Financing for solar energy is one of the main gateways for those who want to adopt photovoltaic technology in Brazil.
This is because, although the cost of equipment has fallen in recent years, the initial investment can still be a challenge for many families, businesses and rural producers.
In this context, financing emerges as a strategic resource: instead of committing all capital at once, the consumer pays for the system in installments while also reaping discounts on energy tariffs through self-generation.
In practice, the savings on the energy bill cover part (and in some cases even all) of the financing installment.
This model offers good financial viability and serves as a smart investment: at the end of the contract, the system continues to provide savings on your energy bill, maintaining the profitability of your investment.
That's why many banks, credit unions, and fintechs offer exclusive lines of credit for the sector, with differentiated conditions compared to other types of credit.
In this article, you will understand how solar energy financing works, what the most common types are, what their advantages and precautions are, as well as how Canal Solar can help you make the best decision. Let's go!
What is solar energy financing?
Solar energy financing is a line of credit created specifically for those who want to invest in a photovoltaic system without having to pay the entire amount upfront.
Unlike a personal loan or generic financing, it is geared toward clean energy generation projects, which means banks and credit unions offer special conditions, with lower interest rates and longer terms.
Furthermore, this is a credit considered self-sustaining, as the monthly savings on the electricity bill can be used to pay the financing installment amount.
Thus, over the course of the contract, the system “pays for itself” while the customer enjoys the benefits of solar energy.
How does solar energy financing work?
The process works in clear steps:
- Photovoltaic system budget: the consumer requests a project from an integrating company, which details equipment, labor and installation costs;
- Credit analysis: the bank or cooperative evaluates the applicant's profile, as with any other financing;
- Credit release: after approval, the amount is transferred directly to the company providing the system;
- Installation of the solar system: the customer follows the implementation and then starts generating their own energy;
- Payment of installments: installments are now paid monthly, often at the same amount or even lower than the old electricity bill.
This model creates a balanced financial flow: the consumer stops spending on the electricity bill and directs this amount towards paying off the mortgage, building an asset that increases the value of the property and generates savings in the long term.
What are the main differences between financing options?
The differences focus on four main points:
- Interest rates: vary depending on the type, customer profile, and institution. Green lines and secured financing usually have lower rates, while traditional CDC can be slightly higher;
- Payment terms: CDC generally offers terms of up to 5 to 7 years, while secured financing can reach 10 or even 15 years;
- Guarantee requirement: some modalities do not require a real guarantee (CDC), facilitating contracting, while others require assets such as real estate or a vehicle to reduce the bank's risk;
- Flexibility of use: some lines of credit finance only equipment and installation, while others allow for the inclusion of additional services, such as specialized labor or even system monitoring kits.
The choice of modality depends on the client’s profile.
Those seeking speed and simplicity can opt for CDC; those seeking lower rates and longer terms can consider guaranteed lines; and businesses and rural producers can take advantage of sector-specific green lines.
Are the rates lower than other types of credit?
Generally speaking, yes. Solar energy financing typically offers more competitive interest rates than personal loans, overdrafts, or even consumer goods financing.
This is because it is a strategic sector for the country, linked to sustainability and the energy transition, and many banks see these contracts as having a lower risk of default, as the savings generated by the system help balance installment payments.
Furthermore, incentive programs and green lines offered by public and private banks often offer interest rates below the market average, with special conditions such as extended terms, initial grace periods, and exemption from certain fees. However, it's worth noting that costs vary depending on:
- customer credit profile;
- chosen financial institution;
- total financing amount;
- required guarantees (if any).
In other words, although the rates are attractive compared to other types of credit, comparing proposals from different banks is essential to ensure the best value for money.
Advantages of financing for solar energy
Opting for financing offers a number of benefits, especially for those who don't want to commit all their capital at once. The main ones include:
- Immediate savings: the reduction in the electricity bill occurs as soon as the system is operational, where the savings generated can be used to offset the financing installment.
- Flexible terms: some credit lines allow long terms, which allow the investment to be diluted throughout the operation of the photovoltaic system;
- Accessibility: enables families, companies and rural producers to access technology, even without high initial purchasing power;
- Property value appreciation: properties equipped with solar energy gain market value;
- Financial return: at the end of the contract, the customer continues to benefit from the discount on their energy bill, ensuring profitability throughout the system's useful life.
Disadvantages and precautions before hiring
Despite the advantages, it is important to note some points before signing the contract:
- Financial commitment: if the installment is not well planned, it can weigh on the family or business budget;
- Limited coverage: most financing only covers the purchase and installation of the system, not including future maintenance or parts replacement costs;
- Credit requirements: customers with credit restrictions may encounter barriers to approval;
- Comparing proposals: each institution sets different rates, terms, and collateral requirements. Therefore, analyzing more than one option is essential;
- Contract term: In some cases, long terms can result in significant interest payments.
In simple terms, financing is advantageous, but it must be contracted with financial planning and careful analysis of the conditions offered.
Canal Solar and financing for solar energy
O Canal Solar closely monitors the evolution of the photovoltaic energy market in Brazil and understands that access to affordable financing is one of the drivers of the sector's expansion.
The news portal offers technical analyses and educational content that help consumers and professionals understand the best line of credit for their project.
Whether for an installer who wants to guide their client, for a businessman interested in reducing costs or for the end consumer who dreams of having clean energy at home, the Canal Solar serves as a reliable source of information and training, helping with financial and strategic decision-making.
Conclusion
Financing for solar energy is not just a payment alternative: it is a mechanism that democratizes access to photovoltaic technology, allowing thousands of families and businesses to generate their own energy.
When combined with quality information and financial planning, it becomes a safe path for those looking to reduce energy bills and increase property value.
The secret is to choose the best line of credit according to the characteristics and requirements demanded by the financial institution, analyze the budget and, above all, seek reliable information, something that Canal Solar is dedicated to offering daily.
