Solar leasing vs solar financing: Which is right for you in VIC?

The transition to renewable energy is gaining momentum in Australia, and Victoria is no exception.

the government’s push for cleaner energy and various incentives available, many homeowners are considering installing solar panels. However, the initial cost can be a significant hurdle. This is where solar leasing vs solar financing come into play. 

But which option is right for you? In this blog, we’ll explore the pros and cons of each to help you make an informed decision. 

What is Solar Leasing?

Solar leasing is an arrangement where you lease the solar panel system from a third-party provider. You don’t own the system but get to use the electricity it generates.


  • No Upfront Costs: Solar leasing often requires no initial investment, making it accessible for most homeowners.
  • Maintenance-Free: The leasing company is responsible for maintenance, repairs, and upgrades.
  • Lower Monthly Bills: Although you pay a monthly lease fee, your electricity bills generally decrease, often resulting in net savings.


  • No Ownership: You won’t own the system, meaning you can’t claim government incentives and rebates.
  • Long-Term Commitment: Leases often require long-term commitments, which may not be ideal for everyone.
  • Potential Increase in Lease Payments: Some contracts may have clauses that allow for an increase in lease payments over time.

What is Solar Financing?

Solar financing involves taking out a loan to purchase your solar panel system. You own the system and make monthly payments towards the loan.


  • Ownership: You own the system, allowing you to benefit from government incentives and rebates.
  • Increase in Property Value: Owning a solar system can increase your home’s value.
  • Flexible Terms: Many financial institutions offer solar loans with flexible terms and interest rates.


  • Upfront Costs: Even with a loan, you may need to make a down payment.
  • Interest Rates: Depending on your credit score, interest rates can add to the overall cost.
  • Maintenance: You are responsible for the system’s maintenance and repairs.

Government Incentives in Victoria

Victoria offers various incentives like the Solar Homes program, which can provide rebates for solar panel installations. These incentives generally favor solar financing over leasing since ownership is usually a requirement to qualify.

Which is Right for You?

Solar Leasing is Ideal If:

  • You want to avoid any upfront costs.
  • You prefer not to worry about maintenance.
  • You are not concerned about owning the system.

Solar Financing is Ideal If:

  • You want to take advantage of government incentives.
  • You are looking for an increase in property value.
  • You prefer owning the system and having control over it.


Both solar leasing vs solar financing have their merits. Your choice will depend on your financial situation, long-term plans, and desire for ownership. Make sure to consult with financial and solar experts to determine which option is best suited for you in Victoria.


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