Paying for business solar: cash, loans, leases and solar PPAs

The up-front cost is the biggest barrier to commercial solar, but it isn’t the only option. This guide explains the common ways to pay, with a comparison table and the questions to put to any lender or PPA provider. To see whether the system itself pays off first, read is commercial solar worth it. This guide is general information and not financial advice.

What are the ways to pay for business solar?

Cash

You pay for the system yourself. It is the simplest arrangement and usually the cheapest over the long run because there is no interest, but it ties up capital that you might use elsewhere in the business. You own the system, you keep the savings, and you (or your installer, if you assign them) claim the certificates.

Loans: hire purchase and chattel mortgage

business.gov.au’s guide to choosing your funding describes two secured options that are common for equipment. With hire purchase, you rent an item with the option of owning it once you have paid off the debt. With a chattel mortgage, you borrow money from a lender to own an item. The same page notes that debt finance repayments come with interest, often need collateral, and that interest is tax deductible. How these two differ in tax and ownership, especially in the early years, is a question for your accountant.

Leasing

In a lease, a finance company buys the system and you pay to use it over an agreed term. At the end you may be able to buy it, extend, or hand it back, depending on the contract. business.gov.au lists leasing among the options and suggests you consider whether buying or leasing is better for you, but doesn’t compare the cost. Read the end-of-term terms closely.

Solar power purchase agreements (PPAs) and subscriptions

In a solar PPA, a provider designs, installs, owns and maintains the system on your roof, and you buy the power it produces at an agreed price per kWh, usually for a fixed term. You pay little or nothing up front. The trade-offs are that the provider generally keeps the ownership (and often the certificates and any tax benefits), the price per kWh is set by contract, and you commit to the term. Some providers offer similar “subscriptions” that bundle solar and batteries for a regular fee. We haven’t verified any provider’s rates, so we don’t quote any here: ask for the price per kWh, how it changes each year, and what the contract says when you leave.

How do the options compare?

The certificate column deserves attention. Whoever owns the system usually creates the certificates, and the Clean Energy Regulator’s guide to creating STCs explains how that works for small-scale systems. Mid-scale systems of 100 kW to 1 MW use a fixed five-year deeming period, set out on the Regulator’s mid-scale solar page. If a provider owns the system and keeps the certificates, check that their value is reflected in your price.

Is there cheaper finance for energy upgrades?

Sometimes. The Clean Energy Finance Corporation (CEFC) is government-owned but does not lend directly to businesses. Instead it backs banks and other financiers, who pass on the benefit of lower-cost finance. Its page says this finance can cover up to 100 per cent of the cost of eligible equipment and lists the financiers taking part. The list changes, so check which of them offers a product that covers solar and batteries.

One example, as of the CEFC’s 31 July 2026 media release on its ANZ program: the CEFC and ANZ each contribute 0.4 per cent a year towards a total discount of 0.8 per cent. It is for small and medium business customers of ANZ, and eligible assets include rooftop solar and batteries. The release doesn’t state start or end dates, and the CEFC doesn’t provide finance to individual borrowers, so you apply through ANZ and ask about current terms.

What should I ask a finance or PPA provider?

• What is the total I will pay over the whole term, including fees, and what is the effective annual rate?
• Who owns the system during and after the term, and who owns the certificates?
• What security do you need (a general security agreement, a charge over the equipment, a personal guarantee)?
• Who is responsible for maintenance, insurance and inverter replacement, and what happens if the system stops working?
• For a PPA: what is the price per kWh, how does it change each year, and is there a minimum purchase or a fee if my use drops?
• What happens if I sell the business, move, or the landlord sells the building? Can the agreement be transferred, and at what cost?
• What are the exit and early-termination terms?
• How does the system get removed at the end, and who pays?
• Does the financing depend on a landlord’s consent, and have you seen it?

What about tax?

How a purchase, loan, lease or PPA is treated for tax, including depreciation, GST and the treatment of certificates, depends on your business structure and the contract. Our guide to business solar tax and depreciation sets out the general rules. Take the contract to your accountant before you sign.

This guide is general information, not financial or legal advice. Rules, rebates and prices change, so check the linked sources before you decide. Facts checked 31 October 2026.