Quick answer
Business solar finance funds the purchase and installation of commercial solar panels, inverters and batteries, usually with the system as security. Common structures include chattel mortgages, equipment loans and leases. Ownright Custom Finance arranges business solar finance Australia-wide for companies, trusts, partnerships and sole traders.
Key points
- Panels, inverters, batteries and installation can often be financed together
- Chattel mortgage, equipment loan and lease options are common
- Tenants and owners are assessed differently
- Tax treatment and incentives are worth confirming with an accountant
- Suits
- Shops, factories, offices, cold stores, clubs, farms
- Security
- The solar system, sometimes property or general security
- Structures
- Chattel mortgage, equipment loan, finance lease
- Australia-wide
- Yes
What is business solar finance?
Business solar finance is a loan or lease used to pay for a commercial solar installation. The lender pays the installer, the business repays over an agreed term, and the solar system itself, or sometimes other business assets, backs the debt. The idea is that the electricity the system produces helps offset the repayment rather than adding a pure extra cost.
Whether that works out depends on the building, the roof, daytime usage and the tariff the business is on. A cold store that runs 24 hours behaves differently to an office that empties at five, and a good installer will model your own pattern before anyone talks about borrowing.
Which businesses use solar finance?
- Manufacturers and warehouses with large roofs and steady daytime load
- Cafes, restaurants and retail shops that run refrigeration and air conditioning
- Medical, dental and professional practices
- Farms, packing sheds and cold stores (see farm solar and renewable finance)
- Clubs, schools, childcare operators and not-for-profits
- Landlords improving commercial buildings
- Transport and logistics operators adding solar to power electric fleets
What can be financed?
| Item | Typically included? |
|---|---|
| Solar panels and mounting | Yes, if itemised on the quote |
| Inverters and monitoring | Yes |
| Batteries | Often, subject to the lender |
| Installation labour | Yes |
| Electrical upgrades | Sometimes, if on the same invoice |
| Charging equipment for vehicles | See EV charging finance |
Which structure suits a solar system?
Equipment is usually the starting point, so the main choices are the ones used across asset finance. A chattel mortgage gives the business ownership from day one with the lender holding security. A finance lease keeps the asset with the lender and offers set choices at the end. A secured business loan or second mortgage for business is sometimes used where the amount is large or the equipment alone does not satisfy the lender. Our guide on the chattel mortgage gives the plain-English basics.
Tax matters here. Depreciation settings, instant asset write-off thresholds and other measures have been temporary or changed from year to year, so your accountant should confirm what applies to your business before you sign.
What do lenders look at?
The business. Trading history, financial statements or BAS, and how the business has performed. See sole trader loans if you trade in your own name.
The system and installer. Reputable, accredited installers and quality equipment give lenders comfort.
The premises. Owning the building is the simplest. If you rent, the lease term and landlord consent matter.
Existing debts. Lenders consider how a new repayment sits alongside current commitments, a topic our guide on serviceability explains.
Are there incentives?
Over the years governments have supported commercial solar through small-scale renewable certificates for eligible systems, state-based programs and tax settings. Eligibility rules cover system size, installer accreditation and timing, and they change. Instead of quoting amounts, we suggest you check the Clean Energy Regulator, business.gov.au and the ATO, then bring the final installer quote to us. The finance can then be built on the real net cost.
How does Ownright help?
Trevor Scott and the Ownright team have been arranging business finance for a long time, and solar is one more asset with its own quirks. We ask about the premises, the lease, the power bill and the plans for growth, then set up a structure that fits. If a bank has said no, perhaps because the business is young or the last tax return looked weak, we look at lenders who weigh the asset and cash flow differently.
Ownright serves businesses in every state and territory. If you would like us to look at your quote, start your application here.
An illustration
Illustrative scenario only. A bakery with large ovens and refrigeration rents a unit on a long lease. The landlord is willing to give consent. A broker might arrange a lease or chattel mortgage on the system, bundle the inverter and monitoring into the same facility, and structure the repayment so that it begins once the system is commissioned.
Mistakes to avoid
- Signing with an installer before finance and landlord consent are sorted
- Oversizing the system compared with daytime usage
- Ignoring maintenance, insurance and inverter replacement
- Treating a temporary tax rule as permanent
- Skipping a check of installer accreditation and warranties
Documents to have ready
- The installer’s itemised quote
- Recent BAS, tax returns or financial statements
- Business bank statements
- A copy of the lease and landlord consent, if renting
- Director or owner ID
Our documents guide and the checklist on BAS and financial statements make gathering them easier.
Looking at the bigger picture
Solar often sits alongside other upgrades such as green equipment finance, energy efficient upgrade loans and business expansion loans. The green finance hub lists the lot.
How should a business think about payback?
Payback depends on the share of generation used on site, the electricity tariff and the system’s cost. A business that uses most of its power in daylight hours tends to get more from a system than one that peaks at night, and batteries shift that balance at an extra cost. A reputable installer should model your actual usage, using bills or interval data, and explain assumptions about tariffs. Treat any projection as an estimate. Lenders will still base approval on your ability to repay from overall business cash flow.
What happens if the business moves or sells?
A solar system is usually fixed to the building. If you own the premises, the system may add to the property and can be considered in a sale. If you lease, the system may stay with the landlord unless the lease says otherwise. Equipment finance normally requires the asset to remain in place and insured, so a planned move should be discussed before signing. Tell us your plans and we can structure the finance with that in mind.
Can a company, trust or partnership borrow?
Yes. Lenders deal with all of these, though the paperwork and guarantees differ. A company may need director guarantees, a trust may need the deed and trustee details, and a partnership may need all partners to sign. See company and trust borrowing for more detail.
Ready to put solar on the balance sheet?
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How it works, step by step
- 1
Step 1
Send us the installer's quote and a few details about the business and the premises.
- 2
Step 2
We choose a structure that matches your tax position, cash flow and ownership of the building.
- 3
Step 3
We approach lenders that fund commercial solar and understand the paperwork.
- 4
Step 4
Documents are signed, the installer is paid and the system goes in.
Frequently asked questions
Can I finance commercial solar if I rent my premises?
Often yes, but the landlord matters. Lenders look at lease length, whether the owner consents to the installation and who owns the equipment on the roof. A long lease with a supportive landlord helps. Bring a copy of the lease and the landlord's consent early so the structure can be settled.
What can be included in a business solar loan?
Panels, inverters, mounting, metering, monitoring and installation labour are typically included, along with batteries where the lender permits. The quote should list each component. Network connection charges and electrical upgrades may be included if they appear on the same invoice. Check with us before ordering.
Is a chattel mortgage or a lease better for solar?
Neither wins every time. A chattel mortgage gives ownership from day one, while a lease can ease the cash demand and offers different end-of-term choices. Tax treatment varies, so your accountant should confirm. We explain the practical differences and arrange whichever structure suits.
Are there tax or government incentives for business solar?
There have been federal and state measures over the years, including small-scale certificates for eligible systems and temporary depreciation settings. Details, thresholds and dates change, so check the Clean Energy Regulator, business.gov.au and the ATO, and speak to your accountant before relying on any particular incentive.
Can I get business solar finance with a tight credit history?
Sometimes. Because the equipment is security and the savings may improve cash flow, some lenders are flexible. A deposit, a longer trading history or additional security can help. We ask about the background and look for lenders with an appetite for your profile instead of lodging blind applications.
How long does approval take?
It depends on the lender, the size of the system and how quickly documents arrive. Smaller systems with tidy paperwork can move faster than large installations needing site details or landlord approvals. We give you a realistic picture once we have seen the quote and the business financials.