Can you finance a solar panel?

Yes, solar panels are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £10,000 to £500,000, and most deals are written over 12–84 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

Solar Panel Finance: Compare Rates from 200+ Lenders

Typical Cost

£10k – £500k

Approval Speed

24–48 hours

100% finance available

Rates From

4.2% APR

What would a solar panel cost per month?

Solar Panel price (ex VAT) £65,000

Deposit 10%

Agreement term 60 months

Annual interest rate 9%

Balloon payment £0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical solar panel price. Indicative only, not a quote.

Finance options

Hire Purchase (HP)

Rate: From 4.5% APR
Term: 12–84 months
Deposit: 10–20%
Ownership: Yours at the end
Best for: Businesses wanting to own the system and claim Feed-in Tariff

Finance Lease

Rate: From 4.2% APR
Term: 12–84 months
Deposit: None required
Ownership: Return or buy (balloon payment)
Best for: Tax-efficient, claim 100% of payments against profit

Operating Lease

Rate: From 4.9% APR
Term: 36–84 months
Deposit: None required
Ownership: Return at end
Best for: Zero upfront cost. Monthly savings often exceed payments.

Representative example

On a purchase price of £65,000: a 10% deposit of £6,500, then 48 monthly payments of £1,371 at 5.9% APR representative (fixed). Total amount payable £72,308, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification	Guide price	Type
JA Solar DeepBlue 3.0 Pro	£200 – £280 per panel	Mono PERC 550W
SolarEdge SE100K Inverter	£4,000 – £6,500	Three-Phase Inverter
50kWp Rooftop System	£40,000 – £65,000	Commercial Rooftop
100kWp Ground Mount System	£80,000 – £130,000	Ground Mount Array

Tax benefits

Commercial solar installations qualify for Annual Investment Allowance (AIA), letting you deduct the full cost from taxable profits in year one, up to £1,000,000. Panels fixed to a building may be treated as an integral feature rather than moveable plant, which changes both the allowance available and how readily an asset lender will lend against them, so ask your accountant to confirm the treatment before you claim.

Market context

Commercial solar installations are bought by businesses with suitable roof or land space wanting to reduce reliance on grid electricity, from a small retailer covering its own roof to a larger manufacturer or logistics site with a substantial installation. Finance is widely used because the panels, inverters and installation work are bundled into one project cost, avoiding a large capital outlay for a system that delivers its benefit gradually over its operating life rather than immediately. Replacement is generally driven by inverter life, which is shorter than the panels themselves, rather than sudden failure. The used market is limited, since systems are rarely removed while still functional.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

Frequently asked questions

Does commercial solar equipment qualify for the same finance as other business equipment?

Yes. Commercial solar installations are financed in the same way as most other business equipment, through hire purchase, a finance lease or an operating lease, rather than through a separate scheme with different rules. Because panels, inverters and installation work are usually bundled into one project cost, the finance is typically arranged as a single facility covering the whole installation rather than the panels alone. What we compare across our panel of lenders is the cost of borrowing, the rate, term and deposit on each structure, rather than any figure for what the system might save you, which depends on your usage and tariff and is best discussed with your installer.

What deposit do I need for commercial solar finance?

Hire purchase typically asks for a deposit of around 10 to 20% of the total project cost, covering panels, inverters and installation, with the balance spread over the agreed term. A finance lease or operating lease usually needs no deposit at all, since the lender's security sits in the equipment rather than an upfront payment, which is why many businesses use a lease structure to keep more cash free during the installation period. The deposit level also depends on the size of the system and your business's trading history, with larger installations sometimes needing a bigger deposit.

Are solar finance repayments fixed for the length of the agreement?

Yes, hire purchase and finance lease repayments on a commercial solar installation are fixed for the agreed term, so the amount you pay each month is known from the outset regardless of how electricity prices move. This makes budgeting straightforward, but the finance provider is not promising any particular reduction in your electricity bill, that depends on your own usage, tariff and how much of what the panels generate you use on site, which is a conversation to have with your installer or energy adviser rather than with a lender. An operating lease works slightly differently, with a rental cost rather than a repayment building toward ownership.

How quickly can commercial solar finance be approved?

A straightforward installation on an existing roof, quoted by an established installer, is commonly approved within a few working days once your application, the installer's quote and your recent accounts are with the lender. A larger or more complex project, a ground-mounted array, a new roof structure built to take the panels, or an installation bundled with battery storage, typically takes one to two weeks, because the lender is assessing a bigger facility and a more detailed specification. Getting the installer's full quote and survey report ready before you apply is the main thing that keeps the process quick.

Is solar equipment financed the same way as moveable plant and machinery?

Not entirely. Once panels are fixed to your roof or ground-mounted on your site, some lenders and accountants treat a solar installation more like a building improvement than freestanding moveable plant, which is the basis most equipment finance relies on for its security. In practice, solar is still financed through hire purchase, a finance lease or an operating lease as described here, but a lender will look closely at whether your business owns the building or holds a lease, and if you lease your premises, at how long is left on it, since most lenders won't want a finance term running past the end of a lease. If you're on a leased site, check your lease length against the finance term and flag it to your broker early.

Is VAT charged on commercial solar finance?

If your business is VAT registered, VAT is generally charged on a commercial solar installation in the same way as most other business equipment, though when it falls due depends on the finance structure. Hire purchase treats the installation as a purchase from the outset, so VAT is typically charged upfront on the full project cost, usually reclaimable on your next return. A finance lease or operating lease instead charges VAT on each rental payment as it falls due, spreading the liability across the term. Given the larger total cost of many solar projects, it's worth checking the exact treatment and reclaim timing with your accountant before choosing a structure.

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Solar Panel Finance