What is No Upfront Cost Solar?

Simply put, no upfront cost solar means you don't pay anything upfront to get solar installed. There are many ways to do this with the two most common ways being a '0% interest loan' and a green loan.

Whats the difference?

0% Interest Loan

Take out a loan that is 0% interest usually over a 5 year term with a finance provider (most common ones are Humm, Brighte and Plenti). This means you can install solar, save money on your energy bill and use it to pay off your solar system over 5 years.

Pros:

• No interest charged

• No upfront cost — install solar now, pay it off over time

• Fast and simple approval (done via your installer)

• Predictable repayments

Cons:

• Hidden costs: The installer usually pays a merchant fee (15–25%), which they often bake into the price of your system. So while the loan is “interest-free,” the total system cost may be higher than market rate.

• Shorter loan terms = higher repayments per month

Green Loan

Depending on your finance provider, you can take out a loan specific for solar at a fixed interest rate. Current market rate is about 5.99%. The loan you take out will be at lower principle but you end up paying interest over the life of the loan. You can however extend this loan out up to 10 years to minimise repayments putting you ahead with your solar savings.

Pros:

• Lower system price upfront (no embedded dealer fees)

• Longer loan terms = lower monthly repayments

• Transparent cost structure — no markup from installers

• Pay off early and save on interest

Cons:

• You’ll pay interest — the longer the loan, the more interest overall

• Approval can be slightly stricter (credit checks, income verification, etc