Solar Loans
Not eligible for a full grant? Solar loans offer an affordable way to install panels and start saving — with monthly payments often lower than your energy savings.
What is a solar loan?
A solar loan lets you spread the cost of a solar panel installation over several years. Unlike grants, loans are available to all homeowners regardless of income — and the energy savings often cover or exceed the monthly repayments, making solar cash-positive from month one.
Solar loan options in 2026
Green and solar-specific loans are now widely available from high-street banks and specialist providers:
- Specialist solar loans (e.g. Kandoo): from 5.9% APR, £3,000–£15,000, 3–15 year terms
- Barclays Green Home Loan: 6.9% APR, £1,000–£35,000
- HSBC Green Loan: 7.2% APR, £5,000–£25,000
- Ethical/green lenders (e.g. Tandem Bank): from 4–6% APR, terms up to 20 years
- Some installers offer short-term 0% introductory finance (12–24 months)
- You own the system from day one and benefit from all energy savings immediately
Is a solar loan right for me?
If you don't qualify for a Warm Homes or ECO4 grant but still want to benefit from solar energy, a loan is often the smartest option. With a typical 4 kW system saving £500–£1,200 per year and monthly loan repayments of £80–£150, many homeowners are cash-positive from the first month.
Once the loan is paid off (typically 5–10 years), your electricity savings are pure profit for the remaining 15–20+ years of your panel's lifespan. The total return on investment typically exceeds 300–400%.
Related pages
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Loan terms depend on your provider and creditworthiness. All solar finance should be FCA-regulated. Always read the full terms before committing.