Solar Panel Funding & Financing in the UK (2026 Guide)

More UK homeowners are turning to solar panels as a smart way to fight rising energy bills, gain independence from the grid, and reduce their carbon footprint. It’s an investment that can pay off over time — but let’s be honest: the upfront cost can still feel like a major roadblock.

The good news? Paying for solar has become far more flexible. From spreading the cost with loans or monthly payment plans to saving through group-buying schemes like Switch Together, there are now practical ways to make solar power more affordable.

This guide breaks down your options — how homeowners are paying for solar in 2026, how to compare your choices, and which route might make the most sense for your budget.

This content is for general information purposes only. It does not constitute personalised financial advice or a financial promotion as defined under the Financial Services and Markets Act 2000. Solar Together does not offer or arrange loans or mortgages, and we do not endorse or recommend any specific financial products or providers. Always seek impartial, FCA-authorised financial advice before making decisions about loans, mortgages, or financial arrangements.

This article is published by Switch Together to help homeowners understand their options. While we aim to provide impartial information, please be aware that Switch Together may be one of the schemes referenced.

If You’re Paying for Solar Panels: Your Main Options Explained

If you’re considering solar panels, there are three main ways most UK homeowners pay for their system in 2026:

1. Paying upfront with savings

2. Spreading the cost through loans or installer finance

3. Reducing the price through group-buying schemes

Each option has pros and cons — and the right choice depends on your finances, risk tolerance, and long-term plans.

Paying in Full (If You Can)

If you have savings available, paying upfront is usually the most cost-effective option over the long term.

Why homeowners choose this:

• No interest or finance charges

• You own the system outright from day one

• You start saving on energy bills immediately

• Some installers offer discounts for full payment

Things to check:

• Installer reputation, warranties, and aftercare

• Whether battery storage is worth adding now or later

Finance Your Solar Panels

Some lenders offer loans or mortgages for eco-home improvements. These may include interest-free periods or incentives — though terms vary. It’s important to compare offers and seek independent financial advice. To verify a lender or adviser’s FCA authorisation, visit the FCA Register.

Financing Options for Solar Panels

Don’t worry if grants aren’t an option. There are lots of ways to finance solar panels that spread the cost over time.

Green Loans & Green Mortgages: Are They Worth It?

Many banks and lenders offer special loans designed for eco-friendly home improvements, including solar panels. Before you sign up, here’s what to keep in mind:

• Check the Interest Rates and APR Carefully
  Some lenders may offer loans for eco-friendly home improvements with promotional interest rates, such as 0% for an introductory period. However, these are limited-time offers and may be followed by standard interest rates. Always compare the total cost of borrowing (APR) and consult an authorised adviser before proceeding.

• Look at Loan Terms
  How long is the loan for? Shorter loans mean higher monthly payments but less interest overall, while longer loans reduce monthly costs but can add up more in interest. Find a term that fits your budget comfortably.

• Consider Early Repayment Options
  Can you pay off the loan early without fees? This flexibility can save you money if you get extra funds later.

• Compare Green Mortgages vs Personal Loans
  Some green mortgages include incentives such as cashback, but these vary widely. Personal loans can be faster but may have higher rates. Carefully check terms, conditions, and eligibility criteria with the lender or a qualified financial adviser.

• Partnered Installer Schemes
  Some lenders work with trusted solar installers to offer discounts or simplified quotes. This can take the guesswork out of shopping around, but always check reviews and make sure the installer fits your needs.

Council-Backed Loans: Affordable Solar Panel Financing

Some council-backed schemes work with lenders who offer fixed-rate loans at lower interest rates than typical commercial options. These may have additional consumer protections, but they’re still financial agreements and should be reviewed carefully. It’s an option for households who want to invest in solar but need support to spread the cost. Visit your council’s website to see if a loan scheme is available in your area.

Before taking out any loan or mortgage, check that the lender is authorised and regulated by the Financial Conduct Authority (FCA). You can verify this at register.fca.org.uk.

Not Sure a Bank Loan is for You? Here’s What Else to Consider

If the bank route feels overwhelming or not quite right, here are other financing paths many UK homeowners take:

1. Solar Panel Finance from Energy Suppliers

Energy providers offer in-house financing when you buy solar panels from them.

• Pros: Often come with 0% interest deals over 12–36 months.

• Cons: You're usually tied to their specific equipment and installers.

Buyer’s tip: Ask about the length of the warranty, installer certification (like MCS), and what happens if you sell your house during the repayment period.

2. Remortgaging to Fund Solar

Some homeowners choose to release equity from their mortgage to pay for solar upfront.

• Pros: Likely to offer a lower interest rate than a personal loan.

• Cons: You're extending your mortgage term and increasing your total repayment.

Good if: You’re already planning to remortgage or make home improvements and want solar included in the package.

3. Using Savings (If You Can)

This is still the most cost-effective route. No fees, no interest, and you can start saving on your energy bills right away.

Plus: Some installers offer a small discount if you pay in full.

Final Advice Before You Commit to Financing

• Compare like-for-like quotes. Don’t just go with the first installer linked to a bank or supplier — shop around to see how their price and warranties stack up.

• Understand repayment terms. Look beyond monthly payments. Ask: “What’s the total I’ll repay, and is there a penalty for early repayment?”

• Check if you can claim VAT relief. As of 2025, VAT on solar panel installations in the UK is 0% — but this only applies to supply and install bundles, not separate purchases.

Still not sure where to start?

Switch Together makes it easy to join a trusted, group-buying scheme for solar panels and battery storage. Register your interest today and find out how much you could save.

How Can You Pay for Solar Panels? Your Options Explained

The good news is that solar panels can still be affordable. From personal savings to green loans and buy-now-pay-later schemes, there are flexible ways to spread the cost and make the switch to solar work for your budget.

These are provided at the supplier’s discretion and may be subject to terms, credit checks, or eligibility requirements. Always check directly with the provider.

Here’s a breakdown of the main ways UK homeowners are paying for solar panels in 2026 — and how to figure out which one’s right for you.

Pay a Deposit, Then Spread the Rest

Many installers let you secure your system with a 10–20% deposit, then spread the rest of the cost over a few months or years. This option works well if you don’t have the full amount upfront but want to get started.

Why choose this?

• You can get installation booked in with a relatively low initial payment

• Ideal for people who expect income or savings to come in soon

• May offer more flexibility than traditional loans

Look out for:

• Whether the remaining payments are interest-free

• Any admin or setup fees

• Payment schedule and whether it works with your budget

Pay in Full (If You Can)

If you’ve built up savings, paying the full amount upfront is often the cheapest option long-term. You avoid any interest charges, and some suppliers offer discounts or extra perks for full payment.

Why choose this?

• No loan, no interest, no ongoing repayments

• You own the system outright from day one

• Maximise long-term savings

Look out for:

• Installer incentives or discounts for upfront payment

• A solid, trusted installer with guarantees and aftercare

Pay Monthly (Green Loans or Supplier Finance)

Many banks now offer green home improvement loans, and several major energy companies and solar installers offer their own payment plans. This lets you spread the cost over several years — often with 0% interest for a limited time.

Why choose this?

• Low or no upfront cost

• Makes solar affordable for most households

• Quick approval in many cases

Look out for:

• APR and total cost of borrowing

• Whether the installer adds a markup for financed deals

• Repayment terms and monthly affordability

Deferred Payments (Buy Now, Pay Later)

Some suppliers offer buy-now-pay-later schemes, where you can get your system installed now and start payments later — often after 6 or 12 months. This can be useful if you’re waiting for a bonus, inheritance, or savings to build up.

Why choose this?

• Get the benefits of solar right away

• Delay payments until your finances are ready

• Useful if you’re also applying for a grant or government support

Look out for:

• When interest kicks in — and how much

• Whether there are early repayment fees

• Any impact on your credit score

What’s Right for You?

Whichever option you choose, make sure you:

• Compare multiple quotes (Schemes like Solar Together can help)

• Check the installer is MCS-certified (required for SEG payments)

• Ask about warranties, maintenance, and post-installation support

Ready to explore your options? You don’t have to commit yet — but taking that first step could bring you closer to cleaner energy and lower bills.

Group-Buying Schemes: Why Switch Together Makes Sense

Switch Together helps homeowners join forces to secure better prices on solar panels and battery storage.

Why people choose Switch Together:

• Better prices: Installers compete, driving value

• Trusted installers: All installers are vetted

• Simple process: No need to shop around

For many households, group buying strikes the right balance between affordability, trust, and convenience.

So… Should You Get a Grant, Finance, or Pay Upfront?

The answer depends on your personal situation. Here’s a simple comparison:

When choosing, think about:

• Your household income

• Available savings

• Your eligibility for solar panel grants UK-wide

• Long-term savings from self-funding versus financing

Conclusion

There are more ways than ever to make installing solar panels affordable — whether through solar panel financing, or group-buying schemes like Solar Together.

Next Steps: Start Your Solar Journey

Ready to take the next step towards clean, affordable energy?

• Check your eligibility for grants through your local council or GOV.UK.

• Compare financing options from banks and energy suppliers to find the best fit for your budget.

• Join a group-buying scheme like Solar Together to access competitive prices for solar panels and battery storage.

• Learn more about costs and savings by visiting our Solar Panel Cost and ROI Guide and Battery Storage Costs and ROI Guide.

Every home and business is different — but with the right financial support, solar energy can be more accessible than you might think!