Solar finance spreads pain across years — but total cost often exceeds upfront cash if you do not read the contract.
Common finance structures
Unsecured personal loans, installer-backed finance, and green home loans each carry different APRs, early settlement rules, and ownership implications. Secured loans against property add conveyancing complexity on sale.
APR vs total payable
A £7,000 system at 9.9% APR over ten years may cost £10,500 total — compare against lost bill savings timing. Cash buyers start saving day one; financed buyers service debt first.
| Payment route | Watch for |
|---|---|
| Upfront cash | Opportunity cost of capital |
| Personal loan | APR, early repayment fees |
| Installer finance | Balloon payments, default repossession clauses |
| Remortgage top-up | Interest over mortgage term multiplies cost |
Who owns the system?
Most domestic deals transfer ownership at install — but lease-style products exist abroad and occasionally surface in UK marketing. Ensure MCS certificate names you as owner for SEG.
Cooling-off and deposits
Consumer credit agreements include cooling-off periods — know dates before work starts. RECC installers cap deposits — verify protection if firm insolvents mid-job.
Monthly payment comfort is real — but payback clocks start at total cost, not the deposit.
Fair comparison method
Model ten-year net position: cash install with bill savings vs financed install minus payments including interest. Include degradation and tariff change sensitivity.
Independent financial advice helps on large secured borrowing — this article is not that advice.
