Calculate Your Payments
Monthly Payment
£87
Net Monthly Cost
£29
Payment minus energy savings
Total to Repay
£10,450
Total Interest
£2,950
Payback Period
10.7 years
25-Year Net Benefit
£7,050
Financing Options Compared
Pay Outright£5,000 - £12,000 upfront
£5,000 - £12,000 upfront
Pay the full cost upfront from savings
Pros
- +No interest payments
- +Highest overall savings
- +Own system immediately
- +Simplest option
Cons
- -Requires large upfront sum
- -Ties up capital
0% Finance12-24 months interest-free
12-24 months interest-free
Interest-free credit offered by some installers
Pros
- +No interest charges
- +Spread cost over time
- +Own system from day one
Cons
- -Limited availability
- -Usually shorter terms (1-2 years)
- -May require good credit score
Solar Loan5-15 year terms, 5-10% APR
5-15 year terms, 5-10% APR
Personal loan or green home improvement loan
Pros
- +Fixed monthly payments
- +Longer repayment terms
- +Green loans may have lower rates
- +Own system from day one
Cons
- -Interest adds to total cost
- -Credit check required
- -Monthly commitment
Remortgage3-5% interest over mortgage term
3-5% interest over mortgage term
Add cost to mortgage or take equity release
Pros
- +Lowest interest rates
- +Longest repayment period
- +Small monthly increase
Cons
- -Fees and legal costs
- -Extends mortgage term
- -Uses home equity
- -Takes time to arrange
Tips for Financing Solar
Compare total cost, not just monthly payments
A lower monthly payment over a longer term often means paying more interest overall.
Ask installers about 0% finance deals
Many installers offer interest-free credit, especially for larger systems. Always ask what's available.
Check green loan schemes
Some banks offer lower rates for home energy improvements. Building societies often have green mortgage products.
Consider the payback period
If your loan term is shorter than the payback period, you'll be "cash positive" once the loan is paid off.