Solar panel finance: a checklist before you sign

Why a finance check matters

Solar panels cost thousands of pounds, so many people pay over time. However, the finance deal can add a lot to the price. This checklist helps you spot a poor deal before you sign.

We are an independent information site, not a lender or broker. Nothing here counts as financial advice, and we cannot promise any deal or saving. For a wider view of your options, read our guide to solar loans and finance.

Know the main ways to pay

Most people use one of four routes. Each has different costs, and each gives you different protections.

• Cash or savings, which avoids interest but ties up your money.
• A personal loan from a bank or building society, with a fixed monthly payment.
• Credit offered through the installer, often arranged at the point of sale.
• A green mortgage or a larger mortgage, which spreads the cost over many years.

The Warm Homes Plan mentions green mortgages that offer cashback for home improvements. It also says some people may add to their mortgage, while others may take a separate loan. A longer term lowers the monthly bill, but you usually pay more interest in total.

Check the cost, not just the monthly payment

A low monthly figure can hide a high price, so ask for the APR, the term, and the total you will repay. Then compare that total with the cash price of the same system.

For example, a deal sold as “0% interest” may raise the cash price to cover the cost of the credit. Therefore, ask for the cash price and the finance price in writing. If the two differ by a lot, you pay for the credit one way or another.

Also ask about fees for paying early. Some loans charge you if you settle ahead of time, so you cannot always clear the debt when your money improves.

Check who is lending the money

Almost all firms that provide financial services in the UK need authorisation from the Financial Conduct Authority. The FCA says its Firm Checker will tell you whether a firm has permission to sell the product. If a firm lacks that permission, the FCA says you should avoid dealing with it.

Use the FCA Financial Services Register and type in the lender’s name. Do not rely on a logo or a leaflet, because anyone can print those. A firm that is only registered, not authorised, may leave you without the Financial Ombudsman Service or the compensation scheme.

Know your cancellation rights

You may have time to change your mind. Citizens Advice says you can cancel a credit agreement under the Consumer Credit Act 1974 within 14 days of signing. If you already have the money, you must pay it back, although the lender must give you 30 days to do so.

Separately, a contract you sign at home usually has a 14-day cooling-off period. This right covers sales made away from the trader’s premises, and it starts the day after you enter the contract. Keep a copy of every document, because you will need the dates if you cancel.

Think about how you pay

How you pay can protect you if things go wrong. Citizens Advice says credit cards offer the most protection, followed by PayPal or a debit card. Under Section 75 of the Consumer Credit Act, you can claim from your card provider for items costing over £100 and up to £30,000.

However, Section 75 does not usually apply if you did not buy directly from the trader. A loan from a separate lender may therefore not give you the same cover. Ask your card provider or Citizens Advice before you rely on it.

Watch out for big deposits and pressure

A large upfront payment is a warning sign. The Renewable Energy Consumer Code says you should not need to pay more than 25% of the final price as a deposit. It also recommends getting at least three quotes, since that shows you what a fair price looks like.

Never feel rushed. A firm that says a price is “only valid today” is using pressure, not giving you a deal. Our guide to solar doorstep and cold-call scams explains the tactics to watch for.

Check the installer and the system

Finance does not fix a poor installation, so check your installer before you borrow anything. Our guide on how to check an MCS certified installer shows you how.

Then look at what the quote includes. Ask whether it covers scaffolding and the paperwork for export payments. If you want a battery, read our explainer on funding for solar batteries first, because it changes the price.

Check the tax and the grants

Your quote should reflect the VAT position. As of October 2026, HMRC guidance sets a zero rate of VAT on installing solar panels at home until 31 March 2027, then 5% from 1 April 2027. Read more on zero VAT on solar, and check GOV.UK before you rely on that date.

Grants work differently from loans. The Warm Homes Plan says low-income households could get help with solar panels, and it also announced planned loans. However, we found no launch date for those loans as of 10 October 2026, so read about the Warm Homes Plan for the latest.

Funding rules differ by nation, because each one runs its own schemes. See solar funding routes in England and solar funding routes in Scotland. Readers in Northern Ireland can start with solar support in Northern Ireland.

If you rent, your options differ again. Our guide to solar panels for renters and landlords covers that.

A short checklist to take with you

Print or copy these points before you meet an installer or lender. They take a few minutes to check, yet they can save you a lot of money. If an answer is vague, ask again or walk away.

• Does the FCA register show the lender as authorised?
• What are the APR, the term and the total you repay?
• What is the cash price compared with the finance price?
• Can you cancel, and by when?
• Is the deposit 25% or less of the final price?
• Does the installer hold certification, and do you have a written contract?