Who offers the best solar finance in South Africa? We’ve taken a look at some of the biggest solar finance providers in South Africa and determined the monthly installation cost AND the total cost of the solar system over 3 years.

Please note: This article has been updated (04 December 2023)
- the contents of this article is based on information available at the time of publishing
- Interest rates provided by financial institutions will vary for each consumer based on creditworthiness and other factors.
- Our solar finance comparison is based on a
3kW solar power kit (3kW Inverter, 3kWp solar panel installation, and 3.5kWh battery).

Solar power for homes and businesses is in high demand. In Cape Town, the City has actively encouraged the installation of solar PV installation.

Solar power for homes and businesses is in high demand. Most notably, in Cape Town, the City has actively encouraged the installation of solar PV installation.

Thanks to the current energy crisis, there are now several ways in which you can get solar finance in South Africa:

Option A: InPower Solar Finance
We offer prime -1%!

-The system is fully owned by you when you use InPower's solar power financing option, which works similarly to a solar loan.

What you get!

Our 3kW solar power kit on Finance
5kW Sunsynk inverter
5.5 kW Hubble Am2
8 x Tier1 JA Solar Panels 455W
Full installation (including Compliance Certificate)

What you Pay!

R46 691 deposit (once-off)
36 month term
R 3 554 monthly installment
Includes interest rates at prime -1%
No hidden fees

Overall InPower total cost over 3 years = R172 631

Option B: Solar Companies offering Rent-to-Own finance

There are a number of companies you can choose from that offer a finance rent-to-own solar power solution. Each finance option has its own specific terms and conditions and pros and cons. We chose to look into the one that had the smallest monthly payment that we could find.

What you get!

5kW Deye inverter
5.5 kW Hubble Am2
8 x Tier1 Canadian Solar Panels 455W
Full installation (including Compliance Certificate)

What you Pay!

R1740 admin fee (once-off)
R1740 monthly instalments
There is an option to take complete ownership of your system after 3 years. To own the system an additional cost of R162 000 is required.

What does it mean for you?

Even though this is one of the most affordable monthly instalment fees in South Africa, there is a significant price to pay.
Firstly, as the consumer, you do not own the solar PV system, which means you do not benefit from any tax or other incentives, including selling your excess power back to the grid.
Being that the system is not owned by you, another big con is that the system adds no additional value to your property, which means you are unable to take advantage of the 4% capital gains that most solar installations add.

Your Total cost over 3 years = R226 380
(if you decide you want to take advantage of all the incentives and tax benefits)

Option C: Banks that Finance Solar via a third-party Solar Provider

Some banks collaborate with solar suppliers in an attempt to provide the best solar finance in south Africa and a comprehensive financing package. It’s difficult to get an exact cost for this because each individual will qualify for different rates depending on their credit score and relationship with their bank of choice.
That being said, we were able to gather enough information to put an aggregate or average cost for the everyday South African.

What you get!

5kW Deye inverter
8x 460W Solar Panel
MBB Half-Cell Module
Vision deep cycle AGM battery 12V 200AH

What you Pay!

R20 000 - Installation fees (including compliance certificate)
R18 800 - Materials and Mounting
R4 035.53 - Monthly Installments (working with prime interest rate)
*Interest rate determined by your credit score and other factors

What does it mean for you?

Key benefits include:
One-stop solution: Banks and suppliers streamline the financing and installation process.
Support and warranty: Suppliers often provide maintenance and warranty services.

However, it's essential to be aware of:

Interest rates and fees: Compare different offers to ensure competitive terms.
Supplier partnerships: The availability of brands and units you prefer may vary depending on the bank's partnerships with their third-party supplier.

Total cost over 3 years = R145 279.08


Option D: Finance via a Bank using your own installer

Banks offer solar loans tailored for their residential customers. Typically, the bank will provide its customers with a list of approved suppliers and installers to source a system from. The credit to source your system will be determined by your creditworthiness; however, typically, a bank will offer interest rates of 28.5% for 3-year periods; the interest rate drops significantly if you are willing to extend the loan period to 72 months (6 years).

What you get!

We decided to get an estimate for our 3kW solar kit
5kW Sunsynk Inverter
5.5 kW Hubble Am2
8 x Tier1 JA Solar Panels 455W
Full installation (including Compliance Certificate)

What you Pay!

No deposit
R6,584.85 monthly instalment
Includes interest rate of 28.25%
No hidden fees
T's & C's apply
*Interest rate determined by your credit score and other factors

What does it mean for you?

No deposit or upfront capital is required. You get ownership from the start; however, without the deposit, your monthly payments are the highest of the four finance models. Unfortunately, with the high-interest rate, your total system cost will be significant. The South African banking system, however, is flexible with its terms, and, over a longer payback period with an above-average credit score, you could potentially secure a better loan offer.

Overall total cost over 3 years = R237 054.60


Moving to Solar

The best solar installations with backup power offer a sustainable and reliable energy solution for homes and businesses, ensuring uninterrupted power supply while reducing reliance on the grid. Enjoy the benefits of Solar and Backup Power without the pressure of paying the full upfront cost. As accredited PV green card installers, we ensure your system will never be orphaned. Investing in solar power is a smart decision for your wallet and the environment.

What's the difference between 3kW PV system vs a 5kW PV system

You may have noticed that a 5kW inverter is used by both 3kW and 5kW solar systems. But why is it, and more significantly, why does it need a 5kW inverter while being labelled a 3kW Solar Kit?

There is a common misconception within the solar industry surrounding inverter size. Most people base the size of the total system on the size of the inverter, but in fact the size is determined by the quantity of power generated by the system. The 3kW solar kit is the perfect example of this misconception. Most 3kW PV installations use a 5kW inverter, a 5/5.5kVA battery and 6 - 8 x 455 - 540W solar panels.

Installing 6 x 540W panels would result in a solar output of 3.24 kWp (6 × 540W = 3240 W). This means that at full capacity, your solar PV system will generate little more than 3kW of power. Therefore the size of the system is loosely labelled as a 3kW solar kit.

Learn more about kWp and kWh

If this is the case, why do we use a 5kW inverter in our 3kW solar kit?

  1. The battery's backup power must be accommodated. A smaller inverter would necessitate the use of a smaller battery, reducing the 4 hours of backup power.
  2. Future expansion of the solar system needs to be accommodated. Because solar is expensive, it makes sense to gradually increase the capacity of the solar system.

The installation of 4 x 540W panels can boost overall energy output from 3.24 to 5.4 kWp.  Our solar panel experts are equipped to help you decide which inverter would work best for your home.