HYBRID / BUY NOW PAY LATER (BNPL) OPTIONS
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WHAT IS IT?
The financing company typically charges the installer a fee, which may be passed on to you as a higher system price. Always compare the total cost of a BNPL-financed system against a cash or green loan quote to understand the true cost. Another way the financing company generates income is through fees and charges (establishment fees, monthly account fees, payment processing fees, late payment fees) which can add to your total cost.**
Who Would It Suit?
BNPL products are now widely available and used by a broad range of consumers, not just those with limited access to traditional credit. They suit businesses or homeowners who want a simple, fast approval process with no upfront cost. Brighte is the most popular finance provider among Australian solar installers, nominated by over 40% of installers as their preferred lender.* & **
What Are the Benefits?
You can get a solar system with a small, or sometimes no, up-front cost and immediately start getting cheaper electricity.
You can claim interest, depreciation, and running costs as a normal business tax deduction.**
You can claim the GST paid on the purchase price in your next BAS statement and often receive a significant refund.
If the purchase is under the write-off threshold you may be able to write off the whole cost over the first year.**
Fast approval process, often with a simple online application.
BNPL providers are now regulated under credit law (from June 2025), providing consumer protections equivalent to traditional credit products.
Traps for the Unwary
Make sure you know what products you are being offered and their specifications so that you can make real comparisons. Not all solar systems are the same.
Make sure you know all of the fees and charges that will apply - pay special attention to late fees and to what happens if you can’t make the repayments.**
BNPL plans typically offer shorter terms than green loans, which means your monthly repayments may be more than the savings you make on your energy bill.**
Interest may be free for a certain period, but then start to accrue, often at a high rate, after the interest free period.**
Generally, you will not be able to make additional payments, or pay out the facility early. Even if you can, you will likely incur additional fees and charges.**
Make sure you know who you are dealing with - remember the installer is generally not the finance provider and once the system is installed, that is who you will be dealing with. Check both the installer’s and the financier’s credentials carefully.**
Always compare the total cost of a BNPL-financed system (including any fees) against a cash purchase or green loan quote for the same system.**
*Disclaimer 1: ZEN Inc. does not provide recommendations about the suitability or effectiveness of any product or service, nor does it endorse any provider mentioned.
Publishing of information is done as a public service to raise awareness. If a product or service is of interest to you as a solution, you need to conduct your own due diligence as to whether that product/service is right for you prior to making any investment or commitment.
ZEN Inc. is not liable for any losses incurred in any way through your use of the information provided nor for the actions of any product/service provider you engage as a result of the information received from ZEN Inc.
**Disclaimer 2: This is not financial advice. You should consider seeking independent legal, financial, taxation or other advice to check how this information relates to your unique circumstances. ZEN is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this factsheet.