Key points
- The main solar finance options in 2026 are cash, home loan top-ups, CEFC-backed green loans, retailer interest-free plans, energy subscriptions and, in Victoria, the Solar Homes interest-free loan of up to $1,400.
- The federal Household Energy Upgrades Fund has helped lenders such as Brighte, CommBank, ING, Plenti and Westpac offer cheaper green loans. More than $1 billion was made available in two years.
- “Interest-free” plans charge fees and may have a higher price built in. A plan priced $1,000 above cash on $10,000 over five years costs about the same as a 3.8% loan.
- South Australia has no state interest-free solar or battery loan in 2026.
Solar finance lets you install solar panels or a battery now and pay over time. In 2026 your main choices are paying cash, adding it to your home loan, a green personal or home loan, a retailer’s interest-free plan, or a monthly subscription. Each has a different true cost, and the cheapest-sounding option is not always the cheapest. This guide compares them with worked numbers so you can choose with confidence.
What are your solar finance options in 2026?
Rebates come off first. The federal STC discount and the battery discount reduce the price before any finance applies. See our guide to solar and battery rebates in SA and Victoria. What’s left is the amount you need to fund.
| Option | How it works | Watch out for | Best for |
|---|---|---|---|
| Cash or savings | Pay upfront; often the lowest price | Lost interest on savings | Anyone with savings who wants the lowest total cost |
| Home loan redraw, offset or top-up | Use equity at mortgage rates | Paying it off over 25+ years multiplies the interest | Homeowners who repay the extra quickly |
| Green home loan or mortgage sub-account | Discounted rate for energy upgrades (e.g. Westpac, ING, Bank Australia) | Rates and eligibility vary; usually for existing customers | Borrowers already with that lender |
| Green personal loan | Unsecured loan for solar, batteries and electrification (e.g. Plenti, Brighte, CommBank) | Comparison rate, establishment fees | Renovators without mortgage equity |
| Retailer interest-free plan | 0% interest, fixed repayments, arranged by the installer | Account fees and higher finance prices | Buyers who compare cash and finance prices first |
| Energy subscription | Fixed weekly or monthly payment for the equipment | Total cost over the term, ownership terms | People who want a set monthly cost |
| Solar Homes interest-free loan (VIC) | Up to $1,400, repaid over 4 years | Same eligibility as the rebate | Eligible Victorian owner-occupiers and landlords |
What is the Household Energy Upgrades Fund?
The Household Energy Upgrades Fund (HEUF) is a $1 billion federal fund run by the Clean Energy Finance Corporation (CEFC). The CEFC doesn’t lend to households directly. Instead, it co-finances lenders so they can offer cheaper loans for energy upgrades. You apply to the lender, not the CEFC.
According to the CEFC, its current HEUF partners include:
- Brighte, CommBank and Plenti: personal loans, some with discounted or introductory rates. Brighte lends $2,000 to $55,000.
- ING and Westpac: mortgage sub-accounts of up to $50,000 for existing home loan customers.
- Bank Australia: a green mortgage with a reduced variable rate for the first five years. The CEFC notes the CEFC-supported discount is now fully used, though the product is still available.
- Plico: subscription plans (WA, NSW and ACT only).
Eligible upgrades include solar panels, batteries, heat pump and solar hot water, insulation, double glazing, air conditioners, induction cooktops and EV chargers. In August 2026 the CEFC reported more than $1 billion in low-interest loans made available through the fund in two years. Borrowers saved an average of about $570 in interest in the first year. Rates change often, so compare the comparison rate rather than the headline rate.
Are “interest-free” solar plans really free?
Not always. The plan charges no interest, but someone still pays for the credit. Usually the finance provider charges the retailer a fee, and that cost can be built into a higher “finance price”. Moneysmart warns that products advertised as interest-free may charge set-up fees, monthly account-keeping fees and late fees. Applying also shows up on your credit report.
The New Energy Tech Consumer Code (NETCC) adds a layer of protection. Approved Sellers may only offer deferred payment through a provider licensed under the National Consumer Credit Protection Act, or a product the NETCC Administrator has approved. Examples on the approved list include Plenti’s Zero-Interest Payment Plan and the Zelora and Enreal subscription agreements.
Tip: Always ask for the cash price and the finance price in writing, side by side. Like many installers, Solar Beat offers access to interest-free finance, and we’re happy to show you both numbers so you can choose.
Worked example: four ways to fund $10,000
Say your solar and battery cost $10,000 after rebates. The rates and prices below are hypothetical, to show how the comparison works. Use your actual quotes.
| Option | Monthly repayment | Total paid | Cost of finance |
|---|---|---|---|
| Cash | n/a | $10,000 | $0 |
| Interest-free plan, finance price $11,000 over 5 years | $183 | $11,000 | $1,000 (same as about 3.8% interest) |
| Green personal loan at 7% over 5 years | $198 | $11,881 | $1,881 |
| Added to mortgage at 6% over 25 years | $64 | $19,329 | $9,329 |
Three lessons stand out:
- The term matters more than the rate. Mortgage money is cheap per year, but stretching $10,000 over 25 years costs nearly $9,300 in interest. If you use your home loan, set extra repayments so the solar portion is paid off within about five years.
- Interest-free plans are only as good as the price gap. If the finance price is $500 above cash, the plan is like a 1.9% loan. At $1,500 above, it’s more like 5.6%.
- Fees change the answer. Add establishment and monthly fees to every option before comparing.
Are there interest-free solar loans in SA and Victoria?
Victoria: Yes, in a small way. Eligible owner-occupiers and rental providers can take an interest-free loan of up to $1,400 alongside the $1,400 Solar Homes rebate, repaid over four years (about $29 a month). Our Victoria solar rebates guide covers who qualifies after the 1 July 2026 income cap change. Solar Victoria’s separate battery loan is no longer taking applications.
South Australia: No. A $100 million no-interest loan scheme was promised in 2018, but what followed was the Home Battery Scheme, a subsidy with CEFC-backed low-interest loans, which closed in 2022. In 2026, any “interest-free” offer in SA is a private retailer or lender plan.
Will solar pay for its own finance?
Often, but not from day one. Compare your monthly repayment with your expected monthly bill saving. Suppose a system saves you $150 a month and the loan costs $198. You are $48 a month behind until the loan ends, then $150 a month ahead for the rest of the system’s life. A shorter term or a bigger deposit closes that gap. Our solar payback period guide shows how to estimate savings for your usage and tariff. To see how rebates cut the amount you need to borrow, read stacking solar and battery incentives.
Bigger systems need more finance but usually return more. For a family with high daytime use, a 10kW solar system can cover more of the repayment than a smaller one.
Financing solar and batteries for a business
Businesses have more tools: chattel mortgages, equipment leases, green business loans and power purchase agreements (PPAs), where a provider owns the system and sells you the power. The tax treatment differs for each. Small businesses can also use the $20,000 instant asset write-off, which was made permanent from 1 July 2026. See commercial solar tax and depreciation and our solar battery system installation page, and talk to your accountant before choosing.
A checklist before you sign any solar finance
- Compare the comparison rate and the total amount payable, not just the monthly repayment.
- List every fee: establishment, monthly, late payment and early repayment.
- Check the lender holds an Australian credit licence, or that the plan is NETCC-approved.
- Get the cash price in writing so you can see any finance mark-up.
- Never sign finance on the doorstep. If the sale was unsolicited, you have a 10 business day cooling-off period. See our list of solar scam red flags.
Frequently asked questions
Is interest-free solar finance really free?
The plan itself charges no interest, but you may pay establishment, monthly and late fees. The retailer may also charge a higher price when you use finance. Ask for the cash price and the finance price in writing. The difference, plus fees, is the true cost of the plan.
Should I add solar to my mortgage?
It can be the cheapest rate, but only if you repay it quickly. Spread over 25 years at 6%, $10,000 costs about $9,300 in interest. If you use a redraw, top-up or green mortgage sub-account, make extra repayments so the solar portion is cleared within about five years.
Can I get a green loan for a home battery?
Yes. Lenders backed by the CEFC’s Household Energy Upgrades Fund, including Brighte, CommBank, ING, Plenti and Westpac, offer loans or mortgage sub-accounts that cover batteries, solar panels and other energy upgrades. The federal battery discount comes off the price first, so you borrow less.
Is there a government interest-free solar loan in South Australia?
No. As of October 2026, the SA Government doesn’t offer an interest-free solar or battery loan. The old Home Battery Scheme closed in 2022. Interest-free offers in SA come from private retailers and lenders, so compare their total cost carefully.
If you’d like to compare cash and finance prices on a solar or battery system in Adelaide or Melbourne, get a free quote and ask us to show both.
Sources: CEFC – Household Energy Upgrades Fund (accessed Oct 2026); ChannelLife – Household energy fund tops $1 billion in loans (5 Aug 2026); Moneysmart – Buy now pay later services; New Energy Tech Consumer Code – Providing finance under the NETCC (accessed Oct 2026); Solar Victoria – Solar battery loan (updated 16 Apr 2026); RenewEconomy – Interest-free loans for solar and storage for SA households (2018). Loan rates, fees and lender participation change frequently; this is general information, not financial advice. Featured image: Kgbo / Wikimedia Commons, CC BY-SA 4.0.
