technology · Equipment & asset finance
Solar system finance
Commercial solar is one of the few purchases where the savings can exceed the repayment straight away. We check whether that is true for your usage before you commit.
What is solar system finance?
Solar system finance is funding for a commercial solar installation including panels, inverters, mounting and sometimes battery storage, secured against the system or supported by the business. Australian businesses with high daytime energy use often find the savings exceed the repayment from the first month.
Commercial solar works best for businesses that consume power during daylight hours: manufacturers, cold storage, workshops, clinics, childcare centres and retailers. If your load profile matches the generation curve, self-consumption is where the savings come from. Exporting to the grid earns a fraction of what you pay to buy power, so oversizing a system for a business that closes at three in the afternoon rarely pays.
Financing is what makes the timing work. A system with a four to six year payback, funded over five to seven years, often produces a net positive cash position from the start because the reduced electricity bill exceeds the repayment. That only holds if the system is sized correctly, so it is worth having an installer model your actual interval data rather than accepting a generic proposal.
Solar system finance at a glance
| Typical price range | $15,000 – $500,000 |
|---|---|
| Finance term | Up to 84 months |
| Useful life | About 25 years |
| New or used | New installations only. Panels typically carry 25-year performance warranties while inverters are usually warranted 10 to 12 years and will need replacing within the panels’ life. |
| Indicative rates (Equipment loan) | 6.9% – 16% p.a. · rate history |
| Finance structures | Equipment loan (recommended), Chattel mortgage, Secured business loan |
How lenders assess solar system finance
Solar on a building you own is straightforward to fund, often through equipment finance or a secured business loan. Solar on leased premises is harder, because the system becomes a fixture the lender cannot easily recover, so terms are usually capped by the lease length. Small-scale technology certificates or large-scale generation certificates reduce the upfront cost and are typically applied at the quote stage. Battery storage adds cost and lenders assess its payback more conservatively than panels alone.
Before you buy
- Match system size to your daytime load rather than your total bill; exported power earns far less than power you use yourself.
- Confirm whether the quote is before or after STC or LGC rebates, as the difference is substantial.
- Budget for inverter replacement around year ten to twelve; panels last far longer than the electronics behind them.
Commonly financed
Fronius Symo and Tauro inverters · SMA Sunny Tripower inverters · Jinko Tiger Neo panels · Trina Vertex panels · Tesla Powerpack and BYD commercial batteries
Estimate solar system repayments
- Number of repayments
- 60
- Balloon at end of term
- $51,600
- Total interest (est.)
- $78,197
- Total repaid (est.)
- $336,197
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is solar system finance?
Solar system finance is funding for a commercial solar installation, secured against the system or the business. Terms commonly run 60 to 84 months, and where the premises are leased the term is usually capped by the remaining lease period.
What are STCs and LGCs?
Small-scale technology certificates and large-scale generation certificates are Australian renewable energy incentives that reduce the cost of an eligible solar installation. They are usually assigned to the installer and shown as a discount on the quoted price rather than paid to you later.