Green Loans: Securing Finance For Your Off Grid Solar System
Green loans are available for funding renewable technologies like solar and batteries.
Green Loans: Securing Finance For Your Off-Grid Solar System (Australia 2025)
Australia is embracing renewable energy like never before, and with the recent announcement by the Australian Federal Government to subsidise batteries through the Cheaper Home Batteries Program, off-grid solar systems are becoming an increasingly popular solution for homeowners in rural or remote areas, those building tiny homes, or anyone seeking energy independence. But while the benefits of going off-grid are substantial—lower energy bills, reduced environmental impact, and greater self-sufficiency—the upfront cost of solar panels, batteries, and installation can be a significant hurdle.
Enter the green loan—a financial product designed to make sustainable upgrades more affordable. In this article, we explore how Australians can use green loans to finance their off-grid solar systems and what to consider when choosing the right option.
What Is a Green Loan?
A green loan is a type of financing specifically tailored for environmentally friendly projects. This includes renewable energy installations like solar PV systems, battery storage, water-saving fixtures, and electric vehicles. Offered by both government-backed schemes and private lenders, green loans typically feature:
Low interest rates
Flexible repayment terms
Eligibility criteria focused on sustainability
For off-grid solar system buyers, green loans can dramatically reduce the financial pressure of going renewable and accelerate the return on investment.
Off-Grid vs Grid-Connected: Why Finance Differently?
Off-grid solar systems differ from typical grid-connected systems in that they require additional infrastructure—most notably battery banks and often backup generators. This means:
Higher up-front cost than a standard solar setup
Greater independence and resilience
Ideal for remote or regional properties, tiny homes, farms, and bushland retreats
Because of these differences, it’s important to find a green loan that allows for financing both solar panels and batteries, which many traditional home improvement loans may not support.
Government Support for Green Loans
1. Household Energy Upgrades Fund (HEUF) – Federal Program
The Australian Government’s $1 billion HEUF scheme, rolling out in 2024–2025, supports discounted green loans via partner lenders. The program encourages households to install energy-efficient upgrades including:
Battery-ready solar PV systems
Standalone battery systems
Efficient appliances and lighting
Through lenders like Plenti and Westpac, eligible households can access loans at below-market interest rates to finance off-grid solutions. You must meet lender criteria and ensure products are compliant with Clean Energy Council (CEC) standards.
2. State-Based Loan Programs
Each state offers its own support for clean energy finance. Some highlights include:
Victoria: Interest-free loans up to $8,800 for battery storage through Solar Victoria
New South Wales: Empowering Homes Program provides interest-free loans for solar battery systems in select regions
ACT: Zero-interest loans up to $15,000 under the Sustainable Household Scheme
Though these programs often target grid-connected homes, some regional households installing off-grid systems may still qualify—especially if they are replacing a diesel generator or improving overall efficiency.
Private Sector Green Loan Options
If you're not eligible for a government program—or if you want more flexibility—numerous banks and lenders in Australia offer green loans for solar and battery systems, including:
Commonwealth Bank Green Loan – For CommBank mortgage holders; borrow up to $30,000 at 0.99% p.a.
Brighte Green Loan – Interest rates start from around 7.99% p.a. with fast approvals
Plenti Green Loan – Tailored for solar, batteries, and home energy upgrades; rates from 4.99% p.a.
Handypay – Offers unsecured loans over 1–10 years for solar and battery systems
Many of these lenders partner directly with solar installers, which simplifies the application and funding process.
What Can You Finance?
A green loan for an off-grid solar system can typically cover:
Solar panels and racking
Battery bank and inverter
Charge controller and wiring
Off-grid system monitoring equipment
Backup generator (diesel or hybrid)
Installation and setup costs
Optional extras like rainwater pumps or energy-efficient appliances
Check with your lender to ensure your planned components are eligible, especially if they’re not grid-connected.
Things to Consider Before You Apply
Eligibility Criteria – Most green loans require a decent credit history, and some are limited to mortgage holders or homeowners.
Loan Repayments vs Energy Savings – Off-grid systems won’t pay back via feed-in tariffs like grid-tied systems. Factor in how much you’ll save on fuel or grid extension costs.
Accredited Installer – Choose a Clean Energy Council (CEC) accredited installer to ensure your system qualifies for any rebates or loan programs.
Future-Proofing – Make sure your loan allows for scalability. You might want to expand your system later as your energy needs grow.
Hidden Costs – Be aware of potential upfront costs not covered by the loan, like council permits, trenching, or insurance.
Conclusion: Green Loans Make Off-Grid Living Possible
Whether you’re building a tiny home in the bush, setting up a self-sufficient lifestyle, or simply want to stop relying on the grid, an off-grid solar system is a powerful investment in your future. Thanks to green loans, the upfront cost no longer has to be a barrier.
By exploring government-backed schemes and competitive private financing, Australians can now embrace renewable energy with greater confidence and affordability. The sun is free—now, the path to harnessing it is more accessible than ever.
