Homeowners
Solar for your home, financed
Compare every way to pay for the quote you already have. There is no government grant for a household — what there is, is a real difference between the structures, and it is worth more than the rebate everyone remembers.
Every route open to you.
The same questions answered for each one, including the ones that rule it out. Anything not listed here is missing because this kind of business structurally cannot use it.
Home loan add-on
The system added to your existing bond.
- Term
- The remaining bond term
- Rate
- Prime +1% or better — the cheapest money available to a household, because the property secures it
- Deposit
- None
- Ownership
- You, from day one
- Time to funding
- Weeks — it goes through your own bank
- Water as well as energy
- Yes — boreholes and treatment can be included
- Tax
- None. Section 12B needs a trade to deduct against, and a household does not have one
- Carbon / I-RECs
- Yours, though residential volumes rarely justify certification
- Who qualifies
- Homeowners with a bond and available equity
- Who it excludes
- Tenants, and owners without bond capacity
Worth knowing up front. The lowest instalment is not the lowest cost. Spread over twenty remaining bond years, a cheap rate can still total more interest than a five-year facility at a higher one.
Asset finance
A term loan against the plant. You own it, and you owe for it.
- Term
- 3 to 7 years
- Rate
- Prime +1% to +4%, set by covenant strength and term
- Deposit
- Nil to about 10%
- Ownership
- You, from day one
- Time to funding
- Days to weeks
- Water as well as energy
- Yes — boreholes, storage, filtration, treatment and reuse fund on the same facility
- Tax
- Section 12B: 100% of qualifying cost deducted in year one, up to 1MW. Water equipment is not a 12B asset and falls under ordinary capital allowances instead
- Carbon / I-RECs
- Yours. You own the plant, so the I-REC or carbon benefit is yours to keep or sell
- Who qualifies
- Any trading entity with the cash flow to service it and something to secure it against
- Who it excludes
- Entities with no balance sheet to lend against — bodies corporate and HOAs — and businesses with no taxable income, for whom the allowance is worth little
Worth knowing up front. Declined on security is not the same as declined on affordability. The first can be fixed with a guarantee; the second cannot.
Rental
You rent the plant. The funder owns it and maintains it.
- Term
- 3 to 7 years
- Rate
- Embedded in the rental — quoted as a rand figure, not a rate
- Deposit
- None
- Ownership
- The funder, for the whole term
- Time to funding
- Days to weeks
- Water as well as energy
- Yes, on the same basis as energy
- Tax
- No Section 12B — you do not own the asset. The rental is generally deductible as an operating expense instead
- Carbon / I-RECs
- Usually the funder, as owner. Worth asking for explicitly if it matters to you
- Who qualifies
- Businesses that cannot or do not want to carry the asset on the balance sheet, and anyone with no taxable income to point an allowance at
- Who it excludes
- Nothing structural — but it costs more in total than owning
Worth knowing up front. Maintenance sits with the funder for the term, which is worth real money on a remote site. Insurance does not — you arrange that yourself.
Rent-to-own
A rental that ends with the plant becoming yours.
- Term
- 3 to 7 years
- Rate
- Embedded in the instalment
- Deposit
- None
- Ownership
- The funder during the term, you after the buy-out
- Time to funding
- Days to weeks
- Water as well as energy
- Yes
- Tax
- No Section 12B during the term. The position changes at buy-out, when you become the owner of a depreciable asset
- Carbon / I-RECs
- The funder during the term, you after buy-out
- Who qualifies
- Anyone who wants ownership eventually but not the capital event now
- Who it excludes
- Nothing structural
Worth knowing up front. The buy-out is typically around 10%. At that moment maintenance becomes your problem and your tax position changes — model it before you get there.
Subscription
One all-in monthly fee covering the system and its upkeep.
- Term
- 5 years
- Rate
- Embedded in the fee
- Deposit
- None
- Ownership
- The provider
- Time to funding
- Days to weeks
- Water as well as energy
- Not currently
- Tax
- No Section 12B. A household has no trade to deduct against in any case
- Carbon / I-RECs
- The provider
- Who qualifies
- Residential only
- Who it excludes
- Commercial and industrial sites
Water finance / WPA
The same structures applied to water: buy the equipment, or buy the water it delivers.
- Term
- Up to 10 years
- Rate
- Embedded, or priced as ordinary asset finance if you are buying
- Deposit
- None on a Water Purchase Agreement
- Ownership
- You if financed, the funder under a Water Purchase Agreement
- Time to funding
- Days to weeks
- Water as well as energy
- This is the water route — boreholes, pumps, storage, reticulation, filtration, treatment, reverse osmosis, greywater and reuse
- Tax
- Not Section 12B. That is an energy allowance; water equipment falls under the ordinary capital allowance rules for plant and machinery
- Carbon / I-RECs
- Not applicable, though a reduced pumping load changes the energy side
- Who qualifies
- Any site where water supply or quality is a constraint — and it can be bundled with the generation that runs it
- Who it excludes
- It cannot be funded inside the Agro Energy Fund, which covers the energy asset only
There is no residential grant. Say it once, properly.
A lot of what still circulates online is out of date. The Section 6C solar rebate for individuals ended after the 2024 tax year and was not replaced. Section 12BA, the enhanced 125% deduction, expired on 28 February 2025.
Section 12B is still in force, but it is a business allowance: it needs a trade to deduct against, which a household does not have. Anyone telling a homeowner they will get a tax break on a home system is either confusing it with the business allowance or selling something.
If you run a business from home, or the property sits in a company or a trust that trades, that is a business application and the position changes completely.
What you can actually use
Five structures, and the gap between the cheapest and the most flexible is wide enough to be worth an afternoon.
- Home loan add-on — the lowest rate available to a household, because the bond secures it. Spreads over the remaining bond term, so the instalment is small and the total interest is not
- Asset finance — you own it from day one, at a flat monthly over three to seven years
- Rental — no deposit, and the funder maintains the system for the term. You arrange insurance
- Rent-to-own — monthly payments with a buy-out at the end, typically around 10%
- Subscription — one all-in monthly fee, five-year term, residential only
The question that actually decides it
Do you want to own the system, or do you want the electricity? Ownership is cheaper over twenty years and puts maintenance, insurance and eventual replacement on you. A rental costs more in total and puts all three on somebody else.
A household planning to move within five years is usually better off not owning. A bond add-on is the exception — it stays with the property and generally lifts what the property is worth.
Water, while you are at it
Boreholes, storage, filtration and treatment finance on the same terms as the energy that runs them, and on the same agreement if you want. On a property with unreliable municipal supply it is often the more valuable half of the project.
Good questions.
Is there a government grant or rebate for home solar?
No. The Section 6C rebate for individuals ended after the 2024 tax year and was not replaced. Section 12B is a business allowance and needs a trade to deduct against, which a household does not have.
Which structure has the lowest monthly cost?
Almost always the home loan add-on, because the bond secures it and the term is long. Watch the total interest rather than the instalment — a long term at a low rate can still cost more overall than a short one at a higher rate.
What if I sell the house?
It depends entirely on the structure, so settle it before you sign. A bond add-on stays with the property. A rental or subscription has to be either settled or ceded to the buyer, and the buyer has to qualify.
Do I need a deposit?
Not for a rental, a subscription or a bond add-on. Asset finance runs from nil to about 10% depending on the lender and your profile.
Two minutes, free, and non-binding. Every answer carries a route, including the ones that rule a programme out.
Before you rely on any of this
ArkFlow is not accredited by, empanelled with, or appointed as an agent of Land Bank, the IDC, DALRRD, the Department of Tourism, SEDFA or the NEF. Government and DFI programmes are applied for by you. We help you prepare and submit; you remain the applicant.
ArkFlow is not a financial services provider and does not give financial advice, and is not a registered tax practitioner. Nothing on this page is a quote, an offer of finance, an approval, or a recommendation to enter into any credit agreement.
Programme terms, grant availability and application windows change without notice. Figures shown are indicative and depend on the administering institution’s own assessment and on funds available at the time. Where a programme runs in windows we will not describe it as open unless a current window is confirmed.