How Does Commercial Solar, Battery and EV Charger Finance Work?
Equipment Finance
Commercial solar · Batteries · EV chargers
Solar on a business roof is equipment bolted to a building, and that one fact shapes the finance. This guide covers how lenders fund panels, batteries, EV chargers and efficient plant, how buying compares with a lease, a power purchase agreement or a $0 upfront installer offer, what to check before you sign the installer's contract, and what changes when you rent the premises.
Quick Answer
Australian businesses can finance commercial solar, batteries, EV chargers and efficient plant through a loan or chattel mortgage, a lease or rental, a discounted green loan from a participating lender, or a power purchase agreement where the business buys the electricity rather than the panels. Before signing the installer contract, compare the cash price with the financed price, confirm who owns the roof, get any landlord or property-lender consent the financier requires, and understand the network-connection path. The finance approval can be quick; the project timeline is often controlled by the premises, network approval, switchboard works and installation.
Also called: business solar finance, commercial solar panel finance, EV charger finance, solar power purchase agreement. A lease or rental differs from a loan because the financier owns the system during the term; a power purchase agreement differs again because the business buys the power, not the panels.
How does commercial solar and clean-energy equipment finance work?
Commercial solar finance works like other business equipment finance, with one extra party in the room: the building. A lender funds the system against an itemised installer quote and the business repays over a term, through a loan, a chattel mortgage, or a lease or rental of the system; or the business avoids buying altogether with a power purchase agreement. Because the panels are bolted to a roof, the lender reads the business and the premises together. For an ABN holder the usual starting point is business equipment finance, and our general guide to equipment finance covers the wider asset class. The order that keeps a file moving:
- Get itemised installer quotes. Panels, inverter, battery, chargers and installation each on their own line, priced for cash and made out to the business that will sign.
- Choose a structure. Buy with a loan or chattel mortgage, lease or rent the system, or sign a power purchase agreement.
- The lender assesses the business and the premises. Trading, credit history, and who owns the roof the system will sit on.
- Sign the installer's contract once the finance is approved. Or sign it subject to finance; what to check before you sign covers why.
- Security, sign-offs and network approval. The financier registers its interest, the landlord or the building's mortgagee may be asked to acknowledge it, and the installer applies for the grid connection.
- Installation and settlement. Funds are paid to the installer, usually once the system is installed.
- Certificates and tax. Small-scale certificates are handled with the installer, and the write-off or depreciation with your accountant.
A loan used wholly or predominantly for business-purpose solar will generally sit outside the National Credit Code. ASIC's guidance is that the consumer-credit test turns on purpose: if more than 50 per cent of the advance is for personal, domestic or household purposes, the credit is predominantly consumer credit; if it is not predominantly for those purposes, it is not regulated under the National Credit Act (ASIC, FAQs: Does the credit legislation apply?, last updated 20 October 2020, read 2 October 2026; business-purpose lending only).
Lease or buy is the first fork. Leasing means renting the equipment from a leasing company that owns it; regular payments let you budget over time, but you may end up paying more than you would if you bought upfront, while buying means you pay for and own the equipment outright (business.gov.au, Leasing or buying vehicles and equipment, last updated 23 October 2024, read 2 October 2026; a general comparison, not advice). The most common buying structure is set out in what a chattel mortgage is.
What documents do you need for commercial solar finance?
For a typical commercial solar finance application, prepare the business information the lender needs, an itemised installer quote, the installation address and evidence of who controls the premises. If the business rents, include the lease and landlord consent; if the project needs network, council or body-corporate approval, include what is already available. Batteries, EV chargers, switchboard works and installation should be separately identified so the lender can see what it is funding rather than one bundled project price.
| Document or detail | Why it matters | Common problem |
|---|---|---|
| Itemised cash quote | Shows panels, inverter, battery, chargers, switchboard works and installation separately, and gives the lender the actual purchase price | A single project figure that hides non-recoverable installation or electrical work |
| Business and financial evidence | Lets the lender assess trading, cash flow, credit history and the entity that will borrow | The quote is in a different entity name from the proposed borrower |
| Premises evidence | Shows whether the borrower owns the roof, rents it or sits in strata | The finance is assessed before anyone checks who can approve the installation |
| Lease and landlord consent, if rented | Shows the lease term left, make-good obligations and who keeps or removes the system | The finance term runs beyond the premises lease or consent is only verbal |
| Network or other approvals already available | Shows whether the proposed system can connect and whether export or system-size limits have changed the design | The finance is approved against a design that later has to be resized |
Not every lender asks for the same financial documents. A newer ABN, a low-doc file or a larger project may need different evidence, so the useful rule is to make the asset, borrower and premises line up on paper before the application goes in. If the accounts are not ready, see our low doc asset finance guide.
How long does commercial solar finance take?
Commercial solar finance can be approved faster than the solar project can be completed. Once the lender has a clean application and itemised quote, the finance decision may be only one step; landlord consent, a property-mortgagee acknowledgement, network approval, switchboard upgrades, meter work and the installer's schedule can control the real timeline. Australian Government guidance says a distribution-network connection agreement can take up to 30 business days in some areas, and the order varies by state, territory and network.
| Stage | What has to happen | What commonly causes delay |
|---|---|---|
| Finance assessment | The lender reads the business, quote, asset and premises | Missing financial evidence, credit questions or a quote that is not itemised |
| Premises consent | The landlord, strata body or property lender signs anything the project or financier requires | Lease wording, make-good obligations or a slow consent process |
| Network connection | The distribution network approves the system and any export limit | Technical assessment, a revised design or local network constraints |
| Site works | Switchboard, meter, wiring or structural work is completed | Extra work discovered after the quote or site visit |
| Installation and lender settlement | The installer completes the work and the lender receives the evidence it needs to pay | Installer scheduling, weather, changed components or incomplete completion documents |
Source: Australian Government, Get connected, read 2 October 2026. It says a network connection agreement can take up to 30 business days in some areas and that the process varies by jurisdiction. Finance timing itself varies by lender and file, so no universal approval time is stated here.
Practical sequencing: do not promise the installer a fixed installation date from the finance approval alone. Ask which approval or site work is the critical path, and make the installer contract deal with what happens if network approval changes the proposed system.
What clean-energy equipment can a business finance?
A business can finance rooftop solar, batteries, EV chargers, heat pumps and HVAC, LED lighting and ground-mounted or carport solar, but lenders do not read them all the same way. What changes is how fixed each item is to the building, and how easily a lender could recover it if it had to. The table sets the categories side by side.
| Equipment | Fixed or removable | What the lender looks at | How easily it can be recovered | Where files go wrong |
|---|---|---|---|---|
| Rooftop solar panels and inverters | Bolted to the roof and wired into the switchboard, so they may become fixtures | The itemised quote, the installer, and who owns the roof | Harder once installed; removal means roof and electrical work | No written consent from the roof's owner, or a quote with everything on one line |
| Battery storage | Wall or floor mounted; more self-contained than panels | Capacity, warranty, and whether it pairs with solar | Some lenders treat a standalone battery as harder to recover than panels | A battery quoted without its capacity or installation itemised |
| EV chargers, wall-mounted and pedestal | Wall units are bolted on; pedestals are set into the ground | Where they go, the power supply works, and who owns the car park | Small units with installation costs that cannot be recovered | Switchboard and cabling upgrades buried inside the charger price |
| Heat pumps and HVAC | Plumbed or ducted into the building | New install or replacement, and the building owner's position | Often read as part of the building once installed | A tenant replacing plant the landlord owns, without consent |
| LED lighting and controls | Fixed into ceilings and wiring | The scope of the upgrade and the installer's quote | Little value once removed; read more like fitout than equipment | Sent to a lender as if it were standalone equipment |
| Ground-mounted or carport solar | Structures on the land; carports are building works | Who owns the land, council approvals and structural sign-off | Read with the land; hard to remove | Approvals not in hand when the file goes in |
Sources: PPSR, Protecting your business assets, no page date shown (the PPSR protects interests in goods that are not land or fixtures to land); CEFC, Asset finance, no page date shown (eligible asset types). Both read 2 October 2026. How each item is read and recovered is indicative, from our broking, and varies by lender.
For manufacturers adding solar and storage alongside other plant, our note on financing a renewable plant stack works through the sequence. The asset class as a whole is explained in what asset finance is and how it works, the glossary covers how plant and equipment is defined, and factory owners will find related options on our manufacturing finance hub.
Should a business buy solar, lease it or sign a power purchase agreement?
Buy with a loan or chattel mortgage if you own the building or will stay long enough to want the system as your asset; lease or rent for fixed payments with no upfront outlay; sign a power purchase agreement if you want no asset and can commit to the site for the term, typically 10 to 15 years. A power purchase agreement is a contract where you pay a solar provider an agreed rate per kilowatt hour for the electricity its system produces on your premises, so you usually buy the power rather than the panels. energy.gov.au notes that PPAs may be limited to systems above a minimum size, often 10 kilowatts, and that what you pay over the contract may be more than the cost of buying the system (energy.gov.au, Loans for commercial organisations, no page date shown, read 2 October 2026). A lease or rental sits between the two, with the financier owning the system during the term. Which fits depends on how long you will stay in the building, whether you want the asset on your books, and who will maintain it.
| Question | Loan or chattel mortgage | Lease or rental | Power purchase agreement | Environmental upgrade agreement |
|---|---|---|---|---|
| Who owns the system | The business, with the financier's security registered over it | The financier during the term | Usually the provider; some agreements let the business own it | The building owner, who takes on the finance |
| Upfront cost | Set by the lender; some fund the full installed price | None at the start | Lower or none, depending on the contract | None for the owner; the finance provider funds the upgrade |
| Who maintains it | The business | Set by the lease or rental contract | Usually the provider, as set by the agreement | The building owner |
| How it is paid | Regular repayments to the lender | Monthly instalments | An agreed rate per kilowatt hour for the electricity | A special rate or charge, typically billed with council rates |
| Typical term | Set by the lender, usually matched to the system's working life | Might be 5 or 10 years | Typically 10 to 15 years, but can be longer or shorter | Set by the agreement; can run longer than other loans |
| Tax point (ask your accountant) | Depreciation and interest on the business portion | Repayments may be deductible for a business system | Electricity payments are a running cost | Ask your accountant how the charge is treated |
| What happens at the end | The business owns the system outright once the loan is repaid | Often the business owns the system after the term; the contract decides | Set by the agreement, which may allow renewal, purchase or removal | The charge ends once the finance is repaid |
| What happens if the building is sold | The loan is paid out and the PPSR registration released before settlement, or the system goes with the building by agreement | The financier's payout figure or consent is needed | The agreement either transfers to the buyer or ends, on its own terms | The remaining balance passes to the new owner with the property |
Sources: energy.gov.au, Loans for commercial organisations, no page date shown; business.gov.au, Leasing or buying vehicles and equipment, last updated 23 October 2024. Both read 2 October 2026. Terms are typical; the contract you sign decides. Sale, maintenance and loan term rows are indicative and vary by contract. Upfront and tax rows are general, not tax advice.
The choice between the three buying structures is laid out in chattel mortgage, lease and hire purchase compared, with more depth in our chattel mortgage guide and how commercial hire purchase works. The two kinds of lease are defined in the glossary under finance lease and operating lease.
What is an environmental upgrade agreement?
An environmental upgrade agreement is a three-way finance arrangement between a finance provider, a building owner and a participating local council, where the owner repays the finance to the council over time as a special rate or charge, typically billed with the other council rates. Because the loan is attached to the property, the remaining balance passes to a new owner if the building is sold, and the owner can pass part of the cost to tenants who benefit from lower bills, with the EUA legislation set up so tenants do not pay more. It is open only where the local council takes part; energy.gov.au notes that availability and project eligibility vary across Australia (energy.gov.au, Loans for commercial organisations, no page date shown, read 2 October 2026). It suits an owner-occupier, or a landlord upgrading a building it leases out.
How do you compare a commercial solar finance quote with a cash or $0 upfront offer?
Compare the cash price first, then compare the total contractual cost of each finance structure. A $0 upfront, interest-free, lease or power purchase agreement offer does not make the cost disappear; it changes where the cost sits. Australian Government guidance warns that interest-free solar finance can come with a higher system and installation price or servicing fees, and that a PPA can cost more over its life than buying the system.
| Number or term | What to ask | Why it changes the comparison |
|---|---|---|
| Cash price | What would the exact same system cost with no finance attached? | Exposes whether a finance subsidy or "interest-free" cost has been built into the equipment price |
| Amount financed | Is the lender funding the equipment only, or also switchboard, cabling, installation and fees? | Two offers can quote the same rate against different financed amounts |
| Total repayments and fees | What will be paid over the full term, including establishment, account, documentation or other fees? | The headline rate or "zero interest" label does not show total cost |
| Residual, balloon or end payment | Is there an amount still owing at the end? | A lower periodic payment can hide a larger final amount |
| Early exit or payout | What is payable if you sell the property, move premises, refinance or repay early? | A long solar contract can become a property-sale problem before it becomes an electricity problem |
| PPA electricity rate | Do you pay for all generation or only power used, and does the rate rise with CPI or another formula? | The long-run cost depends on the contract rate and escalation, not an equipment loan rate |
| Ownership and maintenance | Who owns the system during and after the term, and who pays for faults and maintenance? | A lower upfront cost can come with less control and a longer contractual relationship |
Source: Australian Government, Loans from commercial organisations, read 2 October 2026. The page notes higher system prices or servicing fees can sit behind interest-free finance, and that PPA terms and early-exit consequences should be read carefully.
Ask for one itemised cash quote for the system, then put each loan, lease or PPA beside that same system specification. If the equipment, battery size, warranties, switchboard works or monitoring differ between quotes, normalise those first. Otherwise you are comparing two projects, not two finance options.
For a PPA, compare the whole payment formula, not just the opening cents-per-kWh rate. Check whether the rate rises with CPI, a fixed annual percentage or another index; whether you pay for all solar generated or only what the business uses; who receives export credits; who pays for maintenance; and what the buyout or transfer formula is if the property or business is sold. Australian Government guidance specifically says PPA electricity pricing may be indexed over time and that the total amount paid over the contract can exceed the cost of buying the system.
If a PPA rate rises by a fixed percentage or with CPI every year, the rate in the final years of a 10 to 15 year term can sit well above the opening rate. The relevant comparison is the full stream of contracted electricity payments over the term, set against your expected grid tariff, not the opening cents-per-kWh figure. The actual rate, escalation rule and buyout terms are set by the agreement you are offered.
How do you work out if commercial solar and a battery actually pay for themselves?
Work out the project economics from the business's load profile, tariff and network limits before adding the finance. The electricity bill total alone is not enough. You need to know when the business uses power, how much solar will be self-consumed, how much may be exported or curtailed, whether the tariff includes demand charges, and whether a battery can shift energy or reduce peak demand. Then add the finance repayments and fees to see the actual cashflow result.
| Input | What it tells you | Why it changes the finance decision |
|---|---|---|
| 12 months of electricity bills | Tariff, seasonal usage, fixed charges and any demand charge | Shows the cost base the project is trying to reduce |
| Interval meter data | When the business actually uses electricity through the day | Shows whether solar generation lines up with business demand instead of relying on annual averages |
| Daytime load | How much solar can be self-consumed as it is generated | Self-consumed solar usually replaces electricity bought at a higher rate than the export tariff |
| Maximum demand | When the business hits its highest grid draw | A battery may have extra value if it can shave a demand-charge peak |
| DNSP connection and export limits | How large the inverter can be and how much surplus power can leave the site | Generation above the export limit can be curtailed, reducing the value assumed in the sales model |
| Feed-in tariff and time-of-use tariff | What exported solar earns and what grid electricity costs at different times | Changes the value of exports, battery charging and battery discharge |
| Battery usable capacity and power rating | How much energy can be shifted and how quickly the battery can discharge | A large battery is not automatically useful if the business cannot cycle it economically or it cannot cover the relevant demand peak |
| Efficiency, degradation and warranty limits | How much stored energy is lost and how usable capacity may change over time | Installer savings should be tested against the battery that will exist in later years, not only day one |
| Finance repayments and fees | The contractual cash outflow | Turns an energy payback calculation into the business's real cashflow decision |
Australian Government guidance says solar savings can come from self-consumption, exports and reducing peak demand, and that a battery can also reduce bills by shifting energy from cheaper periods to expensive periods or by reducing a demand-charge peak. It also notes that export limits can cause surplus generation to be curtailed rather than sold. The business case should therefore be tested against the site's actual electricity use, not a generic household-style payback assumption.
Sources: Australian Government, How solar pays for itself and batteries reduce bills, Electricity pricing plans and tariffs, and Batteries, all read 2 October 2026.
Value of self-consumed solar + realistic export credits + demand-charge savings + battery time-shifting value - maintenance - finance cost = an indicative annual cash benefit. The business should then test that result against the expected time at the site, system warranty period and its own required return.
What should you check before you sign the solar installer's contract?
Before signing the solar installer's contract, check that the proposed system is the system you actually want, that any finance condition protects you if funding does not proceed, and that the contract explains what happens if network approval, switchboard work or the final site inspection changes the design or price. Check the component models, warranties, installer identity, deposit, cancellation and exit terms, who submits the network application, who pays for extra electrical work, and which verbal sales promises have been written into the contract. Australian Government guidance specifically says to read cooling-off and exit-fee terms and to put sales assurances into the written contract.
| Offer in the quote | What it is | Who owns the system | What to compare it against |
|---|---|---|---|
| Interest-free finance from the installer | Repayments with no stated interest, arranged by the installer | The business | The cash price of the same system; suppliers may charge more, and servicing fees vary by state |
| Solar lease or rental through the installer | Monthly instalments over a term, often 5 or 10 years | The financier during the term | The total of all instalments against the cash price |
| Power purchase agreement | An agreed rate per kilowatt hour for the power the system produces | Usually the provider | The rate and any indexation against your current tariff, over the whole term |
| Equipment finance you arrange yourself | A loan or chattel mortgage against the cash quote | The business | The repayment against the installer's own estimate of your bill saving |
Sources: energy.gov.au, Loans for commercial organisations, no page date shown, read 2 October 2026. Comparisons are general, not advice; the contract you are offered decides.
What protection does a business get when it buys solar?
A business buying solar is covered by the consumer guarantees when the goods or services cost $100,000 or less, so most small business systems carry the same guarantees as a household purchase: acceptable quality, fit for the purpose you told the seller about, and installation with due care and skill (ACCC, Who is protected, read 2 October 2026). The ACCC's solar guidance says suppliers must not mislead about cost, savings or eligibility for rebates, must not hide termination costs on solar power agreements or the assumptions behind a savings estimate, and that lead-generation claims such as no cost solar or a system that pays for itself can be misleading. Where a business counts as a consumer and the sale was unsolicited, door to door or by phone, the guidance describes a 10-day cooling-off period with no payment taken during it, and a cancellation goes to both the supplier and any finance company (ACCC, Solar panel systems and home batteries, updated 28 June 2026, read 2 October 2026). A system costing more than $100,000 generally sits outside the guarantees, so the contract terms carry more weight; that reading is one for your solicitor.
Should the finance be approved before you sign?
Yes. The safer sequence is to have the finance approved before becoming unconditionally committed to the installer, or to sign a contract with a finance condition that actually protects the business if funding does not proceed. A business that signs first and finances second can be locked into a price, a deposit and an install date with no funding behind them. Get quotes from more than one installer for the same system specification and ask for the cash price as well as the financed price.
Should you pay a solar installer deposit before finance is approved?
Do not assume an installer deposit is refundable if the finance fails. Before paying it, check whether the installation contract is genuinely conditional on finance, the exact point when the deposit becomes non-refundable, what happens if the lender approves less than the project cost, and what happens if network approval requires a smaller system, lower export limit or extra switchboard work. The finance approval, installer contract and deposit terms should tell the same story before money changes hands.
How does network approval affect the finance and the write-off?
Network approval can control when the system is allowed to connect and switch on, but lender settlement and the tax timing are separate questions. Australian Government guidance says the distribution network service provider connection agreement can take up to 30 business days in some areas and will state any limit on inverter size or solar export. Export limits matter to the finance because generation above the limit may be curtailed rather than sold, which can reduce the savings assumed in the quote. Limits can be tight: in South Australia, a smaller system on most of the network chooses between a fixed export limit of 1.5 kW per phase and a flexible limit of up to 10 kW per phase that moves with network conditions, and a system that fails its registration and capability test falls back to the default limit (SA Power Networks, Flexible Exports offered to all customers in South Australia, 17 June 2025, read 2 October 2026; South Australia and smaller systems only, cited as an example).
Being physically installed before 30 June does not automatically prove that a depreciating asset was first used or installed ready for use by 30 June. The ATO's instant asset write-off test is tied to first use or installation ready for use. If commissioning, connection or another condition is still outstanding, the timing needs to be checked against the tax rules and the actual facts rather than assumed from the install date alone. The timing test is worked through in the installed ready for use test.
Sources: Australian Government, Get connected, read 2 October 2026; ATO, Instant asset write-off for eligible businesses, last updated 28 August 2026, read 2 October 2026. Tax treatment depends on the facts and is a question for your accountant.
What does a lender secure when solar is fixed to the building?
Solar fixed to a building creates a security problem lenders do not face with a truck or freestanding machine. The Personal Property Securities Act 2009 defines fixtures as "goods, other than crops, that are affixed to land", and section 8(1)(j) excludes "an interest in a fixture" from the Act (Federal Register of Legislation, Personal Property Securities Act 2009, Compilation No. 22, 14 October 2024, read 2 October 2026). The PPSR's construction guidance lists land, fixtures on land and interests in land as not affected (PPSR, Construction, no page date shown, read 2 October 2026), so once equipment is treated as a fixture, ordinary PPSR asset security becomes more complicated. Whether a particular solar system is legally a fixture depends on the facts and is a question for a solicitor. That is why some financiers ask for additional landlord, landowner or property-mortgagee acknowledgements before funding fixed solar equipment.
So the lender protects itself through the contract, and some of that lands on the business. You may be asked for:
- Finance terms that keep the system the financier's personal property until it is paid off.
- A security registered before installation, while the equipment is still goods.
- A signed acknowledgement from whoever holds the land, with a right of entry so the financier can reach the system.
How a registration works, and how it is released, is covered in our PPSR glossary entry. The same question of what is fixed to the premises comes up in fitout finance.
Will your landlord or property lender need to sign anything?
Often, yes. Where the premises are leased, the landlord is usually asked to consent to the installation and to acknowledge that the financier can enter and recover the system. Where the business owns the building and it is mortgaged, a lender may ask the business's own property lender to sign an acknowledgement too, so the two financiers are clear on what each holds. Asking early saves weeks; a landlord or mortgagee who has not seen the request is the slowest part of many files.
If the property or business is sold, the security has to be dealt with as part of the transaction. The detailed payout, transfer and early-exit paths are set out in what happens if you sell, move, refinance or exit early.
Can you finance solar or EV chargers on premises you rent?
Yes, a business can finance solar or EV chargers on premises it rents, with the landlord's written consent and a lease long enough to carry the finance. energy.gov.au's guidance is that if your business premises is rented or leased, or is in a multi-occupancy property owned under strata title, you probably do not own the roof, so you will need permission to install rooftop solar (energy.gov.au, Solar for rentals and multi-occupancy properties, no page date shown, read 2 October 2026; lease terms vary). The two files read differently.
Owner-occupier file
- The title holder signs, and is usually the borrower
- The existing mortgagee's position is checked
- The finance term can run as long as the asset allows
- The system stays with the building you own
Tenant file
- Written landlord consent is needed
- A lease amendment may be needed
- The lease term left is read against the finance term
- Make-good and removal terms are checked
- Who keeps the system at lease end must be agreed
Whether owning the premises or leasing them suits your business is weighed up in buying a business with or without the property, and cafes and food businesses on a shop lease will find related options on our cafe finance hub. A tenant whose landlord is reluctant to fund solar can point to an environmental upgrade agreement, where the owner finances the system and recovers part of the cost from tenants who benefit.
What is a green lease, and does it help a tenant finance solar?
A green lease, also known as a best practice lease, is a contract in which the tenant and building owner look at ways to jointly lower energy use (energy.gov.au, Buildings, owners and tenants, no page date shown, read 2 October 2026). It can make a landlord more open to a rooftop system, but a green lease does not by itself give consent to install. The lender will still want the landlord's written consent for this system.
What happens at the end of the lease?
Usually one of two things: the tenant removes the system and makes good the roof, or the system is left for the landlord under an agreed transfer. Which applies should be settled in writing before installation, not at lease end. Some government programs build the consent step into their terms. Under Victoria's Solar for Business program terms, for example, a tenant applicant and the landlord of the property must have signed the program's Landlord and Tenant Guidelines and Consent Form (Solar Victoria, Solar for Business Program general terms and conditions, last updated 3 April 2023, read 2 October 2026; Victoria and program-specific, cited for the consent step only).
A cafe owner trading through a company wants a small rooftop system on the shop it leases. The landlord gives written consent, and the make-good clause is amended to say whether the system is removed or left at lease end. With only a short time left on the lease, the owner weighs a chattel mortgage, which leaves a system to remove or transfer, against a power purchase agreement, where the provider usually owns the panels; the trade-offs are in buy, lease or power purchase agreement.
Illustrative only, no rate, term or offer implied. Actual outcomes depend on the business, the premises and lender policy.
What happens if you sell, move, refinance or exit the solar finance early?
The exit depends on the structure you signed. A loan or chattel mortgage usually needs a payout figure and release of the financier's security; a lease or rental follows its early-termination and end-of-term clauses; and a PPA follows its assignment, buyout or termination formula. Do not wait until a property sale or move to discover these terms. Read the exit before signing the original agreement.
| Event | What usually has to be dealt with | What to read before signing |
|---|---|---|
| Sell the commercial property | Payout, PPSR release, financier consent or PPA assignment/buyout before settlement | Sale, assignment, early payout and transfer clauses |
| Sell the business but keep the property | Whether the borrower changes, whether finance can be novated and who receives the solar benefit | Change-of-control, assignment and borrower-consent clauses |
| Move to new premises | Whether the equipment can be removed, who pays removal and make-good, and whether the new site can accept the system | Removal, relocation, make-good and landlord-consent clauses |
| Refinance the property | Existing solar financier acknowledgements and any security or fixture issues the new property lender wants resolved | Mortgagee acknowledgement and security provisions |
| Repay early | A payout figure, any break or early-termination amount and release of the security registration | Early payout formula and discharge costs |
| Replace the roof | Removal and reinstallation of panels, consent from the financier or PPA provider, and any warranty consequences | Access, removal, maintenance and reinstatement clauses |
| Add a battery or upgrade solar | Compatibility, warranty, network approval and whether the existing financier or PPA provider must consent | Alteration and additional-equipment clauses |
Under a financed ownership structure, the business will usually need a payout figure before the lender releases its security; what a payout figure includes explains the mechanics. Under a PPA, Australian Government guidance says the contract should be checked for the electricity price, term, maintenance, who receives export credits and what happens if you exit early. Under an environmental upgrade agreement, the remaining balance generally follows the property to the new owner.
What if the roof needs replacing during the finance term?
Solar panels may have to be removed and reinstalled before roofing works can proceed. Before financing a system on an older roof, establish who pays for removal and reinstatement, whether the financier or PPA provider must consent, whether removal affects product or workmanship warranties, and whether planned roof replacement should happen before the solar project. The cheap time to solve a roof problem is before panels cover it.
What if the solar installer goes out of business?
The finance debt does not normally disappear because the installer stops trading. The finance contract, product warranties, manufacturer warranties and workmanship warranty are separate rights and obligations. Keep the panel, inverter and battery serial numbers, warranty documents, commissioning records and manufacturer contacts so another qualified service provider can identify the system later. Australian Government guidance also recommends keeping the full handover pack and understanding warranty limitations and insurance treatment.
Sources: Australian Government, Loans from commercial organisations, Warranties and insurance, and Installation day and after, all read 2 October 2026.
What is a green business loan, and who qualifies?
A green business loan is discounted asset finance for eligible energy-efficient equipment, delivered through participating lenders rather than by a government agency directly. Much of it is backed by the Clean Energy Finance Corporation, which works through co-financiers: it does not provide finance to individual borrowers and is not involved in individual financing decisions, so borrowers contact participating lenders. Finance can cover up to 100 per cent of the cost of eligible equipment, and eligible projects can include rooftop solar, battery storage, improved building insulation, heating and cooling, energy-demand management, low-emission or electric vehicles, and industry or farm equipment (CEFC, Asset finance and FAQs, no page dates shown, read 2 October 2026; each co-financier sets its own eligibility and pricing).
What such lenders commonly ask for:
- An asset on the eligible list, matched to the program's criteria.
- An itemised installer quote showing what is being installed.
- Business financials, read the same way as any other equipment application.
A green discount does not change how the business is assessed; it changes the price once it is. Whether a discounted product or a standard equipment loan for the business suits your purchase depends on the asset and the file, and you can check what you could qualify for before you commit.
How do small-scale certificates change the price you finance?
Small-scale technology certificates (STCs) usually lower the solar or battery invoice before the lender sees it: the installer typically claims the certificates and discounts the price, so the tax invoice the lender funds is often already net of them. How GST sits on that discounted price is covered in how GST credits work.
The scheme has just widened for businesses. The Small-scale Renewable Energy Scheme covers small-scale systems such as rooftop solar and batteries and is scheduled to end in 2030. For systems installed from 1 October 2026, solar PV eligibility expands from 100 kW to 1 MW. STC applications for mid-scale systems will not open until mid to late November 2026; mid-scale systems of 100 kW to 1 MW get a fixed 5-year deeming period, and their owners choose between STCs and Renewable Electricity Guarantee of Origin (REGO) certificates (Clean Energy Regulator, Mid-scale solar, last updated 22 September 2026, read 2 October 2026; a new rule, and certificate values move, so no value is given here).
Batteries have their own rules. A battery between 5 and 100 kWh nominal capacity, installed with a new or existing solar system of no more than 100 kW, can earn STCs on the first 50 kWh of its usable capacity, and only one battery system per premises is eligible; the program is aimed at households and small businesses (Clean Energy Regulator, Solar batteries, last updated 31 July 2026, read 2 October 2026; no discount figure given).
This is the federal Cheaper Home Batteries program, which despite its name is open to small businesses. From 1 May 2026 the discount tapers by size: the STC factor applies in full to the first 14 kWh of usable capacity, at 60 per cent from 14 to 28 kWh, and at 15 per cent from 28 to 50 kWh, and the factor itself now steps down every six months, which the regulator says is designed to keep the discount at around 30 per cent for small, medium and large batteries (Clean Energy Regulator, Changes to rebate for solar batteries from 1 May, published 17 February 2026, read 2 October 2026). On a commercial-sized battery, certificates cover a much smaller share of the price than on a home battery, so more of the battery is financed.
The installer matters to the certificates. To design or install solar or battery systems and claim STCs, installers and designers must be accredited by Solar Accreditation Australia, and installers must also hold an unrestricted electrical licence in the state or territory of installation (Clean Energy Regulator, Rooftop solar installers and designers, last updated 18 September 2026, read 2 October 2026). A lender funding a certificate-discounted invoice will want to see that the installer qualifies.
A manufacturer that owns its factory installs a mid-scale rooftop array and a battery from one accredited installer. The installer's invoice arrives net of certificates, itemised by panels, inverter, battery and installation, and the lender asks for the installer's accreditation. Because the factory is mortgaged, the lender also asks the property lender to sign an acknowledgement, as covered in landlord and property lender sign-offs.
Illustrative only, no rate, term or offer implied.
How do you finance EV chargers, alone or with the vehicles?
EV chargers can be financed on their own, bundled with the electric vehicles they charge, or inside a wider solar and battery project; and a business that does not want to own them can pay for charging as a service. On their own, chargers are small items with a lot of installation cost, so lenders often prefer them inside a larger facility. The table sets out the options.
| Set-up | What is financed | What the lender reads | Tax point |
|---|---|---|---|
| Chargers alone at owned premises | The chargers and their installation | The itemised quote, the power supply works, the property's mortgagee | Each charger is tested on its own against the $20,000 per-asset write-off limit |
| Chargers alone at leased premises | The chargers and their installation | Landlord consent, lease term left, removal at lease end | Same per-asset test; your accountant confirms how installation costs are treated |
| Chargers bundled with electric vehicles | Vehicles and chargers, on one facility or two | The vehicles as primary security, with the chargers alongside | The car limit applies to cars, not to chargers |
| Chargers inside a wider solar and battery project | One project, itemised by component | The whole installation and the premises | Each asset is tested separately; most systems sit above the write-off limit |
| Charging as a service | Nothing; the provider owns the chargers and the business pays a subscription | No lender; the provider reads the business and the site | A running cost, not an asset you own; ask your accountant |
Sources: CEFC, Asset finance, no page date shown (eligible vehicles); ATO, Instant asset write-off for eligible businesses, last updated 28 August 2026; ATO, Car thresholds from 1 July, published 9 June 2026. All read 2 October 2026. Lender reads are indicative and vary by lender; tax points are general, not tax advice.
The car limit for 2026-27 is $69,883, the maximum value you can use to calculate depreciation on a car used for business and first used or leased in 2026-27 (ATO, Car thresholds from 1 July, published 9 June 2026, read 2 October 2026; cars only, not chargers, and only the business portion). Vans and utes are covered in our business vehicle finance guide, and businesses running several vehicles in fleet finance.
A trades business buys two electric vans and three chargers for its yard. It can put the vans and chargers on one facility or two; the lender reads the vans as the main security and asks for an itemised quote that separates the chargers from the switchboard works. The alternative is charging as a service, where a provider owns the chargers. The car limit is read against the vans only where they are cars for tax, which is one for the accountant. More options for trades are on our tradie finance hub.
Illustrative only, no rate, term or offer implied.
Do solar panels, batteries and chargers qualify for the instant asset write-off?
A business may be able to claim deductions for commercial solar, batteries or EV chargers, but that does not mean the whole project can be immediately written off. From 1 July 2026, an eligible small business with aggregated turnover under $10 million that uses simplified depreciation can claim the instant asset write-off for the taxable-use portion of an eligible depreciating asset costing less than $20,000 and first used or installed ready for use in that income year (ATO, $20,000 instant asset write-off (IAWO) here to stay, published 4 September 2026, and Instant asset write-off for eligible businesses, last updated 28 August 2026, both read 2 October 2026; business portion only, not tax advice).
An asset that costs at or above the limit is not written off; small businesses using simplified depreciation pool the business portion of most higher-cost assets, those with a cost equal to or more than the instant asset write-off limit, in the small business pool (ATO, Simpler depreciation for small business, last updated 28 August 2026, read 2 October 2026). In the pool, the business claims 15 per cent of the taxable purpose portion in the year the asset is first used or installed ready for use, then 30 per cent of the opening pool balance each year after (ATO, How a small business pool works, last modified 17 June 2026, read 2 October 2026). The rule itself is in our instant asset write-off explainer, and larger purchases in financing plant above the write-off threshold. If the network connection is still pending near 30 June, see how network approval affects the write-off. How a system is split into assets, and how it is deducted, is a question for your accountant.
One incentive still turns up in solar quotes and online answers: the 20 per cent small business energy incentive. It is not available for a system installed now. It applied to eligible assets first used or installed ready for use between 1 July 2023 and 30 June 2024, and it never covered assets whose sole or predominant purpose is generating electricity, such as solar panels (ATO, Small business energy incentive, last updated 7 May 2025, read 2 October 2026).
Who gets clean-energy equipment finance approved, and what gets it declined?
A clean-energy equipment finance application is strongest when the business, the system and the premises line up: an itemised quote from an accredited installer, trading the lender can read, and the roof owner's written sign-off in hand. You will see claims online that a business needs a minimum trading history before it can finance solar; there is no single rule. Lenders vary, and a newer ABN has paths, often with a deposit or other support behind it. Past credit defaults or a tax debt do not automatically rule a business out either; lender appetite varies, and the explanation behind the record matters. In our broking, files rarely stall on the panels; they stall on the paper around them.
From our broking, indicative
Indicative, from Switchboard solar, battery and charger files for ABN holders, as at October 2026. Not a quote, offer or approval likelihood. The three things that most often stall these files:
- No written landlord consent, or a premises lease that ends before the finance term.
- An installer quote that does not itemise panels, inverter, battery and installation.
- Standalone batteries or chargers, which some lenders treat as harder to recover than panels.
Patterns drawn from our own files, not a quote, offer or indication that any application will be approved. They move with lender appetite, the installer and the premises, and are re-dated at each review. Not financial advice.
If a first application on a newer business has been knocked back, see what to do when a new ABN is declined; for any equipment decline, next steps after an equipment finance decline. Where the accounts are not ready, our low doc asset finance guide covers alternative evidence. When you have an installer quote in hand, you can talk through your equipment purchase with us, or see where your file stands first.
What should you do after the solar system is installed and financed?
After installation, keep the finance documents and the solar handover documents together, get access to the monitoring platform, confirm the system is actually switched on and generating, review the electricity plan once real generation data exists, and make sure the business knows who handles warranty and insurance claims. The first months are where a projected finance case becomes an operating asset.
- Keep the handover pack. Retain the contract, system specifications, electrical safety certificate, commissioning sheet, warranties, operating instructions and installer details.
- Take control of monitoring. Make sure the business has the login, not only the installer or former property owner, and record expected generation so underperformance is visible.
- Confirm insurance. Tell the relevant insurer about the rooftop system, battery or chargers and confirm how damage and business interruption are treated.
- Re-check the electricity plan. Solar changes when and how much power is bought from the grid; the old tariff may no longer be the best fit.
- Match maintenance to the warranties. Keep inspection and maintenance records where the product or workmanship warranty requires them.
- Prepare for a future sale or move. Keep the payout process, PPSR details, PPA or lease transfer clause, warranties and monitoring access easy to hand over to a buyer, landlord or incoming tenant.
Australian Government guidance says the post-installation documents should include the sale contract, specifications, maintenance and operating instructions, electrical safety documentation, warranties, installer contacts and commissioning information. It also recommends monitoring generation and electricity use so faults and underperformance can be identified. If the business moves into premises that already have solar, ask for the same records, recent generation evidence and access to the monitoring account.
Sources: Australian Government, Installation day and after, Monitor your solar system, and Solar for businesses, all read 2 October 2026.
Commercial solar finance is a business, equipment, property and energy transaction at the same time. Compare the cash price before comparing finance, test the savings against the site's actual load profile and network limits, get the borrower, quote and premises documents aligned, and do not confuse finance approval with a finished project. Landlord consent, DNSP approval, export limits, switchboard work and installation can still change the timing or economics. Before signing, read the deposit, escalation, payout, assignment, roof-access and early-exit clauses. After installation, keep the commissioning and warranty pack, monitor actual generation, review the electricity plan and preserve a clean payout or transfer path for any later sale, move or refinance.
Key takeaway: approve the project on three files at once: the finance file, the premises file and the energy-project file.Frequently asked questions
Yes. A business can usually finance solar panels as equipment, through a loan or chattel mortgage, or use a lease, rental or power purchase agreement instead. The lender reads the business, the itemised installer quote and who owns or controls the roof. See how commercial solar finance works.
You can put solar panels on a business premises if you own the roof or have permission from whoever does. A tenant, or an owner in a strata building, needs the landlord's or body corporate's consent, and the local network must approve the grid connection. See solar on premises you rent.
Yes, a business can usually claim solar panels used for the business through depreciation. An asset costing less than $20,000 can be written off in the year it is installed ready for use if aggregated turnover is under $10 million; a larger system goes into the small business pool. Your accountant confirms how it applies. See solar and the instant asset write-off.
Items eligible for the instant asset write-off are depreciating assets costing less than $20,000 each, first used or installed ready for use in the year, for a business with aggregated turnover under $10 million that uses simplified depreciation. Your accountant confirms what qualifies. The rule is explained in what the instant asset write-off is.
Yes, a business can get an EV charger on finance, on its own, bundled with electric vehicles, or inside a wider solar and battery project. Because installation and switchboard work can be a large part of a small charger project, lenders often prefer the charger inside a larger facility. See financing EV chargers for a business.
What qualifies for a green loan is set by each participating lender's eligible asset list, which commonly includes rooftop solar, batteries, efficient heating and cooling, and electric vehicles. The business is still assessed like any other equipment application; the green discount changes the price, not the assessment. See what a green business loan is.
A business solar loan is generally not transferred to another person. When the building or business is sold, the loan is usually paid out and the security released before settlement. A lease or power purchase agreement may transfer to a buyer only if its assignment terms allow. See selling, moving or exiting early.
The disadvantages of PPAs are a long commitment, typically 10 to 15 years, no ownership of the system under most agreements, an electricity rate that may be indexed each year, a total cost that can exceed buying the system, and terms that can complicate selling or leaving the building. See comparing a PPA with buying.
Getting out of a business solar lease or rental early usually means paying what the contract says is owed under its early-termination clause, and getting the financier's consent if the building is sold. The contract decides, so read the exit terms before you sign. See what an early exit involves.
For a business tenant, solar works with a rental when the landlord gives written consent, the lease runs long enough to cover the finance, and the lease says whether the system is removed or left for the landlord at the end. See what happens at the end of the lease.
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