Solar panel financing from Solgen Energy Group can be an expensive yet worthwhile investment. While they can cost up to $15,000 – plus extra if you’re getting a battery, too – they generally pay off after just a few years and can even end up making you a profit if you sell excess energy to the grid.

If you’re unable to pay for your solar panel financing upfront, don’t fret – there are plenty of other ways to pay! This article explores the payment options available to choose from and the benefits and drawbacks of each.

Green loans

Some institutions offer unsecured personal loans to those buying environmentally-friendly products such as hot water systems and solar panel financing. These green loans tend to have lower interest rates and fewer fees than regular personal loans. The only downside to these loans is that they can be hard to acquire – they tend to have strict eligibility requirements such as a good credit score.

Personal Loans

Personal loans offer a safe option for those looking to get solar panel financing. Whilst some lenders may charge a high interest rate, it’s possible to shop around to find a better deal – although high interest rates may encourage you to pay off your loan quickly, which can potentially save you money. It is easier to get a personal loan than it is to get a green loan.

Interest-Free Loans

Interest-free loans might sound appealing, but in reality whilst you aren’t paying interest, you’re paying a higher system price – typically around 15-25% higher. This is to ensure that the company is covering their merchant fees. This means that customers end up paying a lot more than they would otherwise. However, it is a last option for people in need of solar panel financing who are ineligible for a cheaper personal loan.


Leasing involves agreeing to have your system provided and installed without any upfront charges. You then pay it off over a fixed period of time. The difference between leasing and a regular loan is that if you’re leasing, you don’t own the system until it’s fully paid for. If you want to move home you will be required to pay the outstanding balance, since it is difficult to move the equipment around. Be cautious of high interest rates, which tend to be higher than personal loans.

Add to mortgage

Solar panel financing using your home mortgage may be an option since the current mortgage rate is low. However, putting yourself in more debt risks having you pay more in the long-run due to the length of time it takes to pay off your mortgage. Only consider this option if you have a strong awareness of your monetary situation and/or have received proper monetary advice.

Power purchase arrangements (PPA)

PPA involves having the equipment installed on your roof free of charge. In exchange, the operator remains owner of the equipment and you simply pay for the energy it generates – at a rate lower than off the grid rates. Whilst PPA has the potential to save you money, it’s important to be aware that any energy you do not use or store will be fed into the grid for a lower feed-in tariff.

Government Loans

While there are some rebates available, the Australian Government stopped making loans available to small business owners and those in residential properties back in 2010. However, rising energy prices are leading some state governments to reconsider introducing loans. In Queensland, for instance, the government has declared a $40 million no interest loan system for those in need of solar panel financing.