Understanding Interest-Free Solar Deals

It is important to know how interest-free solar finance really works, what to look out for and how to choose a system that offers genuine value for your home or business. 

Is $0 Upfront Solar Too Good to Be True? Here’s What to Know First 

If you’ve been thinking about getting solar, chances are you’ve seen a few offers that sound almost too good to be true. Doorknockers and online ads promising $0 upfront, 0% interest or even solar that pays for itself. For most people, it sounds like the perfect way to make the switch without breaking the bank. 

The truth is, these deals can make solar more affordable, but they’re not always what they seem. The fine print matters and understanding how these finance plans work can save you a lot of stress (and money) down the track. 

At STE Solar, we know how tempting these offers can be, especially when energy bills are climbing and everyone’s looking for relief. So let’s look at what’s really behind these “interest-free” and “no upfront cost” plans and how to make sure you’re getting genuine value for your home or business. 

The main finance models you’ll see 

1. “0% interest” or “no interest ever” payment plans 

Some solar companies promote interest-free finance with $0 deposit. For example, a 6.6 kW system might be advertised as “no upfront, $95 per fortnight over 21 months.” On paper, that sounds like you’re simply spreading the cost. 

In reality, these plans often include: 

• Account fees (for example $9–$10 a month to keep the finance account open) 

• Establishment fees (for example a $90 sign-up fee) 

• Admin or “service” fees on each repayment 

  
  

Those fees are how the finance provider gets paid instead of charging a headline interest rate. So yes, the ad can legally say “0% interest” even though you’re still paying extra money on top of the system price. 

Sometimes the “ticket price” of the system in these plans is already marked up compared to what you’d pay in cash. Installers and finance partners add a margin to cover that “interest free” deal. This can add thousands over the life of the agreement. 

So the question is not “is it 0% interest.” The question is “what is the total amount I’ll pay, all in.” 

2. Buy Now Pay Later for solar 

Some energy companies and solar retailers sell systems like you’d buy a TV or fridge. They call it “no money down” or “install now, pay later.” The idea is that your repayments are covered by your bill savings from using solar instead of grid power. 

Here’s what to watch: 

• Many of these plans run for 2 to 5 years. Miss a payment and late fees can hit fast. 

• If you haven’t cleared the balance by the end of the “interest free” period, a high interest rate can apply to what’s left. Rates above 20% per year are not uncommon. 

• Some plans are “0% interest for X months,” but once that time ends, any remaining balance can attract standard credit card-style interest. 

This is how people end up thinking “I’m paying off solar with no interest,” then three years later they’re paying high rates on the leftover balance. 

3. Green loans or low-rate energy upgrade loans 

These are like normal personal loans but with a lower rate because you’re buying something energy efficient. They cover things like solar panels, batteries or heat pumps. 

What’s good: 

• The interest rate is usually lower than a standard personal loan. 

• Terms can be up to 10 years so repayments stay manageable. 

What to check: 

• Are there application fees, monthly account fees or penalties for early payout? 

• Do you need to already bank with them to access the special rate? 

• Is the loan secured against your home or unsecured? 

These can be fair options as long as the rate and fees make sense. But they’re still debt so make sure you can manage the repayments long term. 

4. PPA or “pay for the power, not the system” (mainly for businesses) 

For commercial installs, you’ll sometimes see a Power Purchase Agreement (PPA). The installer funds, owns and maintains the solar system, and your business pays for the energy it produces at an agreed rate instead of paying the retailer’s grid rate. 

That can work for businesses that don’t want a capital spend but you don’t own the system during the contract. You’re basically locking in a long-term deal to buy electricity from whoever installed the panels. For homeowners, what’s offered is rarely a true PPA. It’s usually just a finance plan that looks like one. 

Why “no upfront cost” can still cost more overall 

Let’s say a normal 6.6 kW system is quoted at $3,970 if you pay outright. 

Now look at the finance version: 

• $0 deposit 

• $95.34 per fortnight for 21 months 

• $9.95 account fee per month 

• $90 establishment fee 

• Extra charges if you miss a repayment 

  
  

If you total that over the full term including fees, you’ll often find you paid more than $3,970 in the end.

So yes, you avoided the upfront hit but you paid a finance premium to do it. 

That might still be worth it if cash is tight and you need to cut power bills now. There’s nothing wrong with choosing that path. The problem is when people are told it’s “free solar” or “zero cost solar.” It’s not free. You’re just paying in a different way. 

Red flags to look for before you sign 

Ask these questions and get the answers in writing: 

1. Who actually owns the system on day one? You or the finance company? 

2. What is the total amount I’ll have paid by the end of the agreement? 

3. Are there account keeping fees, late fees, early payout fees or admin fees? 

4. What happens if I sell the house? Can I pay it out without penalty or does it have to move with the property? 

5. What happens if I miss one payment? Does it switch to a high interest rate? 

6. What warranty do I get and who is responsible for fixing faults? 

7. Is the system quality good or just the cheapest gear bundled to make the numbers work? 

Should you use one of these deals? 

Here’s the honest view. These payment plans can help the right person. If you’re in a high-bill situation and need relief fast, spreading the cost might genuinely help. 

But these plans can also hurt if: 

• The system price is inflated just so it can be called “interest free.” 

• You’re locked in with a finance company that charges heavy fees later. 

• You were pushed to sign on the day with no proper site check or design review. 

Solar isn’t something you replace every few years. It’s a long-term investment in your home. The finance is only one part of that decision. 

Our thoughts and advice 

1. Always compare the finance deal price with a standard cash quote for the same gear. If the finance version is thousands more, you’re paying for the marketing headline. 

2. Ask to see the repayment schedule in full. If they can’t show it, walk. 

3. Be cautious with plans that flip to high interest after the promo period. 

4. Check panel, inverter and install quality, not just the repayment number. 

5. Don’t sign finance on the spot. Sleep on it. 

Final word 

“0% interest.”  “$0 upfront.”  “Solar that pays for itself.” 

These offers are real and they can make solar more accessible for some households and small businesses. But they’re not magic. You’re still paying for the system and in many cases you’ll pay more overall once the fees are added. 

Before you sign, get a proper quote for the system itself. Make sure the design suits your home and usage and get a clear breakdown of the total cost from start to finish. Then you can decide if the finance option actually helps you. If you’d like to talk it through, get in touch with our team. We’ll explain your options in plain English and show you the true comparison so you can make the choice that’s right for you.