How To Offer Finance For Solar Panel Installations

Updated

May 7, 2026 12:03 PM

Written by Nathan Cafearo

Learn the main solar finance models, typical order values, FCA considerations, and how a broker-led approach can help UK businesses increase conversions and average order value.

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A modern UK home with solar panels on the roof, a family standing in the front garden looking at a tablet showing a simple finance plan, soft daylight, suburban street, clean and hopeful atmosphere.

Finance, explained in plain business terms

Customer finance means giving buyers a way to spread the cost of a solar installation into manageable monthly payments, rather than paying the full amount upfront. For your business, it is less about “discounting” and more about structuring affordability. You keep your headline price intact, protect margin, and widen the pool of customers who can say yes today. In a market where solar is increasingly tied to energy bills, resilience and net-zero targets, finance often becomes the bridge between interest and action.

Why buyers want finance for solar

Solar installations sit in an awkward middle ground: customers see the long-term savings, but the upfront cost can still feel like a hurdle. Many UK households fund solar by paying from savings, taking a loan or using installer-arranged finance, while some reduce the bill through group-buying schemes. The common thread is cashflow. Finance also helps customers align repayments with the period they expect to benefit, especially when products like solar loans can run from a few years up to 10 years, with some options extending longer.

How offering finance helps you sell more

Offering finance can lift conversion because it reframes the decision from total cost to monthly cost. That matters in solar, where customers compare you not only to other installers, but to doing nothing. When you can show a clear, compliant finance example, the conversation becomes more concrete: what the deposit is, what the monthly payment is, and what term options exist. Finance can also raise average order value by making batteries, optimisers, EV chargers or monitoring upgrades feel achievable within the same monthly budget, rather than a second purchase later.

Understanding APR is not just about percentages - it is about knowing what you will pay in real terms, and whether the term fits your household or business cashflow.

Standout line: If the customer can afford the monthly, the install becomes possible.

Typical transaction values (UK solar)

Commercial systems vary widely, but a useful benchmark for SMEs is that a 20-50 kW solar install is often in the £16,000-£60,000 range, which is exactly the sort of ticket size where structured payments can preserve working capital.

Segment	Typical system size	Typical transaction value	Common finance fit
Domestic solar PV	3-6 kWp	£6,000-£14,000	Fixed-term loan, interest-free promo (where available), installer finance
Domestic PV + battery	4-8 kWp + storage	£10,000-£20,000	Longer-term loan, tailored monthly payments
SME commercial solar	20-50 kW	£16,000-£60,000	Asset finance, hire purchase style structures, business loans
Larger commercial / multi-site	50 kW+	£60,000+	PPA style agreements, lease-to-own, blended funding

What you can put on finance

Solar panel supply and installation
Battery storage supply and installation
Inverter upgrades and replacements
EV charger supply and installation (bundled with solar)
Smart monitoring and energy management systems
Roof works that are integral to the install (where permitted by the lender)
Ongoing maintenance packages (if eligible within the finance product)

The finance models customers will ask about

Solar finance is not one-size-fits-all. In practice, customers tend to compare four structures:

Model	Who owns the system?	Upfront cost	How payments work	Best for
CAPEX (outright purchase)	Customer from day one	High	Paid upfront	Customers seeking maximum long-term savings and ROI
Green loan / home improvement loan	Customer from day one	Low to medium	Fixed repayments over an agreed term	Customers who want ownership with predictable monthly payments
Lease-to-own	Usually transfers over time	Often low	Regular payments, ownership at end of term	Customers who want a path to ownership without big upfront cost
PPA (Power Purchase Agreement)	Provider initially	Typically low	Customer pays for electricity generated over 15-25 years	Sites focused on cashflow and simplicity rather than ownership

Next-step suggestion: Keep your quoting tools ready for two parallel views: total installed price and an illustrative monthly payment based on term options.

FCA and compliance: the essentials

If you introduce customers to finance, the rules matter. You must avoid presenting credit as guaranteed, ensure promotions are clear and not misleading, and show representative examples where required. Make sure any finance messaging is approved for use, staff are trained on what they can and cannot say, and customers are signposted to key pre-contract information before they commit. Treat affordability and vulnerability considerations seriously, and keep a clean audit trail of the journey.

How broker-led and introducer models actually work

An introducer or broker model allows you to focus on selling and installing solar, while a regulated finance specialist handles the lending panel, application flow and lender relationships. In simple terms, you introduce the customer to finance at the right moment in the quote, the broker supports the application and lender selection, and the lender provides the credit agreement. This setup can suit businesses that want to offer choice without becoming a finance department, and it can reduce friction for customers by giving them a clear route from quote to decision, often with quick approvals depending on product and lender.

What the customer journey looks like (step-by-step)

Customer enquiry: the buyer requests a quote for solar, battery or a bundle.
Survey and proposal: you provide system design, expected performance assumptions and a fixed price.
Present payment options: offer pay-in-full and finance routes side by side, using compliant example figures.
Customer chooses a route: they confirm whether they want to apply for finance and the preferred term.
Application: the customer completes an application and supplies any required details.
Decision and agreement: lender decision is issued; the customer reviews and signs the credit agreement.
Installation booked: you confirm dates, access and any prerequisites.
Works completed: installation is delivered and signed off.
Funds and repayments: finance is activated according to the lender process; the customer begins repayments as agreed.
Aftercare: handover pack, monitoring setup, and support for any remedial works.

Getting started with Kandoo

Kandoo is a UK-based retail finance broker, set up to help businesses offer customer finance without losing sight of what they do best: selling and delivering great work. The starting point is understanding your typical basket value, your customer profile (prime, near-prime, mixed) and the products you want to finance. From there, we help shape a finance proposition that fits your sales process, aligns with how customers buy solar in the UK, and supports compliant marketing. The aim is simple: make monthly payments clear, approval journeys smooth, and conversion easier to measure and improve.

Next steps you can take this week:

Review your last 20 quotes and identify the most common price points.
Decide which add-ons you want to bundle into finance.
Prepare a short script that explains finance without pressure or assumptions.

FAQs

Can I offer 0% finance for solar installations?

Sometimes, depending on lender appetite, term length and commercial setup. Where 0% is not available, competitive APR options and clear monthly illustrations can still be highly effective.

Are PPAs only for large commercial sites?

PPAs are most common in commercial and multi-site settings because they suit long-term energy purchasing. For domestic customers, loans and installer finance are usually more familiar.

What terms do solar loans typically run for?

Many UK solar loans are structured over a few years up to around 10 years, with some options extending longer depending on the provider and product.

Do I need to be FCA authorised to introduce finance?

It depends on your exact activities and structure. Many businesses operate under an introducer model with the right permissions and controls in place, but you should always confirm the correct compliance route for your setup.

Will offering finance slow down my sales process?

Done well, it usually speeds decisions up because the customer can act on a monthly figure. The key is placing finance at the quoting stage and keeping the application journey simple.

Can finance cover batteries and EV chargers as well as panels?

Often yes, subject to lender criteria and how the invoice is structured. Bundling can increase order value and improve customer outcomes when designed sensibly.

What should I put on my website to stay compliant?

Use approved wording, avoid implying guaranteed acceptance, and ensure any representative examples are accurate and up to date. Keep it clear, balanced and easy to understand.

Is solar finance only for households?

No. Commercial solar is frequently funded through asset finance or business lending, particularly where businesses prefer to preserve working capital for trading needs.