How to Finance Solar in South Africa (2025) | Loans & Options

By Princella Esther Agyei Certified Credit Counselor & HR Manager, HR People Associates
Another Stage 4 notification flashes on your phone. The lights go out, the Wi-Fi dies, and the familiar hum of the neighbourhood generators begins. As we navigate another year of persistent load shedding in August 2025, the dream of an uninterrupted power supply feels less like a luxury and more like a necessity.

The good news is that achieving energy independence with a solar power system is more accessible than ever. The biggest hurdle for most South African households remains the significant upfront cost. That’s where financing comes in.

This guide is your complete roadmap to understanding the different ways you can finance a solar and inverter system for your home, empowering you to finally beat load shedding for good.

First, Understand the Costs

Before you can finance a system, you need a realistic idea of the price. Costs vary based on your needs, but a typical residential system includes three core components:

• Solar Panels: To capture energy from the sun.
• Inverter: To convert the sun’s DC power into AC power your home can use.
• Batteries: To store excess energy for use at night or during a power outage.

As of 2025, here are some ballpark figures for a fully installed, quality system in South Africa:

• Small System (Apartment/Townhouse, 3-5kW): R90,000 – R150,000. Can power essentials like lights, Wi-Fi, TV, and a few plugs.
• Medium System (Average Family Home, 5-8kW): R150,000 – R250,000. Can handle most household needs, including larger appliances, but may require management of heavy-draw items like the geyser.
• Large System (Larger Home/High Usage, 10kW+): R250,000+. Aims for near-total grid independence.

Your Financing Options: A Head-to-Head Comparison

With a budget in mind, you can explore the four main paths to financing your system.

Option A: Dedicated Asset Finance

Think of this like vehicle finance, but for a solar system. Several major South African banks now offer specific “Green” or “Alternative Energy” loan products.

• How it Works: The bank provides a loan specifically for the purchase and installation of the solar hardware. The system itself often serves as security for the loan.
• Key Players: Nedbank (through MFC), FNB (Eco-Energy Solutions), Standard Bank, and Absa all have dedicated products.
• Pros: It’s a separate loan, so it doesn’t affect your home loan. The application process is relatively quick and purpose-built for solar.
• Cons: Interest rates are typically higher than a home loan. Loan terms are shorter (usually 5-7 years), leading to higher monthly payments.

Option B: Extending Your Home Loan (Bond)

If you have a mortgage and have paid a portion of it off, you have built up equity. Your bank may allow you to access this equity to pay for your solar system.

• How it Works: You apply to your bank to increase your existing home loan amount. If approved, the bank releases the cash to you.
• Pros: This is almost always the cheapest form of financing, offering the lowest possible interest rate over a long term (up to 20 years).
• Cons: It increases your overall home loan debt and the total interest you’ll pay over the life of the bond. The application process can be slower, and you must have sufficient equity in your property.

Option C: A Personal Loan

A standard personal loan is another route, especially for smaller systems or if other options aren’t available.

• How it Works: You apply for a standard, unsecured personal loan from a bank or registered credit provider.
• Pros: The application is usually very fast, and the funds can be available within a day or two. It is not tied to any asset.
• Cons: This is typically the most expensive option, with the highest interest rates. Loan amounts may be limited, and shorter repayment terms mean high monthly instalments.

Option D: Rent-to-Own / Subscription Models

A newer model in the market, this involves paying a monthly fee for a solar system without owning it initially.

• How it Works: A solar company installs a system on your roof. You pay them a fixed monthly fee for a set contract period (e.g., 7-10 years). At the end of the term, ownership may transfer to you.
• Key Players: Companies like GoSolr and Wetility have popularised this model.
• Pros: Requires little to no upfront capital investment, making it very accessible. Maintenance is often included in the monthly fee.
• Cons: You do not own the asset for a long time. Over the full contract term, it can end up being more expensive than financing a system you own from day one.

Side-by-Side Comparison Table

 

The Smart Buyer’s Checklist

Before you sign any documents, ask these questions:

For your Installer:

• Are you an accredited and reputable installer? (Ask for references).
• What are the specific warranties on the panels, inverter, and batteries?
• Is a Certificate of Compliance (CoC) included in the quote?
• What is the estimated annual energy production of this system?

For your Financier:

• What is the interest rate, and is it fixed or variable?
• What is the Total Cost of Credit over the full loan term?
• Are there any monthly admin fees?
• Is there any penalty for settling the loan early?

Conclusion

The hum of an inverter and the peace of mind during load shedding is no longer a dream reserved for the wealthy. By understanding the different financing avenues available, you can make a strategic financial decision that works for your budget.

Whether it’s the low interest rate of a bond extension, the convenience of asset finance, or the accessibility of a subscription model, there is a path for you. Do your research, compare your options, and take the first step toward creating your own power and securing your family’s comfort.