Solar panels are an excellent way to cut your electricity costs, your reliance on the grid, and your emissions – but the price tag is a barrier for many households.

Solar panel loans make it possible to save money on your energy bills and shrink your carbon footprint without paying a large upfront cost.

In this article, we’ll run through how solar panel loans usually work and how they differ from paying for solar upfront.

If you’re wondering how much a solar & battery system could save you, just answer a few quick questions below and we'll provide an estimate for you.

What is a solar panel loan?

A solar panel loan is a financial agreement that allows you to own solar panels (and often a solar battery) without having to pay the entire cost upfront.

Instead, you’ll pay a monthly amount for a set number of years – but how much you pay (and how long you pay it for) will vary depending on your chosen provider.

Some companies also ask customers to pay a portion of the sum upfront, before monthly payments begin.

Solar panel loans represent an alternative route to green energy for households that can’t afford to part with thousands of pounds at a time.

About half of UK households have less than £5,000 in savings , so the average cost of a 4.5kWp solar & battery system – £11,307 – is simply too much for many.

And it makes sense that homeowners still want to switch to solar despite the upfront cost, since industry experts have said energy prices will rise in the coming years.

In October 2025, Octopus Energy’s Rachel Fletcher said domestic energy bills will likely increase by 20% over the next four years – even if wholesale prices go down.

And in February 2026, Centrica chief executive Chris O’Shea predicted that electricity will be more expensive in 2030 than it was after Russia invaded Ukraine in 2022, which deepened the pre-existing energy crisis.

Different types of solar panel loan

‘Solar panel loan’ is a catch-all term for various different forms of solar panel finance.

Here are all the main options you can choose from:

Another type of solar panel loan is to pay upfront with a credit card.

However, since the average limit in the UK is between £3,000 and £4,000 – and solar & battery systems cost £11,307, on average – this solution is unlikely to work for many.

1. Installer-partnered financing

This is when a solar installer teams up with a finance provider to make it easier for customers to get a solar panel loan.

The installer will either introduce customers to its finance partner, or broker the loan with the customer on behalf of its finance partner.

For example, E.ON Next provide loans through HomeServe Finance Limited, and So Energy provide loans through Tandem Bank.

2. Government loan

These are loans provided by the government (via a financial institution) to UK households, for them to spend on renewable home improvements like solar panels.

However, the only government-funded solar panel loan available at the moment is Green Homes Wales, which offers loans of up to £25,000 – but is only open to homes in Wales.

The £15 billion Warm Homes Plan was announced in January 2026, with billions of pounds set aside for interest-free or low-interest solar loans – but other details were lacking.

It’s not clear when the scheme will begin, or what the eligibility criteria will be.

We’ll discuss this in more detail near the bottom of the article.

3. Solar subscription

Here at Sunsave, we offer the UK’s first solar subscription, which means you can switch to solar with no upfront cost, and instead make fixed monthly payments for 20 years.

Sunsave Plus is fundamentally different to a standard solar panel loan. While you’re paying back the cost of the system, you’ll also benefit from a full maintenance support package that includes free replacement parts.

And by spreading your payments across 20 years, you can save more than you spend.

We’ll go into more detail further down the page – or check out our guide to solar subscriptions.

4. Green mortgage

A green mortgage provides customers with a financial incentive to either buy an energy-efficient home, or take steps to boost its energy efficiency after moving in.

Eligible homeowners can secure a lower interest rate on their mortgage, receive a cashback payment, or get an interest-free loan.

Some examples include Co-op’s offer of at least £5,000 of additional borrowing, Nationwide’s £5,000-£20,000 of interest-free borrowing, and Coventry Building Society’s £25,000 of additional borrowing alongside a lower interest rate.

For more information, read our guide to green mortgages and greener home rewards.

How much does a solar panel loan cost?

There are multiple solar panel loans that come with no upfront cost, which could be appealing if you don’t have the money on hand to switch to solar with one lump sum.

This would also give you all the benefits of going solar – like more energy independence, export income, access to time-of-use tariffs, virtual power plants, and potentially increasing your property’s value – without needing a load of money in the bank.

The overall cost of a solar panel loan will usually be more expensive than paying upfront due to interest payments, but it's worth looking at the bigger picture.

If the loan spreads out the cost of your system over an especially long period of time, this could mean your energy bill savings exceed your monthly payments.

If you take out a shorter loan, you’ll generally have to pay a much higher monthly rate, albeit for less time.

What does ‘APR’ mean?

APR stands for Annual Percentage Rate, which shows you how much you’ll pay per year, as a percentage of the amount you'd be borrowing.

You should compare different loans by their APRs, not their interest rates, since an APR involves all fees involved in the loan – including the interest rate.

It’s the best way of comparing apples to apples, and there’s a simple way of deciding which APR is better: the lower it is, the lower the cost of borrowing.

However, there are lots of other factors to consider before making your final decision, not least what you’re actually receiving for your money (more on this further down).

Can you get interest-free solar panel loans?

You can get interest-free solar panel loans, which may sound very appealing – but you should keep a few things in mind while considering them.

Firstly, some lenders will offer 0% interest while also hiking up the price of the system, so the overall cost will be just as high – just structured in a way that initially seems more enticing.

Secondly, most interest-free loans are short – often lasting just one to three years – which means your monthly payments will be extremely high, so make sure you can afford them.

And if a loan is this short, any maintenance support it offers won’t mean much, since it’ll only last for the length of your contract.

After one to three years, you’ll be left with the cost and hassle of replacing your battery and inverter, which is likely to be necessary after about 10-15 years.

How long does a solar panel loan last?

Solar panel loans tend to range from one or two years to 10 years.

Some providers give you the option of choosing your own repayment period, although this will typically still fall within this range.

Most solar panel loans offer the ability to settle early, but it’s important to check if your provider will charge you a fee for doing this.

Sunsave Plus, the UK’s first solar subscription, has a 20-year term and allows for full or partial early repayment without charging any fees or penalties. Head further down the page to learn more.

Are you eligible for a solar panel loan?

When assessing your eligibility criteria for a solar panel loan, lenders will focus on two key things.

1. Affordability – to check the loan is sustainable for your budget, which includes reviewing your income, employment and expenditure. 
2. Creditworthiness – to check the risk of lending to you, which includes reviewing your credit history.

A lender will check both of these things using their own data sources (such as credit agencies), but if they’re unable to verify something then they will reach out to you for extra documents. 

To apply for a solar panel loan you will also need to be at least 18 years old, be a UK resident, and own the property that you want to put the panels on.

How do solar panel loans affect your credit score?

Like any other loan, solar panels loans can affect your credit score.

If you keep up with your payments, you’ll build up a record of being a good payer, which can help improve your credit score. Naturally, if you miss payments, this could lower your score.

Your lender will regularly report your payment history to credit agencies, so your score will be affected either way.

Most lenders also perform a soft credit check before deciding whether to offer you a loan. This is a quick, common eligibility assessment that won’t affect your credit score.

However, lenders also carry out a hard credit check shortly before issuing your loan, which will cause a slight dip in your credit score. This is normal and temporary.

How to choose a solar panel loan

When you’re weighing up the pros and cons of different solar panel loans, there are several important factors to consider.

Here are the main points to bear in mind while you’re talking to lenders:

1. Look for FCA regulation
2. Avoid roof leases
3. Look for fixed fees
4. Look for maintenance support
5. Avoid early repayment fees
6. Secured or unsecured?

1. Look for FCA regulation

First and foremost, you should ensure the company is fully regulated by the Financial Conduct Authority (FCA).

If the organisation is acting as a broker for a third-party lender, make sure you get their FCA number and check the FCA register, as this will show their permissions. You should then also check that the lender is FCA-regulated. 

Sunsave is fully authorised and regulated by the FCA, and so our Consumer Duty requires us to deliver good outcomes for our customers.

In practice, what this means is that we sufficiently understand our consumers’ needs, we can demonstrate fair value between the price our consumers pay and the benefits they receive, our content is clear and not misleading, and that our consumers’ needs are fulfilled throughout the lifetime of our product.

2. Avoid roof leases

Solar panel loans sometimes involve customers leasing their roof (or airspace) to a company, which effectively means giving up control of your roof. These are sometimes known as 'rent-a-roof schemes'.

Some roof leases force you to get permission from the company to make changes to your home – like an extension, loft conversion, or new roof – and to reimburse them for any missed export payments or lost electricity generation that happens because of building work.

It can also affect your chances of selling your home. Some mortgage lenders are wary of roof leases, as it may prevent them from repossessing the property in the event of a mortgage default.  

You may also find some homebuyers avoid properties with roof leases, especially if they’d ideally like to make changes to the home in future.

The company will own your solar installation, which can sometimes mean missing out on hundreds of pounds in export payments every year.

And given how many people signed solar roof lease contracts in the 2010s, there are still people now who are trapped in these agreements for many years.

It’s also worth noting that some companies that offer roof leases aren’t regulated by the FCA, which means they don’t have to meet the FCA’s high standards when it comes to treating customers fairly.

For more information, read our guide to why Sunsave Plus does not require a roof lease.

3. Look for fixed fees

It’s important to make sure that your solar panel loan comes with a fixed interest rate, which means your monthly payments will be the same for the entirety of your contract.

If your loan has a variable interest rate, this makes it harder to plan your budget and can result in you paying considerably more by the end of your loan.

With Sunsave Plus, monthly fees are completely fixed for the full subscription term, which protects you from energy bill inflation.

4. Look for maintenance support

Maintenance support can be crucial in ensuring your solar & battery system continues functioning at its full capacity – or indeed, keeps working at all.

For example, a solar installation can only produce usable electricity if the inverter is doing its job – and a 2023 study by Bern University of Applied Sciences found that 34% of inverters fail by year 15.

This aligns with what you see in the market today, where the majority of string inverters have a standard warranty of about 10-12 years.

Batteries are also a key part of a system. With them, you can use more of the electricity your panels produce, and benefit from the best export tariffs, time-of-use tariffs, and virtual power plants.

That’s why about 94% of new solar panel installations in the UK include a battery, according to data from Flexi-Orb and EPVS – but battery lifespans are generally around 10-12 years.

When inverters and batteries start degrading significantly, it can be difficult for owners to spot the problems unless they’re trained professionals.

And once you do realise something’s wrong, the cost, hassle, and time it takes to find and hire a local engineer will compound the losses you’ve already made from your system not working properly.

It’s therefore vital to look for a loan that includes maintenance support, to avoid this major hidden cost of going solar.

Issues with the panels are less common, but if something does go wrong – from improper installation to birds damaging the wiring – you’ll also want it fixed as soon as possible.

Every Sunsave Plus system is covered by the Sunsave Guarantee for the length of your subscription. This includes 24/7 monitoring, maintenance, a free battery upgrade, a free replacement inverter if necessary, and downtime cover.

Your system will also be insured by Aviva against damage, fire, and theft. You can learn more about the Sunsave Guarantee here, and further down this page.

5. Avoid early repayment fees

If you pay off your loan before the end of your contract, some providers may charge you an early repayment fee.

Fortunately, there are companies that’ll allow you to conclude your contract whenever you want, as long as you pay the remainder of the amount you borrowed.

Just make sure to check any provider’s terms and conditions to find out about its early repayment policy.

If you pay up early with Sunsave Plus, you won’t incur any fees, charges, or penalties.

However, if you do make a full early repayment, you’ll no longer be covered by the Sunsave Guarantee.

6. Secured or unsecured?

Secured loans are backed by an asset you own, like your home, whereas unsecured loans aren’t made with any collateral. Instead, they simply rely on your ability to pay back the loan.

Since they involve the lender taking a bigger risk, unsecured loans usually come with higher interest rates.

Neither of these options are inherently better or worse, but it’s important that you look into what they would both entail, and which one would suit you more.

Sunsave Plus vs a traditional solar loan

Sunsave Plus is a solar subscription, so it’s fundamentally different to a standard solar panel loan. While you’re paying back the cost of the system, you also benefit from a full maintenance support package that includes free replacement parts.

And by spreading your payments across 20 years, you can save more than you spend. 

Here’s a little more detail.

The Sunsave Guarantee

Your solar & battery system will be protected by the Sunsave Guarantee, so you can rest assured your system will keep performing for at least the next 20 years.

The Sunsave Guarantee will provide you with 24/7 monitoring, maintenance, a free battery upgrade, a free replacement inverter if necessary, and downtime cover.

Your system will also be insured by Aviva, meaning it’ll be fully covered against damage, fire, and theft.

We know that uneasiness about maintenance can be a key sticking point for anyone who isn’t sure about solar. A 2021 government study found that 55% of people in the UK who don’t want solar panels attribute their reluctance to maintenance concerns.

More money in your pocket

Sunsave Plus is also an investment in a cash-generating asset – your solar & battery system will immediately start saving you money on your energy bills, and make you additional income from all the electricity you export to the grid.

In many cases, your combined energy bill savings and export income can exceed your fixed monthly payment, meaning your subscription actually results in a net saving – an instant, clear return on your investment.

And even if you don’t see net savings in the first year, it’s possible that you’ll start to see them after. Electricity bills rose by 5.5% per year on average between 2000 and 2020, and, whilst nobody can predict the future, it’s possible that this historical trend will continue.

But while energy bills rise, your payment to Sunsave will remain absolutely fixed for the full term.

To read all about Sunsave Plus customers who are saving money, check out our reviews page.

Flexible payments

What’s more, Sunsave Plus is flexible, allowing you to make a full or partial early repayment at any point with no penalties. In the case of a partial early repayment, this will reduce your subscription term and keep your monthly fee the same.

If you make a full early repayment, you’ll no longer be covered by the Sunsave Guarantee.

Sunsave Plus will show on your credit history as a personal loan. To learn more, check out our FAQs.

Are there government loans for solar panels?

There are currently no government loans available for solar panels in England, Scotland, or Northern Ireland.

The sole government-funded solar loan in the UK right now is Green Homes Wales, which is only available to homeowners in Wales. To learn more, read our guide to solar panel grants.

The Warm Homes Plan, which was announced in January 2026, has set aside £2 billion to fund low-interest or interest-free loans for those who can afford them – but the government hasn’t revealed the eligibility criteria or start date yet.

The government’s Green Deal used to provide loans for solar panels, but this scheme ended in July 2015.

Are solar panel loans worth it?

Solar panel loans can benefit households that aren’t able to afford the steep upfront cost of a system. You can instantly start saving on your electricity bills, exporting excess electricity to the grid, and reducing your carbon emissions - all for no (or little) upfront cost.

However, with many solar panel loans your monthly payments could still be unaffordable, and may come with unexpected maintenance costs. That’s where Sunsave Plus comes in. 

Our solar subscription is spread across 20 years, which keeps your monthly payments affordable and means you could save more than you spend.

Your system is also protected by the Sunsave Guarantee for the full term, so you’ll have 24/7 monitoring and maintenance support without you having to lift a finger.

To sign up for Sunsave Plus and find out if you’re eligible, enter your details below.

Solar panel loans: FAQs