Solar Energy Financing

Published in 12/03/2025

If you've made it this far, you've probably already caught yourself thinking:
"Solar energy is really worth it... but how do I pay for it?"

And relax — you're not alone.

The truth is that 66% of residential installations in Brazil today are done through financing, not cash payments. This happens for a very simple reason:

It's cheaper to finance a solar system than to continue paying high electricity bills for years.

But hold on: just because "everyone does it" doesn't mean we should accept the first offer that comes along. Financing is serious business; it involves interest, terms, credit analysis... so let's understand how it works, what the best options are, what rates are common, and how to avoid pitfalls.

Sit down, grab a coffee, and let's demystify this issue once and for all.

What is solar energy financing?

Solar energy financing is nothing more than:
A loan specifically designed to purchase and install a photovoltaic system.

But it's different from a regular loan because:

• It usually has lower interest rates.

• longer term.

• lighter monthly payment.

• And often, the installment payment replaces the electricity bill.

This is because banks view solar energy as a safe investment, since it reduces expenses and increases the value of the property.

In other words, it's literally a loan that pays for itself.

How does financing work in practice?

The process is simpler than it seems:

1. You receive the quote from the solar energy company.

With all the details: equipment, inverter, power, labor, and final price.

2. Choose the bank and the type of financing.

It could be a big bank, a fintech company, a cooperative, a digital bank… I'll show you the list in a moment.

3. The bank performs the credit analysis.

This is usually a quick process (1 to 3 business days).

4. The credit is released and the installer begins the work.

In some banks, the money goes directly to the installation company.

5. You pay monthly installments.

While the system generates energy and reduces your electricity bill.

6. After paying off the loan, the energy remains yours — and 100% free.

Simple, right?
The secret is understanding which options are best and which one fits your profile.

Types of financing for solar energy

There are three main formats. Here's a straightforward summary:

✔️ 1. Targeted financing (specific solar financing) — the most common

Banks create exclusive credit lines for solar energy.
Advantages:

• lower interest

• quick approval

• long terms (up to 7–8 years)

• more predictable installments.

Ideal for homes and small businesses.

✔️ 2. Secured loan (home equity loan)

Use the property as collateral.
Advantages:

• much lower interest rates

• very long terms (up to 20 years)

• low installments

Disadvantage:

• Requires a fully paid-off property.

If you want to install a large system (farms, businesses, shops), this could be excellent.

✔️ 3. Credit Unions

Sicredi, Sicoob, Cresol etc.
Advantages:

• competitive interest

• close relationship

• flexible analysis

For those who are already part of a cooperative, it is usually the best option.

Which banks finance solar energy?

Here is the updated list of the main banks and institutions that offer photovoltaic financing in Brazil:

Traditional banks

• Banco do Brasil

• Caixa Econômica Federal

• Santander

• Bradesco

• Itaú

• Banrisul

• Banco BV (muito popular para solar)

Cooperatives

• Sicoob

• Sicredi

• Cresol

• Unicred

Fintechs and digital banks

• MeuFinanciamentoSolar (BV)

• Ecori CredSolar

• Solfácil (super popular)

• Valora

• Proesc

• Santander CDC Sustentável

Each has specific advantages, but the most important thing is to understand the fees, deadlines, and requirements.

Interest rates on solar financing: what is normal?

Let's be honest:
There is no "magic" rate, because it changes according to:

• bank

• term

• customer score

• system type

• warranty involved

But it can give you a very realistic view of the market.

Common rates in Brazil today:

• from 0.79% to 1.99% per month — specific solar power lines

• from 0.60% to 1.30% per month — via cooperatives

• from 0.50% to 1.00% per month — with real estate guarantee

Zero interest rates don't exist — someone is paying the bill.
Generally, "zero interest" hides:

• inflated price of the kit

• built-in fees

• Exorbitant labor costs

So it's best to stay alert.

Real-life examples of values ​​and installments.

Let's suppose someone wants to install a system of:

• 6 kWp (standard residential)

• Average price: R$ 22,000

Realistic example:

• Financing: R$ 22,000

• Duration: 72 months (6 years)

• Rate: 1% per month

Approximate installment: R$ 430 to R$ 480 per month

And how much did that house pay before electricity?

• Bills between R$350 and R$600 are common.

in other words:
The person exchanges an electricity bill for an installment payment.
And when the funding runs out… the energy continues to be practically free for the next 20 years.

Is it better to pay in cash or to finance?

Here's the honest answer:

Paying in cash is more financially advantageous.

For obvious reasons: you don't pay interest.

But financing is more worthwhile for 80% of people.

Why:

• avoid spending reserves

• installment replaces the electricity bill

• The system generates savings from the first month

• After the debt is paid off, energy remains cheap for decades

Funding is not the villain — it's a tool.

Tips for choosing the best financing (without headaches)

Here are some straightforward tips, no fluff:

1. Compare at least 3 institutions.

Rates change frequently.
One bank might give you 1.7% per month… another 0.95%.

2. Look at the Total Effective Cost (TEC).

Don't focus solely on the "monthly interest rate".
CET reveals:

• IOF

• tariffs

• mandatory insurance (if any)

• administrative fees

He's the one who shows the real cost.

3. Avoid unnecessarily long payment plans.

Longer payment terms may result in smaller monthly payments, but they increase the total cost.

The ideal?
between 48 and 72 months.

4. Do not accept financing that is "bundled" with the installation company.

The best installers give you the freedom to choose.

5. Always demand a detailed quote.

With everything separated:

• modules

• inverter

• structure

• labor

• monitoring

• guarantee

Transparency is everything.

When is solar financing really worth it?

Do you want a straightforward answer?

It's definitely worth it if:

• Your electricity bill is greater than R$300

• you have a good roof

• intends to live in the property for the next few years

• wants to reduce dependence on distributors

• doesn't want to or can't pay cash

It's not worth it if:

• Your electricity bill is very low.

• The property will be sold in a short time.

• there is no adequate space

• You are already in debt in other areas.

Just like that.

Is financing sustainable?

Yes! In fact, banks lower interest rates precisely for that reason.

Financing solar energy:

• reduces emissions

• protects the electrical system

• reduces network overload

• encourages clean energy

• It generates savings for the consumer

This is a rare case where economy and sustainability go hand in hand.

Documents needed for financing

It depends on the institution, but they usually ask for:

• RG and CPF

• Proof of income

• Proof of address

• Installation company's quote

• Photos of the place

• Preliminary design (sometimes)

Very peaceful.

The secret: how to pay less on financing

Check out these strategies:

1. Pay an entrance fee (even if it's small).

R$2,000 or R$3,000 already significantly reduces the final cost.

2. Use part of your 13th-month salary, FGTS (Brazilian severance fund), or income tax refund.

Any prepayment reduces future interest.

3. Do not accept a "technical visit fee" to close financing.

A reputable installer doesn't charge that much.

4. If you have a business account or a micro-entrepreneur account, check out the business lines of credit.

They generally have lower rates.

5. Prioritize banks and fintechs that specialize in solar.

They analyze faster and have competitive interest rates.

Conclusion: Is it worth financing solar energy?

If you want a final two-line summary:

Yes, it's worth it — very much so.
In most cases, financing solar energy means exchanging an ever-increasing expense (electricity bill) for a payment that disappears.

After the loan is paid off, you continue to reap the benefits of cheap, clean, and sustainable energy for over 20 years.

Solar energy is one of the few investments where:

• you save

• improves the property

• reduces environmental impact

• increases energy independence

• And you can still get financing with affordable terms

It's hard to find something so advantageous.

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