Solar Finance Options
Flexible ways to fund your solar installation in 2026 — from green loans to grant-funded options, with realistic monthly payments vs savings.
Finance options at a glance
There are several ways to fund a solar installation. The best option depends on your financial situation, eligibility, and how quickly you want to see a return.
- Warm Homes / ECO4 grant – fully or partly funded for eligible low-income households
- Green loans – specialist rates from 4–7.2% APR over 3–20 years (e.g. Tandem Bank, Barclays)
- Solar-specific loans – from 5.9% APR via providers like Kandoo (£3,000–£15,000)
- 0% finance – limited availability through select installer partnerships (12–24 month terms)
- Cash purchase – pay upfront (£5,500–£12,000) for the lowest overall cost and fastest payback
Is solar finance worth it?
With a typical 4 kW system saving £500–£1,200 per year and monthly loan repayments of around £80–£150, many households find that solar is cash-positive from month one — your energy savings exceed your loan payments.
Even at 6–7% APR, the total savings over a 25-year panel lifespan significantly exceed the total cost of the loan. And once the loan is paid off, every penny of energy saving is pure profit.
What to watch out for
Solar finance is regulated by the FCA, but you should still do your due diligence before signing anything:
- Always check the total amount repayable, not just the monthly payment
- Ensure the finance agreement is FCA-regulated with clear terms
- Avoid any scheme that requires large upfront deposits (never more than 25%)
- Read the cancellation and early repayment terms carefully
- Don't sign finance before your property's suitability for solar has been confirmed
- Be cautious of 'too good to be true' savings projections used to sell finance
Related pages
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