Solar financing: compare a loan with a lease or PPA
In this guide
Compare the contract, not the financing label
If owning the asset and controlling it after the contract matters, compare cash or a loan. If preserving working capital or shifting some service duties matters more, assess a lease/PPA against the provider’s actual terms. Lower upfront cash can bring a different energy rate, contract term and exit right; no label guarantees the cheaper choice. Named-provider terms are individual offers, not market standards.
Use the same site, load and period. Request cash price/financed amount and all payments; add utility bills, service, replacements and exit costs borne by each party. State who receives export credits for each option, and count only credits confirmed for that account. For a PPA, request the energy rate, escalation, minimum purchase, final ownership, included service and utility charges that remain. If roof space is committed, ask what areas and later uses are restricted, and who removes equipment and restores the roof at expiry.
Have the actual documents reviewed by appropriate finance and legal advisers. Do not compare only monthly payments: align contract duration and end-of-term asset condition. Tax treatment and financing eligibility depend on the customer and current rules and are not determined here.
Test two things separately: whether an upfront cash payment would use reserves you need, and whether the recurring payment remains affordable alongside the utility bill that still applies. Compare financing cost with the value of keeping cash available, without assuming either route is automatically cheaper. Treat projected electricity savings as a scenario to compare, not guaranteed income or proof that an instalment is affordable.
If an installer offers card instalments
Treat a card plan as a separate payment route unless the documents say otherwise. Ask the card issuer and installer to confirm the merchant, eligible card, tenure, rate or fees, cash price, total payable, credit-limit use, instalment schedule, and late-payment or early-settlement consequences in writing. The buyer’s eligibility and current offer must be confirmed directly. Compare that total with loan, lease, or PPA offers for the same system scope and site assumptions; an instalment plan alone does not establish asset ownership, installation quality, or workmanship warranty.
If a borrower dies during repayment, do not infer the outcome from the panel type or the word “instalment.” Responsibility depends on the facility, contract, co-borrower or guarantor, and protection actually purchased. Ask the lender how the balance is handled and ask the insurer to distinguish system-damage cover from borrower-life or debt cover.
If you plan to use EPF savings
KWSP’s official housing-withdrawal options describe schemes for buying or building a home and for housing loans; that page does not state that buying a solar PV system is an eligible withdrawal purpose. That is not a decision that your application will be refused or approved. Before putting EPF savings into your budget, ask KWSP in writing whether your exact purpose and documents fit a current category. Ask the bank or provider to confirm who must receive payment, which documents are required and when funds could be used. Until confirmed, compare offers using funds you know are available.
Dated bank examples: an illustration and instalment fees
Two dated bank records enter as bounded examples — not a market standard and not a binding quote.
| Bank record | What it states | Use limit |
|---|---|---|
| Maybank Solar Financing-i Product Disclosure Sheet (document revision code Solar Financing-i/PDS/ENG/122025) | Labelled illustration: financing tenure 10 years; profit rate SBR + 2.70%; effective profit rate (EPR) 5.45% [source]. | The bank's illustration for that product, not a binding quote; re-confirm current rates, eligibility and the full fee model directly with the bank before deciding. |
| OCBC solar financing Easy Payment Plan terms (T&C, read 2026-09-30) | One Time Handling Fee: 4% of the Approved Amount for a 5-month tenure, 6% for 10 months, 7% for 20 months; minimum purchase RM500; the fee is billed in the first month after approval [source]. | The document carries no issue/effective date; the fee may be revised at OCBC's discretion per its own wording. Enter this one-time fee into the "rate/fees" row of the comparison table. |
Treat these as starting points only in the side-by-side sheet: a 10-year total on the Maybank illustration must be recalculated at the bank’s current rate, and on an OCBC EPP route add the one-time handling fee to the cash price before comparing with a loan, lease or PPA on the same system scope.
If you may sell the home or move the system
A bounded example, not a market rule: the Solar PV System Purchase Terms version Nov 2025_3 linked from Emit (the terms refer to Time) describe a residential site used solely for the customer’s own stay, not commercial, rental, industrial or business use. These are terms for one purchase document, not a general rule for loans, leases or PPAs. Check whether this exact version is part of your Proposal and Service Order before relying on it [source].
| Issue | What the Nov 2025_3 document states | Ask for in writing before deciding |
|---|---|---|
| Selling the home and assigning warranties | If the customer intends to assign the provider’s warranties to the new site owner, the document calls for at least one month’s written notice before the intended sale and assignment; the customer is responsible for arranging the warranty assignment [source]. | Ask the provider to confirm the warranty-assignment steps for your Service Order. |
| Assigning the contract | A separate clause requires Time’s prior written consent to assign contract rights or obligations. Warranty notice is not approval to transfer the agreement [source]. | Ask whether consent is needed, who applies, and how the agreement and payments would be handled. |
| Moving the system to another address | The document calls for written agreement at least 45 working days ahead, relevant authority approvals and a new-site assessment. The destination must be in the provider’s service area; the customer must pay Extra Charges for dismantling, reinstating the old site and reinstalling the system. Relocation damage is excluded from the document’s warranties, and a move not done by Time voids those warranties [source]. | Ask about feasibility, required approvals, itemized charges and warranty impact for the exact address before arranging work. The document gives no fixed relocation price. |
| Termination after installation has begun | For the specific termination branches in clauses 13.5.1–13.5.2, the document says all Balance Charges are payable, including the full system purchase price. Its definition includes the price in the Proposal/Service Order plus outstanding or to-be-billed charges [source]. | Ask for an itemized statement tied to the clause, work stage, payments already made and outstanding charges. This document does not calculate your settlement amount. |
This summarizes one version of purchase terms; it does not determine whether they apply to your circumstances or are enforceable. Do not assume they cover every Emit customer or a lease/PPA offer. Compare the signed terms, Proposal and Service Order for your own system. If a sale or move is possible, ask the provider the questions above and obtain appropriate professional review.
Build a side-by-side cost sheet
Use the same property, bill period, equipment scope and generation assumptions for each proposal. Record the cash price, any deposit, amount financed, every stated rate and fee, each payment and its duration, and the total paid by the end of the comparison period. Keep ongoing electricity charges, service costs, insurance and any required maintenance in separate rows. For a PPA, include the contracted energy price and adjustments, minimum purchase, remaining utility bill, and any end-of-term or early-exit amount.
Mark missing terms “not stated” and ask for them in writing; do not fill gaps with an advertised monthly payment or a provider’s savings estimate. If the property may be sold or the borrower may die before the contract ends, ask the provider and lender how transfer, outstanding balances, co-borrowers or guarantors, and insurance are handled. Compare totals only when the time period and included responsibilities match.
Betulkex worksheet for comparing financing offers
Fill this table from written offers. A blank field means the term has not been supplied; it does not mean free or no obligation.
| Offer input | Cash purchase | Card instalments or loan | Lease or PPA |
|---|---|---|---|
| System compared | Copy equipment and installation scope | Use the same scope | Identify scope and system owner |
| Payments and total | Equipment, installation and delivery price | Deposit, instalments, rate/fees and total over the term | Rent or energy rate, adjustments and total over the same period |
| Export rights and credit recipient | State account holder and confirmed credits | Confirm recipient; record only credits approved for the account | Check the contract for recipient and whether credits reduce the bill |
| If considering EPF | Confirm purpose, documents and release timing with KWSP; do not assume the balance is available | Confirm current category, payee, documents and timing with KWSP and the bank | Do not assume a withdrawal can pay instalments or rent; confirm the exact use in writing |
| Ongoing costs | Utility bill, service, insurance and maintenance | Keep these separate from repayments | Record who pays each cost and the remaining utility bill |
| End of term or early exit | Warranty and transfer terms | Balance-settlement and transfer formula | Termination formula, final ownership and roof obligations |
| Missing documents | Mark “not stated” | Ask the provider to confirm in writing | Ask the provider to confirm in writing |
For a home quote, use the residential quote guide. For business premises, use the commercial ROI worksheet to include the site’s tariff and load in the comparison.
Frequently asked questions
If I lease roof space for solar, can I add my own panels later?
Do not assume yes or no from the financing label or another buyer's experience. Ask the provider to mark the committed roof area, state any exclusivity or limits on later panels and expansion, explain maintenance access, and document equipment removal and roof restoration at expiry or termination. Resolve any missing term in writing before signing.
If solar instalments are paid by card, is that a solar loan?
Do not infer the product from the word instalment. Ask the card issuer and installer to name the exact payment route and participating merchant, current card eligibility, rate and fees, total payable, credit-limit use, and late-payment or early-settlement terms. Check the installation contract separately for system ownership and workmanship warranties.
If a borrower dies before the instalments end, must the family pay the balance?
There is no universal answer without the facility, contract, any co-borrower or guarantor, and the protection actually purchased. Ask the lender and insurer in writing who remains responsible and whether cover protects the borrower's life/debt or only panel damage. Do not assume the family must pay or that the balance is cancelled.
Can I use EPF savings to pay for a solar system?
KWSP's official housing-withdrawal options describe schemes for buying or building a home and for housing loans; that page does not state that buying a solar PV system is an eligible withdrawal purpose. This does not decide whether your specific application is eligible or ineligible. Ask KWSP in writing whether your exact purchase and documents fit a current category, and ask the bank/provider about the payee, required documents and release timing. Do not count the funds as available until confirmed.
Can I choose my own installer for a Maybank solar facility?
This guide does not verify whether Maybank currently uses an approved solar-partner list or allows applicants to nominate another installer. Before paying a deposit, ask Maybank to confirm in writing whether your preferred installer's exact legal entity, project and proposed payment route qualify, whether you can choose another provider, and who receives or releases the financing. Ask the installer separately for the cash price, equipment, work, warranty and any scope changes. A partner listing or seller statement is not financing approval or a site quote.
What if I dispute a solar installation paid through a card plan?
Do not assume an installation complaint pauses card instalments. Before using an OCBC plan, read its current solar-financing terms and ask OCBC in writing how scheduled instalments and its card-dispute process apply if the purchase or installation is disputed. Keep the card agreement and installer contract separate; this guide does not determine liability or whether a payment may be withheld.
Can a home mortgage include the cost of solar?
This guide does not verify Public Bank's or any lender's mortgage terms. Do not assume a system cost can be added to the home price or paid from housing finance. Before relying on that route, ask the lender, seller/developer and solar provider to confirm in writing whether the property contract and facility permit it, who receives funds, required documents, release timing and total financed amount. If unconfirmed, compare cash purchase and separate solar financing using funds that are actually available.