
Related reading
- Green Car and EV Loans in Australia
- Novated Leases Explained
- Car Loans: Dealer Finance vs Bank vs Broker
Sources
- Solar power and batteries — ASIC Moneysmart
- Small-scale renewable energy scheme — Clean Energy Regulator
Rates checked as at 2 September 2026. Interest rates, lender policies and government schemes change frequently. Figures in this article are illustrative and were accurate at the date shown.
General advice warning: This article contains general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit or financial advice. Consider whether it is appropriate for you and seek advice from a licensed credit representative before acting.
Any interest rate shown is an example only and is not an offer of credit. Where a rate is quoted, the applicable comparison rate is available from the relevant lender and should be considered alongside it.
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