Rising energy costs are a concern for many households and more people are exploring renewable energy options like solar panels.
Installing solar panels may help reduce your reliance on grid electricity and could lower your energy bills over time, depending on your property, energy usage and system performance. Our blog: How Many Solar Panels Does a UK Home Need? breaks this down further.
However, solar panels can be a significant upfront investment.
This guide explains how solar panels work, what potential savings could look like, and how finance options may support your plans.
What Does “No Upfront Cost” Mean?
Some finance options allow you to install solar panels without paying a deposit upfront.
Instead, you borrow the cost and repay it in monthly instalments over an agreed period.
This means you won’t need savings to get started, but you will repay the full loan amount, plus any interest, over time.
Why Consider Solar Panels For Your Home?
Solar panels are a smart way to reduce reliance on grid electricity. By capturing the sun’s energy and converting it into electricity, you’re harnessing a renewable energy source to power your home.
If you generate more energy than you use, you may be able to export surplus energy to the grid.
Example savings: According to the Energy Savings Trust, a household in Manchester, where someone is home all day, could save up to £610 a year with solar panels. In London, savings rise to £690 a year.
That means you may be able to reduce your energy bills over time, depending on your system and usage. Costs and savings will vary depending on your circumstances.
How Can I Finance Solar Panels For My Home?
There are different ways to finance solar panels, depending on what’s available in your area.
One option is a renewable energy loan, which allows you to borrow the cost of installation and repay it over time.
At Lendology, we work with local council partners across England and Wales to offer renewable energy loans designed to support home improvements.
Depending on your location and eligibility, features may include:
- Borrowing from £500
- Fixed interest rates
- Representative 4.2% APR
- No early repayment charges
- Repayment periods of up to 15 years
Availability and terms will depend on your local council scheme and your individual circumstances.
How do Renewable Energy Loans Work?
With our Renewable Energy Loan, you could fund:
- Solar PV systems (electricity-generating)
- Solar thermal systems (hot water)
- Air source heat pumps
- Biomass heating systems
- Other renewable energy measures for your home
Am I Eligible?
Eligibility depends on your circumstances and where you live.
You may be able to apply if:
- You own your home
- You live within a participating council area
All applications are assessed individually, and approval is subject to status.
Things to consider before applying
Before taking out a loan, it’s important to think about:
- Whether repayments are affordable over the full term
- Whether solar panels are suitable for your property
- How this fits into your wider home energy plans
We recommend that you carry out an independent retrofit assessment to find out which works are suitable for your home and budget
Representative Example (4% fixed interest rate, Representative 4.2% APR).
Borrow £5,000 over 60 months, £92.08 monthly repayments. Total amount repayable = £5,544.96, including £20 fee for registering the Title Restriction against your property at the Land Registry. The £20.00 fee is only payable if a loan is agreed by Lendology and you decide to proceed with a loan. We do not charge interest on the fee. A Title Restriction means that you may not be able to sell your home without our permission unless the loan is fully repaid. This is a financial promotion approved by Lendology CIC. Missing payments could affect your credit rating and ability to obtain credit in the future.
Loans are subject to status and are typically protected by a Title Restriction.
