Solar Panels
Buy solar outright, finance it, or rent your roof?
The panels are much the same whichever route you take. How you pay for them changes the lifetime return more than any hardware decision will.
Most solar comparisons focus on panels, inverters and batteries. In practice the biggest single determinant of what you end up with is the payment structure — and it is the part installers explain last.
There are three routes: pay cash, borrow, or let someone else own the system on your roof.
Side by side
| Cash | Finance | Rent-a-roof | |
|---|---|---|---|
| Up front | £5,000 – £14,500 | Little or nothing | Nothing |
| You own the system | Yes, immediately | Yes, subject to the loan | No |
| Who gets the export payments | You | You | Usually the operator |
| Who benefits from the generation | You | You | You, on the electricity used |
| Total lifetime cost | Lowest | Higher — interest | No cost, but no ownership |
| Effect on selling the house | Usually positive | Loan settled on sale | Can complicate a sale |
| Who maintains it | You | You | The operator |
Cash
The cheapest way to own solar, and the simplest. You take the whole benefit: the electricity you use, the export payments, and any value the system adds to the property.
The obvious constraint is having several thousand pounds available. Worth comparing against what that money would otherwise earn — for many households the effective return on a well-sited system compares favourably with a savings account, though it is far less liquid.
Finance
A solar loan is a credit agreement. Read the APR and the total repayable, not the monthly figure — over ten years the interest can add a substantial fraction to the cost of the system.
The system is still yours, so you keep the export payments and the generation benefit. The question is simply whether the monthly saving comfortably exceeds the monthly repayment, and whether it still does if electricity prices fall.
Be careful with finance arranged by the installer. It may be competitive, and it may not be — compare it against a general personal loan or a further advance on a mortgage before accepting it.
Rent-a-roof
A third party installs and owns the system, you get the electricity it generates while you are using it, and they keep the export payments. It costs nothing up front, and you do not own an asset.
The thing to understand before signing is the effect on your property. These arrangements involve a long lease on your roof, commonly twenty to twenty-five years, and that lease binds a future buyer.
Mortgage lenders vary in how they treat it, and some buyers walk away rather than take on an agreement they do not understand. If you might sell within the term, get the lease reviewed by your solicitor before you commit — not afterwards.
What to compare
Ask every installer to quote the cash price, plainly, even if you intend to finance. That is the number you compare between installers; the finance is a separate product and should be compared separately.
Then work out cost per kW installed on the cash price, and compare that across quotes. It is the only way to compare systems that propose different sizes.
The short answer
Cash available: buy outright. Lowest lifetime cost and no complications when you sell.
No cash but a solid saving case: finance — comparing the installer's offer against an ordinary personal loan, on total repayable rather than monthly cost.
Rent-a-roof: only with the lease reviewed by your solicitor, and think hard if you might move within twenty-five years.
Ready to compare solar?
Compare Solar Panels is our dedicated site for this category, with the detail, local coverage and a quote form.
Common questions
Does solar add value to a house?
Evidence is mixed and depends on the system, its age and whether it is owned outright. An owned system is generally viewed more positively than a leased roof.
Is installer finance a good deal?
Sometimes. Compare the APR and total repayable against a personal loan or a mortgage advance before accepting it as the default.
Can I get out of a rent-a-roof agreement?
Usually only by buying out the system, if the contract allows it at all. Check the exit terms before signing rather than assuming there are some.
Who gets the export payments?
You, if you own the system. Under rent-a-roof they normally go to the operator, which is how the arrangement pays for itself.
Before you request a quote
What this should cost, what moves the price, and the questions to put to any supplier.
Solar Panels
Solar is one of the few home improvements with a genuine return, and one of the easiest to overpay for. The spread between quotes on the same roof is routinely thousands.
Costs and buying guide →Home & Family
The decisions that involve your house and the people in it are the ones worth getting quotes on. Here is how each one works, what it should cost, and where to compare.
See the category →How to compare quotes
A method that works whether you are buying a stairlift or renewing a waste contract.
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