Finance & savings
Cash, bond, bank loan or rent-to-own: what does solar really cost over seven years in South Africa?
Cash wins on total cost, a bond re-advance paid off in seven years comes second, and rent-to-own costs the most. On a R70 000 system, SolarGuide’s October 2026 worked example puts a bond re-advance at prime (10.75%) over seven years at about R99 900 repaid, a dedicated loan at prime + 3 at about R109 400, and a seven-year rent-to-own plan with 6.5% yearly escalation at about R155 900 including the buy-out. Stretch the same R70 000 over 20 bond years and it costs about R170 600.
Updated 27 October 2026 · Worked examples use published tariffs; not a formal quote, credit decision or financial advice.
Answer first: The route you pay for solar moves the total cost more than the panel brand does. The monthly saving on your electricity bill is the same whichever way you pay, so the cheapest route is the one with the smallest total outflow. Cash is cheapest, a short bond repayment is next, a personal loan follows, and rent-to-own and subscriptions cost the most — in exchange for no deposit and bundled service. Related: solar on a home loan · lease vs buy · subscription 10-year cost.
The rate everything starts from
The SARB repo rate is 7.25% and prime is 10.75%, both effective 25 September 2026 (Absa financial indices). Bond rates track prime closely; unsecured loans sit above it. Every finance route below moves when the Reserve Bank moves.
Seven-year total cost on a R70 000 system
SolarGuide’s worked example, published 21 October 2026, prices a R70 000 system across the main routes using published bank terms and prime at 10.75% (SolarGuide bank comparison (checked 21 Oct 2026)). We put cash in the same table:
| Route | Rate / escalation | Term | Monthly | Total paid |
|---|---|---|---|---|
| Cash | — | — | — | R70 000 |
| Bond re-advance, repaid in 7 years | 10.75% | 84 months | R1 189 | ≈R99 900 |
| Dedicated solar / personal loan | 13.75% (prime + 3) | 84 months | R1 302 | ≈R109 400 |
| Standard Bank Energy Loan at published ceiling | 17.25% (prime + 6.5) | 72 months | R1 636 incl. R69 fee | ≈R119 000 |
| Bond re-advance over 15 bond years | 10.75% | 180 months | R785 | ≈R141 200 |
| Bond re-advance over 20 bond years | 10.75% | 240 months | R711 | ≈R170 600 |
| Alumo rent-to-own (Watt-a-Deal) | 6.5% a year escalation | 84 months | R1 449 rising to ≈R2 114 | ≈R155 900 incl. initiation and buy-out |
The lowest monthly instalment — R711 over 20 years — is the most expensive route on the table. The cheapest borrowed route is the bond rate repaid fast. That needs bond equity and the discipline to pay the solar portion off early, but it saves roughly R70 000 compared with leaving it on a 20-year term.
What each bank publishes
- Standard Bank Energy Loan: R3 000 to R300 000, 12 to 72 months, a personalised rate up to prime + 6.5%, initiation fee up to R1 207.50, R69 a month service fee, no early-settlement penalty, minimum income R8 000 a month (Standard Bank Energy Loan page).
- FNB Solar Energy Loan: sits inside your FNB bond at your home-loan rate, minimum R50 000, capped at 15% of the property value; FNB pays the supplier in stages (FNB alternative energy solutions).
- Absa: solar funding up to R300 000 through a home-loan re-advance or further advance; a further advance starts at R50 000 and carries bond registration costs (Absa solar and energy finance).
- Nedbank: home-loan routes plus MFC asset finance up to 96 months through approved suppliers (SolarGuide bank comparison (checked 21 Oct 2026)).
Rent-to-own and subscriptions in 2026
Installer finance bundles hardware, installation, insurance and maintenance into a single debit order, and the debit order escalates every year.
| Provider | Model | Entry price | Escalation | Ownership |
|---|---|---|---|---|
| Versofy | Rent-to-own, 60 months | From R1 799/month (bill up to R2 000) | 5% a year | Yours after the term |
| Versofy | Subscription | Same tiers | Per contract | Never |
| GoSolr | Subscription | From R1 299/month + once-off admin fee | CPI each year | Purchase option after three years (per contract guide) |
| Alumo | Rent-to-own, 3–7 years | From R1 449/month (7 years) | 6.5% a year | After term and buy-out |
Sources: Versofy residential page; EnergyBee Versofy review (retrieved 9 Oct 2026); GoSolr product page; SolarGuide bank comparison (checked 21 Oct 2026). Versofy’s R1 799 entry plan escalating 5% a year adds up to about R119 300 over 60 months (R21 588 in year one rising to R26 240 in year five) — our arithmetic from the published price and escalation.
Net out the savings, not just the cost
Finance is half the sum. The other half is what the system saves. Take a household that self-consumes 300 kWh of solar a month at a top-block tariff near R4.00/kWh incl. VAT — inside the R3.30–R4.70 band most 2026/27 metro households pay (tariffs 2026). That is about R1 200 a month in year one, rising with each July increase.
- Cash buyer: pays R70 000 once and pockets the full R1 200 a month from day one. Payback lands just under five years at today’s tariff.
- Bond re-advance over 7 years: pays R1 189 a month against a R1 200 saving — roughly cash-neutral from month one, and the saving grows past the instalment as tariffs rise.
- Personal loan at prime + 3: R1 302 a month — about R100 a month out of pocket in year one, closing the gap after the first increase.
- Rent-to-own at 6.5% escalation: starts at R1 449 and climbs faster than most tariff increases, so the household pays more than it saves for most of the term and owns the kit at the end.
- Bond over 20 years: the lowest instalment, positive cash flow from day one, and the highest total — the battery reaches end of warranty long before the debt is gone.
The fixed-charge trap in subscription pricing
Subscriptions are sold against your bill: “for households spending R2 000+” or “up to R3 000”. Solar cuts the energy part of a bill, never the fixed part. In Cape Town the Home User service and wires charge is R424.30 a month incl. VAT whether you use 0 or 800 kWh (City of Cape Town cost-of-electricity page). A R1 799 subscription on a R2 000 bill therefore costs more than the entire energy portion it can offset. Compare the subscription price with the energy part of your bill only. More in sizing solar for a R3 000 bill and fixed charges with solar.
Who should choose which route
- Cash available, staying put: buy outright. Shop at least three quotes — how to read a solar quote.
- Bond with equity: re-advance and set a voluntary extra payment that clears the solar portion in five to seven years.
- No bond, solid income: compare a bank energy loan with installer finance on total cost, not monthly cost.
- Renting or moving within three years: a month-to-month subscription avoids a stranded asset — renting with solar.
- Pensioners and fixed incomes: cash or a short bond draw; avoid escalating debit orders — solar for pensioners.
Questions to put in writing before you sign
- Total payable over the full term, including escalation, fees, initiation and buy-out.
- Who owns the system each month, and what happens if you sell the house.
- Who insures it and who pays the excess on a hail or theft claim — solar insurance.
- Early settlement cost and cancellation or removal fees.
- Battery usable kWh and warranty in years and MWh, not only nameplate kWh — usable kWh.
Bottom line
Every route buys the same saving; only the total outflow changes. On a R70 000 system, cash costs R70 000, a seven-year bond repayment about R99 900, a personal loan R109 000–R119 000, rent-to-own around R119 000–R156 000, and a 20-year bond about R170 600. Pay cash if you can, borrow short if you cannot, and compare every offer on the total it costs and the saving it delivers.
General information, not financial advice. Rates and offers are as published on the dates shown; confirm your own offer in writing.
Quick questions
What is the cheapest way to pay for solar in South Africa?
Cash. Next best is a home-loan re-advance or further advance repaid within five to seven years at your bond rate. Unsecured loans and rent-to-own cost more in total.
Is it bad to put solar on a 20-year bond?
Only if you repay it over 20 years. R70 000 at 10.75% over 240 months costs about R170 600 in total. Pay the solar portion off in seven years and the total drops to about R99 900.
What does rent-to-own solar cost in 2026?
Published entry plans include Versofy rent-to-own from R1 799 a month over 60 months with a 5% annual increase, and an Alumo plan from R1 449 a month over seven years with 6.5% escalation. Always ask for the total over the full term.
Is a solar subscription better than rent-to-own?
A subscription such as GoSolr from R1 299 a month suits renters and people who want no maintenance; you never own the kit unless you exercise a buy-out option. Rent-to-own ends in ownership but escalates every year.