Quick answer
Businesses usually fund solar and energy upgrades with equipment or green asset finance, an unsecured loan for smaller systems, or a property-secured loan when the upgrade is part of a bigger project. Small-scale technology certificates reduce the upfront price of systems up to 100kW, and eligible batteries attract a separate discount that steps down every six months. The aim is repayments that sit at or below the power bill savings.
Key points
- Systems up to 100kW usually come with an upfront STC discount, so you borrow less than the sticker price
- The battery STC factor falls from 6.8 to 5.7 per kWh on 1 January 2027, so installation timing matters
- CEFC-backed green asset finance through some lenders offers discounted pricing on eligible equipment
- In leased premises, landlord consent and who owns the panels need settling before any finance is signed
- Size the system from interval meter data, not the annual bill, so it matches when you use power
Few things a business buys can shrink a monthly bill by more than the repayment they add. Solar, done well, is one of them. That only happens when three things line up: the system is sized to when you actually use power, the upfront discounts are captured properly, and the finance runs over a term that fits the equipment. Get any one of them wrong and a sensible investment turns into another bill.
Here’s how owners fund rooftop solar, batteries and other energy upgrades, what reduces the amount you need to borrow, and how to check the numbers before signing.
What can you fund under “energy upgrades”?
Most lenders will consider:
- Rooftop solar panels, inverters and mounting
- Batteries, alone or alongside a new or existing solar system
- Heat pumps, efficient air conditioning and hot water systems
- LED lighting retrofits and building controls
- Efficient refrigeration, compressors and motors
- Electric vehicles and chargers for the business fleet
The finance approach is similar for all of them. Solar and batteries have the extra advantage of government-backed certificates that cut the price before any loan is involved.
How do certificates reduce what you borrow?
Under the Small-scale Renewable Energy Scheme, eligible solar systems up to 100kW create small-scale technology certificates (STCs). In practice, most installers take the certificates and knock their value off your invoice, so you never see them as a separate payment. Anything bigger than 100kW falls under the large-scale scheme, which works differently and usually suits bigger operators.
Batteries have their own discount through the Cheaper Home Batteries program, which, despite the name, the Clean Energy Regulator says covers small businesses too. As at October 2026, the key settings on its website are:
- Battery size: 5 to 100kWh nominal capacity, with certificates created only on the first 50kWh of usable capacity
- Attached solar: no more than 100kW
- Taper: full value for the first 14kWh, 60 per cent for each kWh from 14 to 28, and 15 per cent from 28 up to 50
- One per premises: one battery claim per meter (NMI) or commercial sub-meter
- A falling factor: 6.8 certificates per kWh for installations from May to December 2026, dropping to 5.7 from January 2027 and continuing to step down every six months until 2030
That last point matters for finance. The discount is fixed on the day the battery is installed, not the day you sign. If a quote assumes this year’s factor and installation slips into January, the net price rises and so does the amount you need to fund. Ask the installer to state which factor the quote uses and who carries the risk if dates move.
Which finance options fit an energy upgrade?
| Option | Suits | Security | Things to know |
|---|---|---|---|
| Green business loan or green asset finance | Solar, batteries, EVs and efficient equipment | The equipment | Some programs are co-funded by the Clean Energy Finance Corporation and priced at a discount |
| Equipment finance (chattel mortgage) | Most commercial systems | The equipment | You own it; terms commonly 3 to 7 years |
| Unsecured business loan | Smaller systems, LED retrofits, quick installs | None, or a director guarantee | Faster, usually costs more in total |
| Secured business loan | Upgrades bundled with a renovation or roof replacement | Property | Longer terms, lower repayments, property at risk |
| Installer or retailer finance | Convenience at point of sale | Varies | Compare the total cost; sometimes the system price is higher to cover the finance |
| Power purchase agreement or solar lease | Businesses that don’t want to own the system | The provider owns it | You pay for power or a fixed fee; check exit costs if you move |
On the green finance point: on 31 July 2026 the government announced that ANZ and the CEFC are adding $150 million to ANZ’s Energy Efficient Asset Finance Program, which has already funded more than 1,600 businesses. Banks are often the cheapest money for this kind of equipment, so if you bank with a lender that runs a discounted green product, ask about it first.
If your bank can’t help (the business is young, the books are behind, or the upgrade is bundled with other work) non-bank and private lenders can step in. Send us a quick outline of the project and we’ll give you a straight read on what’s achievable. Your credit report isn’t pulled at the enquiry stage.
Leasing your premises? Sort this first
Many small businesses don’t own their building. Solar is still possible, but three questions need answering before a lender will sign off:
- Consent. Does the lease allow alterations to the roof and switchboard? You’ll want the landlord’s written approval.
- Ownership. Panels bolted to the roof can arguably become part of the building. The lease, or a side agreement, should say the system belongs to your business and can be removed or bought out at the end.
- Access. An equipment financier may ask for a landlord waiver confirming it can recover the system if needed.
Also compare the system’s payback period with the time left on your lease. A seven-year payback on a lease with three years to run needs a plan, such as an option to renew or an agreement for the landlord to buy the system when you leave.
How to size the system and the loan
Start with your interval meter data (your retailer or distributor can provide half-hourly usage). It shows when you use power, which matters more than how much you use in a year. A café that runs ovens from 5am and closes at 3pm has a very different profile from a bar that trades until midnight.
Then work through:
- System size that matches daytime load, plus any battery to shift solar into evenings or peak tariff periods.
- Net price after STC discounts, ex GST if you’re registered.
- Extras: switchboard upgrades, roof repairs, network connection approval and monitoring.
- Expected savings per month, using your actual tariff, including any demand charges.
- Repayments on the net price over a term shorter than the equipment’s warranty.
The target is repayments at or below the monthly savings. Our equipment finance calculator gives repayments for a given amount and term, and the break-even calculator can help you test the payback under less optimistic assumptions.
Worked example: a produce wholesaler in Adelaide
An illustration only. A family-owned fruit and vegetable wholesaler in Adelaide’s northern suburbs owns its warehouse. Cool rooms run day and night, with heavy loads through the morning picking shift. The quarterly power bill keeps climbing.
| Item | Amount |
|---|---|
| 99kW rooftop solar system after STC discount | $88k |
| 40kWh battery after its STC discount (installed December 2026) | $27k |
| Switchboard upgrade and monitoring | $9k |
| LED retrofit of warehouse lighting | $14k |
| Total (ex GST) | $138k |
The installer’s savings estimate, built from 12 months of interval data, suggests the combined upgrade will cut the power bill substantially, with most savings coming from the cool rooms’ daytime load.
The owners ask their bank about green asset finance, which covers the solar, battery and LED work over five years secured on the equipment. They pay the switchboard work from cash. Because the battery is booked for December, the quote is based on the 2026 certificate factor, and the installer agrees in writing to hold the price if the job slips by a week or two.
Monthly repayments come in below the installer’s conservative savings estimate, so the upgrade is close to cash-neutral from the first bill.
Turning lower power bills into a funded project
An energy upgrade is a sound case to put to a lender: an asset with a long life, a measurable saving and, often, an upfront subsidy. Where owners get stuck is usually the paperwork around it: a bank that’s slow, a lease that needs negotiating, or an upgrade tangled up with other works.
That’s where we come in. Filling in the form takes about a minute, and simply asking doesn’t leave a footprint on your credit file. We don’t scatter your enquiry among dozens of financiers; someone on our team works through it personally and picks up the phone to you. Tell us the system size, the quoted price and your genuine trading figures, so the first finance option we raise is one that fits.
Frequently asked questions
Can I get a business loan for solar panels?
Yes. Banks, non-bank equipment financiers and some specialist green lenders fund commercial solar, batteries and energy-efficient equipment. The panels and inverters can act as security, much like other equipment, and established businesses can often finance the full net cost.
Are small businesses eligible for the battery discount?
The Clean Energy Regulator says the Cheaper Home Batteries program supports households and small businesses. Batteries need a nominal capacity between 5 and 100kWh, certificates are only created on the first 50kWh of usable capacity, and the attached solar system can be no more than 100kW.
What is green asset finance?
It's equipment finance for eligible clean energy and efficiency assets, sometimes offered at a discount because the Clean Energy Finance Corporation co-funds the program. In July 2026 the government and ANZ announced an extra $150 million for one such program. Ask any lender whether your equipment qualifies for a discounted green product.
Can I install solar on a building I lease?
Often, yes, but you'll need the landlord's written consent, and the lease should say who owns the system and what happens when you move out. Equipment lenders may also ask for a landlord waiver so they can access the panels if repayments stop.
Will solar pay for itself?
That depends on how much power you use during daylight, your tariff, the system cost after discounts and the finance cost. Businesses with heavy daytime loads such as refrigeration, manufacturing or air conditioning tend to see the strongest savings. Ask your installer for a savings estimate built from your interval meter data.
Should I wait for battery prices to fall?
Battery prices have been falling, but the STC factor steps down every six months to match. Waiting can mean a cheaper battery with a smaller discount, so compare the net price on a quote now with a realistic estimate later rather than assuming waiting is cheaper.