Financing solar in Perth: green loans, personal loans, and other options

The majority of Perth households who install solar don't pay the full system cost upfront. They finance it — either through a dedicated solar/green loan, a personal loan, or occasionally via the installer's own payment plan. The right choice depends on your credit profile, the loan term you want, and how much you want to prioritise cash flow.

The basic economics of solar financing

A 6.6kW Perth solar system costs approximately $7,000–$8,500 installed. If the system saves $1,800–$2,200/year in electricity costs (which is typical for a Perth household on Midday Saver), the payback without financing is approximately 3.5–4.5 years.

With financing, you pay interest — which extends the effective payback period. The question is whether the annual electricity saving exceeds the annual loan repayment.

Simple test:

• Annual electricity saving: ~$2,000
• Annual loan repayment (at 5% over 5yr on $8,000): ~$1,814/year
• Surplus over loan repayment: ~$186/year

In this case, the solar system cash-flow-positive from day one, even with financing.

Green loans (dedicated solar finance)

Several Australian financial institutions offer dedicated green loans or solar loans:

Clean Energy Finance Corporation (CEFC) supported products: The CEFC (federal government clean energy lender) provides concessional wholesale funding to participating institutions that offer retail green loans. This passes through as lower interest rates to consumers.

Look for green loans from participating lenders including:

• Community banks and credit unions (People's Choice, Beyond Bank, IMB)
• Some regional banks and some of the major banks' green divisions

Rates range from approximately 5–7% p.a. (lower than typical personal loan rates of 8–14%) for secured or property-linked green loans.

NILS (No Interest Loans Scheme): NILS provides zero-interest loans of up to $2,000 (sometimes $3,000 in some states) for essential household items for eligible low-income households. Solar hot water systems are listed as eligible items; rooftop solar PV may also qualify depending on the state's current NILS criteria.

In WA, NILS is administered through financial counselling services. If you hold a Healthcare Card or Pensioner Concession Card and meet the income and capacity-to-repay criteria, NILS can cover a solar hot water component.

Contact Good Shepherd Australia or a local financial counsellor in Perth to check eligibility.

Personal loans

Standard personal loans from banks or online lenders can finance solar installation. Rates in 2026 range from approximately 6–16% p.a. depending on creditworthiness and whether the loan is secured.

Advantages:

• Simple: no dedicated "solar loan" process
• Fast approval with some online lenders (same day)
• Not tied to a specific installer or system

Disadvantages:

• Higher rates than dedicated green loan products
• No government-backed concessions

For a $8,000 loan at 8% over 5 years:

• Monthly repayment: approximately $162
• Total interest: approximately $1,736
• Total paid: approximately $9,736 vs $8,000 cash purchase

Redraw from mortgage (if equity available)

Perth homeowners with equity in their mortgage can redraw from their offset or redraw facility to fund solar. At current WA home loan rates (approximately 5.5–6.5% variable, 2026), this is typically the lowest-cost financing option.

The trade-off: using equity extends your mortgage. But the interest saving vs a personal loan is significant:

$8,000 at 6% (mortgage redraw) vs 9% (personal loan) over 5 years:

• Mortgage interest: approximately $1,278
• Personal loan interest: approximately $1,943
• Difference: approximately $665

The mortgage path saves ~$665 in interest but extends your total mortgage balance — worth it mathematically for most owner-occupiers with accessible equity.

Installer payment plans

Some Perth solar installers offer their own payment plans (deferred payment or low-rate plans). These vary widely:

• Some are genuinely interest-free (the retailer absorbs the cost, or it's priced into the system)
• Others are finance products from a third-party financier at market rates

Check: any installer payment plan should disclose the total repayable amount, interest rate, and any fees. Compare the total cost against equivalent bank financing.

Fringe benefit comparison (for business owners)

Solar on a commercial property can be financed via chattel mortgage or equipment finance under Australian tax rules, with interest and depreciation potentially deductible. Business solar financing is separate from residential green loans — speak with a business accountant.

The cash-flow-positive test

Before committing to financing, calculate whether the solar saving exceeds the repayment:

1. Get your annual electricity cost from recent Synergy bills
2. Estimate annual solar saving (BillWise calculator: approximately 50–70% of your electricity cost for a well-sized Perth system)
3. Calculate annual repayment on your loan amount and rate
4. If saving > repayment: cash flow positive from day one

If the loan payments exceed your first-year saving (possible if you take a very short term or high rate), you're temporarily cash-flow-negative — still likely worth doing long-term, but understand the first-year position.

Loan rates and products change frequently. Verify current rates with individual lenders. This is general information, not financial advice.