Even with the big push by the federal government for the uptake of solar, getting your solar system financed can still be a challenge. If traditional green loan lenders say no, and your bank won’t help, All hope is not lost.
Financing a solar system through non-bank lenders or property-equity options is growing in popularity. They look at project value & added equity rather than strict credit or income criteria.
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Solar Financing Options in Australia
Homeowners can fund solar systems through non-bank lenders, buy-now-pay-later programs, or equity-based loans that offer faster approvals and flexible eligibility.
Green Personal Loans and Finance Plans
Some credit unions and fintech companies offer unsecured personal loans marketed as green energy loans. These loans rely more on income stability than collateral and usually have repayment terms of three to seven years.
Interest rates can be higher than mortgage rates, but approvals are often same-day — ideal if you’ve already chosen a solar installer and just need quick finance.
Specialist Non-Bank Lenders
Non-bank lenders are not tied to the big four banks and can offer flexible approval criteria. They often base their assessment on the property value or overall equity position rather than the credit score alone.
Non-bank lenders — including groups like The Mortgage Agency — often take a more flexible approach to assessing solar-related finance applications, considering equity and affordability rather than rigid credit scores.
Equity Release or Refinancing
If you have built up equity in your property, refinancing or a top-up loan can be one of the cheapest ways to fund a solar system.
By tapping into home equity, you access lower mortgage rates, although the debt is spread over a longer period. It’s best suited for homeowners planning to stay put for several years.
Solar Installer Payment Plans
Many accredited installers now offer in-house payment options or partner with third-party finance providers.
These plans can start with zero deposit and include repayments over two to five years.
Always check if the system cost includes interest or if the plan is fee-free.
You can learn more about incentives and system costs on our Solar Rebate Guide and Solar Panel Cost pages.
Combining Rebates and Non-Bank Finance
Government solar rebate programs can make non-bank finance more affordable by reducing the upfront amount you need to borrow.
For example, a homeowner in NSW can combine a state rebate with a private-lender loan to cover the remaining balance.
If you’re in Victoria, you can also apply for an interest-free loan through the Solar Victoria program — details are on our Solar Battery Rebate page.
When structured correctly, your loan repayments can be roughly offset by electricity savings, effectively making the system cash-flow neutral from the start.
Why Traditional Banks Decline Solar Loans
Banks often reject solar finance applications because of strict lending rules, unstable income, or limited property equity.
Most major lenders assess solar like any other consumer loan — they’ll check your credit score, income verification, and debt-to-income ratio. What they don’t look at is the value the system actually adds to your home in the process.
A study by the University of Western Australia analysed thousands of home sales across Perth and found that properties with solar panels sold for 2.3% to 3.2% more than comparable homes — adding roughly $16,000 to $22,000 to the median house price. The research concluded that homeowners typically recover the full cost of their solar investment upon resale, with additional gains possible when feed-in tariff contracts are included.
What to Check Before Signing Any Solar Finance Deal
Always review the fine print before signing any finance agreement.
Quick checklist:
- Confirm the interest rate and the comparison rate.
- Ask about early payout fees or balloon payments.
- Ensure the lender is regulated under ASIC and holds an Australian Credit Licence.
- Make sure your installer is SAA-accredited and uses approved products.
You can find accredited professionals through our Solar Installers Directory.
FAQs
Can I get solar with bad credit?
Yes. Some non-bank lenders assess your property equity and repayment capacity instead of focusing solely on credit score.
Is a solar system considered a secured asset?
In many cases, yes. Lenders may secure the loan against your property or the solar equipment itself.
Can I use the solar rebate as a deposit?
Not directly, but the rebate reduces the total cost, which lowers the amount you need to borrow.
