Quick answer
Solar installers usually borrow to carry panel, inverter and battery stock, to bridge the time between discounting certificate value on a job and being paid for the certificates, to fund vans and crews, and to take on larger commercial systems. A revolving line of credit suits stock and certificate timing, equipment finance suits vehicles, and invoice or progress finance suits commercial contracts. Banks lend to established installers; non-bank lenders help when growth outpaces the paperwork.
Key points
- The rooftop deeming period drops by a year every January, so a typical system earns fewer certificates in 2027 than in 2026
- Since 1 October 2026, solar systems from 100 kW to 1 MW can create STCs with a fixed five-year deeming period, opening up bigger commercial jobs
- Installers claiming STCs need Solar Accreditation Australia accreditation and an unrestricted electrical licence, and lenders often ask for both
- Certificate value sits in your working capital from installation day until the certificates are sold
Every solar business in Australia has a date circled for the start of each year. On 1 January, the deeming period for rooftop systems shrinks by a year, which means each new system creates fewer small-scale technology certificates (STCs) and the up-front discount customers see gets smaller. Combine that with a scheme that has just expanded to much larger commercial systems, and 2026 to 2027 is a period where solar installers’ finance needs are changing quickly.
This page focuses on the finance questions specific to solar: carrying certificate value, stock, accreditation, and the new commercial opportunity. If your business is mostly battery installs, the electricians’ finance page explains the battery certificate factor in more detail.
Why does the deeming period matter to your cash flow?
STCs for rooftop systems up to 100 kW are created up front, based on how much electricity the system is expected to generate between installation and the end of 2030, when the scheme is due to finish. According to the Clean Energy Regulator, the deeming period is five years for systems installed in 2026, four for 2027, and then falls by one each year until it reaches one year in 2030.
A simple illustration shows the effect. A 6.6 kW system in a zone with a rating of 1.382 creates about 45 STCs in 2026 (6.6 × 1.382 × 5, rounded down) and about 36 in 2027. At an illustrative $38 per certificate, the certificate value per system falls from roughly $1,710 to $1,370. Your actual numbers depend on your zone, system sizes and the certificate price you achieve.
What this means for finance:
- A December rush. Customers who understand the change want installs done before year-end. That pulls more stock purchases, labour and certificate value into a few weeks.
- Quotes that cross the new year. If a quote assumes 2026 certificates and the install slips into January, the margin can disappear. Many installers now build a year-end clause into quotes.
- Less certificate money waiting per job over time. As deeming falls, the amount you carry per rooftop job shrinks. But for many installers, batteries and commercial work are replacing that, so total working capital needs may not fall.
What did the October 2026 expansion change?
According to the Clean Energy Regulator, the Small-scale Renewable Energy Scheme was expanded to cover solar PV systems from 100 kW up to 1 MW installed from 1 October 2026, with a fixed five-year deeming period for these mid-scale systems. Applications to create STCs for mid-scale systems were expected to open in mid to late November 2026. System owners can choose STCs or Renewable Electricity Guarantee of Origin certificates, not both, for the deeming period.
For installers who can do commercial work, this is a meaningful shift:
- Bigger jobs, bigger outlays. A 300 kW warehouse system involves far more panels, inverters, mounting and labour than any residential job, all bought before practical completion.
- More certificate value per job. If the customer assigns the certificates and you discount them off the price, your business could carry a large amount until they’re sold.
- Commercial payment terms. Business customers often pay in stages with 30-day or longer terms, which suits progress payment finance or invoice finance.
- A new timing wrinkle. Systems installed between 1 October and when applications open will have certificate value waiting until the process is live.
If you’re quoting your first mid-scale jobs and wondering how to carry them, talk to us about funding the gap. One minute online, and nothing is lodged against your credit file for asking.
What do lenders look for in a solar business?
Solar companies are assessed much like other trade businesses, with a few extra questions.
| Lender question | Why they ask | What to show |
|---|---|---|
| Are your installers and designers accredited? | STC eligibility depends on Solar Accreditation Australia accreditation and an unrestricted electrical licence in the state of installation | Accreditation numbers and licence details |
| How reliable is your certificate income? | Certificate value is a big part of each job’s revenue | History of certificates created and sold, and how long payment took |
| How much revenue depends on incentives? | Policy changes can move demand quickly | Revenue split across rooftop, battery, commercial and service work |
| What stock are you carrying? | Panels and inverters can lose value as models change | Stock on hand and how fast it turns over |
| Who are your largest customers? | Commercial jobs bring concentration risk | Top customers and their share of revenue |
Products also matter: panels and inverters must be on the approved components list for certificates to be created. Lenders rarely check that themselves, but if something goes wrong, unclaimable certificates turn into a cash hole.
Which kinds of finance fit a solar business?
Revolving credit for stock and certificates. Installers lean on a business line of credit more than anything else: draw as stock arrives and jobs go in, repay as customers and certificate buyers pay. It flexes with seasonal peaks like the December rush.
Equipment and vehicle finance. Vans, utes, trailers, scaffolding and safety equipment are usually financed with a chattel mortgage or similar equipment finance, secured against the asset.
Contract-based funding for commercial work. Progress payment or invoice finance helps carry larger jobs between milestones.
Larger growth steps. Buying another installer, opening in a second state or building a warehouse can call for an unsecured business loan or a property-secured loan.
Our cash flow gap calculator can help estimate how much you’ll be carrying in your busiest month.
Which risks will a lender want you to address?
- Policy dependence. Rebate and certificate settings change. A business with service, maintenance and commercial work alongside rooftop installs is easier to lend to.
- Certificate pricing. Open-market STC prices move. Show how you’ve managed certificate prices in the past, for instance through agreed prices with an agent.
- Warranty obligations. Installer workmanship warranties create future costs. A clean claims record helps.
- Rapid growth. Fast-growing installers sometimes fall behind on BAS and super. Lenders can work with an ATO payment plan, but they need to know about it.
Documents to prepare
- SAA accreditation details and electrical licences for your installers
- Business bank statements, ideally covering a December peak
- A certificate history: systems installed, certificates created and payment dates
- Current stock list and supplier account statements
- Signed commercial contracts, if you’re funding mid-scale jobs
- Your last few activity statements and current tax office balance
Example: an installer moving into commercial systems
An illustrative scenario. A Newcastle solar business with three crews has spent four years on residential rooftop and battery installs. After the October 2026 changes, a local cold storage company asks for a 400 kW system, with the customer assigning certificates to the installer.
The job means buying panels, inverters and mounting worth several hundred thousand dollars, plus extra labour, all before practical completion, while also carrying the certificate value. The bank is interested but wants a full business plan and two years of commercial experience. A non-bank lender instead approves a revolving facility based on bank statements, the signed contract and the business’s history of certificate sales, with the limit structured around the project’s milestones. The installer completes the job, sells the certificates once mid-scale applications open, and clears the balance.
Turning your solar pipeline into a funded plan
Solar businesses are growing into larger, more complex work while incentives keep changing. The right finance gives you room to say yes to jobs you’ve already won and to carry certificate value without stress.
You can start with us in about a minute, and putting in an enquiry won’t show up as a hit on your credit history. Your information isn’t circulated around the lending market, so there’s no stream of finance companies ringing while you’re on a roof. One of our specialists studies your installs, certificate history and contracts, then rings to walk through what’s possible. Please be accurate about turnover, stock levels and the amount you’re looking for, since good information is what lets us put a well-matched option forward from the start.
Frequently asked questions
How do solar installers fund the gap while waiting for STC payments?
Most use a revolving line of credit. The installer usually discounts the certificate value off the customer's price, then waits for the certificates to be created, validated and sold. A revolving limit covers that wait across many jobs and is repaid as certificate payments arrive.
What changed for commercial solar in October 2026?
According to the Clean Energy Regulator, the Small-scale Renewable Energy Scheme now covers solar PV systems from 100 kW to 1 MW installed from 1 October 2026, with a fixed five-year deeming period. Applications for these mid-scale systems were expected to open in mid to late November 2026.
Do lenders ask about my SAA accreditation?
Often, yes. STC eligibility depends on accredited designers and installers, and on approved components. If accreditation lapses, the certificate value you've been discounting may be at risk, so lenders funding certificate-heavy businesses usually want to see it's current.
Can a new solar business get finance?
Equipment finance for vans is often available to new installers, especially with a deposit. Unsecured working capital loans usually want six to twelve months of trading in the bank statements. Accredited installers with a strong order pipeline sometimes get approved sooner.
Will a bank lend to a solar installation business?
Banks lend to plenty of established solar businesses and are often the cheapest option when you meet their criteria. Some are cautious about incentive-driven revenue, so a decline isn't unusual. Non-bank lenders can then assess your bank statements, certificate history and pipeline.