How can you make solar affordable with loans and finance
Full independent advice to help you compare solar panel and home battery storage finance options in the UK , including cash, solar loans, and green remortgages, to find the best fit for your home.
By CarbonFree Team. Published 2025-12-04. Last updated 2026-01-20.
Key Facts in 30 Seconds
- Typical cost: £6,000-£12,000 for a 4-6kWp solar system with battery installed in the UK.
- Typical savings: £700-£1,400/year, depending on system size, usage, and energy prices.
- Payback period: 10-15 years for solar-only systems; potentially shorter with battery and smart tariffs.
- Green Remortgage APRs: Typically 4.5%-5.5% (spread over 20-25 years), based on current UK mortgage rules (MCOB).
- Solar Loan APRs: From 6.9%-12.9% (over 3-10 years), for unsecured personal loans.
- Cash-Positive Potential: Many UK homes can achieve monthly energy savings that exceed finance repayments.
- Carbon Reduction: A typical 4kWp system can save over 1 tonne of CO₂ annually.
- Property Value: Solar panels can increase a property's value by up-to 14% (source: Rightmove 2023).
How do UK homeowners make solar panels affordable?
Homeowners in the UK typically fund solar panel installations using one of three primary methods: a cash purchase, an unsecured solar loan, or a green remortgage. Each option presents different financial implications and suitability based on individual circumstances and long-term energy goals.
What are the main ways to fund solar panels in the UK?
- Cash Purchase: This option offers the lowest long-term cost as you avoid all interest payments. With typical solar costs ranging from £6,000 to £12,000 (including battery storage), it's ideal if you have accessible savings and wish to maximise your lifetime return on investment.
- Solar Loans (Unsecured Solar Finance): These are personal loans specifically for home improvements like solar panels. Rates in the UK generally range from 6.9% to 12.9% APR for amounts between £5,000 and £10,000, with terms typically spanning 3 to 10 years. Approval is often fast, making it suitable for solar-only or solar plus battery installations.
- Green Remortgage (Mortgage for Solar Panels): This allows you to add the cost of solar panels to your mortgage, often at a lower interest rate than personal loans. The cost can be spread over 20–25 years, significantly reducing monthly repayments. This option is particularly beneficial for combining multiple green upgrades, such as solar, battery storage, an EV charger, and even a heat pump. In many cases, the energy savings generated can exceed the uplift in your mortgage payment, making the upgrade cash-positive from day one. This is ideal for homeowners planning long-term home improvements. CarbonFree Finance offers an independent comparison service, helping you evaluate these options to determine which one genuinely improves your financial situation. Discover more about green remortgages and loans.
How much do UK solar panel installations and finance options cost in 2024?
Understanding the approximate costs of solar panel systems and their associated financing is crucial for planning your investment. The table below outlines typical installation costs for various system sizes and compares the financial implications of different funding methods. Based on typical UK solar output and installation complexities, these figures represent averages.
What are the typical costs for solar panels in the UK?
| Solar System Size | Panels | Cost Range (Installed) | Annual Savings (estimated) |
|---|---|---|---|
| 3kWp | 6–8 | £4,500–£5,500 | £550–£700 |
| 4kWp | 8–10 | £5,500–£7,000 | £700–£900 |
| 6kWp | 12–15 | £7,000–£9,000 | £900–£1,400 |
Add-ons like battery storage (typically £4,000–£6,000) or EV charging optimisation can significantly alter savings and require detailed modelling to accurately predict returns. Explore our guide on home battery storage.
How do finance options compare for a UK solar panel system?
To illustrate, consider a £6,000 solar panel system:
| Finance Option | Typical APR | Est. Monthly Payment (£6k System over 10y) | Est. Total Cost (over 10y) | Good For |
|---|---|---|---|---|
| Cash | 0% | – | £6,000 | Lowest lifetime cost, immediate equity. |
| Solar Loan | 6.9%–12.9% | £63–£82 | £7,560–£9,840 | Quick approval, solar-only or solar + battery upgrades. |
| 0% Finance* | 0% | £167–£500 | £6,000 | Short-term affordability (usually 1-3 years), if promotional rates apply. |
| Green Remortgage* | ~4.5%–5.5% | £30–£37 | £7,200–£8,880 | Low interest, long-term upgrades (solar+battery+EV+HP). |
*Please note:* For a green remortgage, repayments are typically spread over 20-25 years, making the monthly payment lower than shown for a 10-year term. The total cost shown here is illustrative over 10 years for direct comparison, but the actual total cost would be higher over the full mortgage term due to compounding interest. These are illustrations; actual rates and terms will vary based on lender and creditworthiness.
Worked Example: Can a 3-bed semi in Reading achieve cash-positive solar power?
Consider a typical 3-bedroom semi-detached home in Reading looking to reduce its energy bills and carbon footprint:
- Current Usage: The household uses approximately 3,500 kWh of electricity annually, with occasional EV charging.
- Proposed System: A 6 kW solar panel system (12-15 panels) combined with a 10 kWh home battery.
- Installed Cost: Total installed cost is £15,000 (including battery).
- Saving Forecast: CarbonFree modelling projects an average monthly energy saving of £120.
- Finance Method: The homeowner opts for a green remortgage, adding £15,000 to their existing mortgage.
- Remortgage Cost: With an assumed additional mortgage payment of £95 per month over 25 years at current rates.
- Net Result: The homeowner is cash-positive by approximately £25 per month (£120 savings - £95 mortgage uplift) from day one, in addition to increasing their home's energy independence and value.
Why should you talk to CarbonFree Finance about solar?
We don’t just offer finance; we determine what is genuinely right for your specific home and financial situation. Our approach is holistic and data-driven.
How does CarbonFree provide personalised solar finance advice?
- Do you build a digital twin of my home? Yes, we use your actual energy consumption data, EV charging patterns, solar irradiation specifics for your location, and even local tariff behaviours across seasons. This simulates precisely how solar panels, batteries, and EV charging would perform, providing exact savings projections unique to your home, not generic averages. Find out more about our energy management solutions.
- Can CarbonFree help me choose the right equipment? Many homeowners are unsure whether to add a battery, what system size is optimal (e.g., 4kWp vs 6kWp), how an EV charger impacts economics, or which energy tariff best complements solar and battery storage. Our detailed modelling answers these questions before you commit any funds. Consider exploring our guide on home battery storage.
- Do you specialise in green finance advice? As independent advisers, we comprehensively explain various funding options, including solar loans, unsecured green finance, green mortgages, and remortgaging to fund solar. We clarify the total cost over time versus projected savings and demonstrate pathways to becoming cash-positive from month one. For regulated mortgage advice, we collaborate with qualified advisers within The Right Broker / The Right Mortgage Network. Learn more about green remortgages and loans.
- Can CarbonFree show if I can be better off from month one? For many homes, particularly those integrating solar with battery storage, the monthly energy savings outweigh the additional finance repayment. If remortgaging, we provide a clear breakdown of your old and new mortgage payments, combined with expected energy savings to show your net financial outcome.
- Do you evaluate everything together? You don't need to guess which combination of technologies – solar, battery, EV charging, heat pumps, or tariff optimisation – is best. Our Navigator session models all these elements seamlessly, providing a comprehensive energy strategy.
What is the next step to explore solar and finance options?
Book your Digital Twin & Finance Review with CarbonFree. A 30-minute Navigator demonstration provides:
- A personalised digital twin of your home.
- Accurate savings projections for solar, battery, and EV charging tailored to your usage.
- A comparison of summer and winter performance.
- A clear breakdown of suitable finance options (cash, loan, green mortgage).
- Clarity on whether your investment can make you cash-positive from month one.
Book your Navigator demo today to get started.
Frequently Asked Questions
Can I remortgage to pay for solar panels in the UK?
Yes, many UK homeowners can remortgage to fund solar panels and other energy-efficient home improvements. A green remortgage often offers lower interest rates compared to personal loans and allows the cost to be spread over the longer term of your mortgage, reducing monthly payments significantly. This can make larger investments, like solar panels combined with battery storage or an EV charger, more affordable, and in many cases, the energy savings can exceed the increased mortgage payment. Based on current UK mortgage rules (MCOB), lenders assess affordability for the total mortgage amount.
What are the risks of financing solar panels in the UK?
The primary risks involve interest rates (particularly for personal loans), potential repayment difficulties if financial circumstances change, and the long-term commitment of a mortgage. However, these risks can be mitigated by choosing a reputable lender, understanding all terms and conditions, and conducting thorough financial planning. Market fluctuations in energy prices or solar efficiency could also impact projected savings, though solar technology has proven reliable with long warranties. CarbonFree's modelling helps to account for these variables based on historical UK energy market data.
Is '0% finance' available for solar panels in the UK?
Yes, some solar installers or finance providers offer 0% finance options, typically for a shorter period (e.g., 1-3 years). While this can eliminate interest costs, it often means higher monthly repayments to cover the total installation cost within the promotional period. It's crucial to understand the terms and conditions, including any potential charges if the balance isn't cleared within the 0% period, and compare it against long-term green remortgage benefits. These offers are less common for larger, more comprehensive green home upgrades.
How do solar panels affect my home's EPC rating?
Installing solar panels typically improves your home's Energy Performance Certificate (EPC) rating. A higher EPC rating can increase your property's value and make it more attractive to buyers. According to UK government guidelines, energy efficiency improvements like solar PV are directly factored into the EPC assessment, moving homes towards higher bands (e.g., from D to B or C).
Summary for Busy People
- Finance UK solar panels through cash, solar loans, or green remortgages.
- Green remortgages often provide lower interest rates and longer repayment terms, enabling cash-positive outcomes.
- CarbonFree offers unique energy modelling to provide accurate, personalised savings projections for your specific home.
- Combine solar with battery storage and EV charging for optimal savings and energy independence.
- Book a CarbonFree Navigator demo for a tailored digital twin, savings analysis, and finance options review.
Important Information
All finance figures shown are illustrations only. Regulated mortgage advice is provided by qualified advisers within The Right Broker / The Right Mortgage Network. Your home may be repossessed if you do not keep up repayments on your mortgage. Loan approval depends on credit and lender criteria.
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