The short answer: there is no single best way to finance solar panels or a home battery, because the right option depends on your credit record, how much you need to borrow and how long you plan to stay in the home. The main routes are a lender loan under the Warm Homes Loan Scheme, finance offered by an energy supplier, an unsecured personal loan, a loan secured on your home, a roof-rental or lease arrangement, or paying cash. Whichever you choose, compare the total amount repaid, not the monthly payment.
Not financial advice. This page is general information from an independent publisher. We are not a lender, broker or adviser and cannot say which option suits you. For a decision about your own finances, use a regulated adviser or free services such as MoneyHelper or Citizens Advice.
The main ways to pay for solar and a battery
Warm Homes Loan Scheme
This is a loan from a lender approved by the Department for Energy Security and Net Zero (DESNZ), not a grant. The scheme rules (September 2026) allow personal unsecured or secured loans from FCA-authorised lenders, with no income threshold, for any UK domestic property. The caps are £15,000 for a battery (alone or with solar) and £15,000 for solar panels. Government pays lenders up to 20% of the loan, which must be passed on by lowering the nominal interest rate. The rules do not promise a zero rate, and the first consumer launch phase began in September 2026, so availability varies by lender. Our Warm Homes Loan Scheme guide has the detail.
Supplier finance
Some energy suppliers sell batteries and offer finance alongside. As one published example, E.ON Next's battery purchase page (read 6 October 2026) showed a finance illustration of a 25% deposit of £998.75, 7.9% APR over 120 months and £5,291.15 in total. That is that supplier's own worked example for one product, not an offer to you. Octopus Energy's battery pages mention paying the balance after installation or through a fixed-term loan, with a £500 advance payment that it describes as non-refundable. Prices and terms change, so read the live page before relying on any figure.
Unsecured personal loan
A bank, building society or online lender pays you a fixed sum that you repay in instalments. Nothing is secured on your home. The rate you are offered depends on your credit record and the amount.
Secured loan or remortgage
These use your home as security, which can mean lower rates or longer terms, but the lender can seek to take the property if you fall behind. A long term lowers the monthly payment while raising total interest. If you are considering this, get independent advice first.
Rent-a-roof, lease and similar offers
Under these arrangements, as Money Saving Expert describes it, you give a company the right to use your roof in exchange for using the electricity. You may not own the system, so you may not receive the Smart Export Guarantee payments yourself. Money Saving Expert also notes that selling a property with a long-term subscription may not always be straightforward. Before signing, ask whether the agreement is registered against your property, what a buyer must take on, what happens if you want to leave early, and whether prices can rise. We have not reviewed any specific provider's terms.
Paying cash
Paying outright avoids interest altogether. Installing a battery in a home currently qualifies for 0% VAT until 31 March 2027, then 5% (see battery VAT relief). Use the savings calculator to test whether the numbers work, and our cost guide for the price context.
APR, rate and total cost of credit
Interest rate versus APR
The interest rate is the charge for borrowing the money. The APR (annual percentage rate) also includes mandatory fees, so it is the figure designed for comparing loans. A low headline rate with a large arrangement fee can have a higher APR than it first appears.
What "representative APR" means
An advertised representative APR does not mean you will get that rate. Money Saving Expert explains that only 51% of successful applicants need to be offered the advertised rate, so many people are offered more. Ask for a personalised quote, and use an eligibility checker that does not leave a hard search on your credit file where one is available.
Worked example (assumptions only)
This is arithmetic, not an offer or a quote. We assume a loan of £8,000 at a fixed 7.9% APR, with monthly repayments, no fees and no early repayment. The monthly rate is derived from the APR and payments follow the standard amortisation formula. Figures are rounded to the penny.
| Term | Monthly payment | Total repaid | Total interest |
|---|---|---|---|
| 5 years (60 months) | £160.79 | £9,647.35 | £1,647.35 |
| 10 years (120 months) | £95.50 | £11,459.41 | £3,459.41 |
Doubling the term cut the monthly payment by about £65 but more than doubled the interest. Money Saving Expert makes the same point: look at total cost rather than low monthly payments, which often reflect a longer term. Also compare this against the saving you expect: if interest costs more than the bill reduction, the loan works against you. The savings calculator can help you test that.
Protections and checks before you sign
FCA authorisation
Most consumer lending and credit broking in the UK needs authorisation from the Financial Conduct Authority (FCA). The FCA's Financial Services Register is a public record of firms that are, or have been, authorised, and it also flags unauthorised firms and clone firms. Search the register yourself at register.fca.org.uk, using contact details you found independently rather than ones given in an advert. Under the Warm Homes Loan Scheme, lenders must be FCA-authorised.
Consumer Credit Act protections
For a regulated credit agreement, the Consumer Credit Act 1974 gives you rights that are worth knowing. Citizens Advice covers them in its borrowing guidance, including cancelling a loan or paying it off early. In summary:
- Withdrawal: you can generally withdraw from a regulated agreement without giving a reason by notifying the lender within 14 days beginning the day after the relevant day (Consumer Credit Act 1974, section 66A). Check how this interacts with any installation work already started.
- Section 75: where credit is used to buy goods or services and the agreement qualifies (for example a regulated credit card or point-of-sale loan), the lender can be jointly liable with the supplier for misrepresentation or breach of contract, for a single item with a cash price above £100 and up to £30,000. A plain personal loan paid into your own account may not give this protection.
Not every agreement is regulated, and rent-a-roof or lease arrangements may sit outside these rules. Ask the provider directly which protections apply, and check with Citizens Advice if unsure.
Checklist of questions to ask
- Is the lender or broker on the FCA register, and is it authorised for this activity?
- What is the APR I will actually pay, not the representative APR?
- Is the rate fixed? Are there arrangement or other fees?
- What is the total amount repayable over the full term?
- Is the loan secured against my home, and what happens if I miss payments?
- Can I repay early, and is there a charge?
- Is this a Warm Homes Loan Scheme loan, and how much of the government contribution has been passed on in the rate?
- Is any deposit refundable if the installation does not go ahead?
- If I sell the house, what happens to the loan or agreement?
- Is the installer certified under MCS? Check the MCS directory yourself.
Once you have a figure in mind, our eligibility check shows which grants and schemes may apply before you borrow.
Frequently asked questions
Can I get a loan for solar panels and a battery together?
Yes, lenders offer loans for solar, for batteries or for both. Under the Warm Homes Loan Scheme rules the caps are £15,000 for solar and £15,000 for a battery, but individual lenders set their own terms and eligibility, so ask each one.
Is the Warm Homes Loan Scheme interest-free?
Not according to the scheme rules. Government pays lenders up to 20% of the loan and the lender must use that to lower the nominal interest rate. The rules do not promise a zero rate, so check the APR you are offered.
What is the difference between APR and representative APR?
APR combines the interest rate with mandatory fees into one comparable yearly figure. A representative APR is the rate that only 51% of successful applicants need to be offered, according to Money Saving Expert, so your own rate may be higher.
How do I check a lender is FCA-authorised?
Search the Financial Services Register at register.fca.org.uk. It is the FCA's public record of authorised firms and also lists warnings about unauthorised and clone firms. Use contact details from the register, not from an advert.
Is rent-a-roof a good alternative to a loan?
It avoids a loan, but you may not own the system or receive export payments, and Money Saving Expert notes that selling a home with a long-term subscription may not always be straightforward. Read the full agreement and ask what a buyer would have to accept.
- DESNZ: Warm Homes Loan Scheme, scheme rules (September 2026): loan caps, FCA-authorised lenders, 20% government contribution
- FCA Financial Services Register: checking a firm is authorised
- FCA: about the Financial Services Register: what the register records and clone-firm warnings
- Citizens Advice: borrowing money: APR, cancelling a loan, paying early, Consumer Credit Act rights
- Consumer Credit Act 1974, section 75: lender liability for supplier breaches
- Consumer Credit Act 1974, section 66A: 14-day withdrawal
- Money Saving Expert: personal loans: representative APR 51% rule, total cost versus term
- Money Saving Expert: solar panels: rent-a-roof description and resale caution
- E.ON Next: battery purchase page: published finance example (read 6 October 2026)
- Octopus Energy: battery-only installation: fixed-term loan option and advance payment (read 6 October 2026)
- HMRC VAT Notice 708/6: 0% VAT on home batteries to 31 March 2027, then 5%