Solar Finance: Which Saves Most?

What is the best way to finance solar panels?

Solar panel finance options compared (4kW system): OPTION A — CASH (£7,000): Total cost: £7,000. Total savings (25yr): £18,000. Net profit: £11,000. Best option if you have the capital. OPTION B — PERSONAL LOAN 7% APR, 5 years (£7,000): Monthly payment: £139. Total repaid: £8,340. Total savings: £18,000. Net profit: £9,660. £1,340 less than cash but still hugely profitable. OPTION C — INSTALLER 0% FINANCE, 5 years (£8,000*): *0% finance often means a higher system price (10-15% markup). Monthly payment: £133. Total repaid: £8,000. Total savings: £18,000. Net profit: £10,000. Compare the SYSTEM PRICE, not the interest rate. OPTION D — GREEN MORTGAGE ADD-ON (£7,000 at 3.5%): Added to mortgage over 25 years. Monthly: £35. Total repaid: £10,500. Total savings: £18,000. Net profit: £7,500. Lowest monthly cost but highest total interest. KEY FINDING: Cash is always cheapest. But ALL options generate positive returns. Even a 10% APR loan on solar panels earns more than it costs. Sources: Bank of England base rate (bankofengland.co.uk), comparison site loan rates, installer finance terms.