Solar credit to finance rooftop photovoltaic systems: Your guide for 2025
10 May 2025
12
Minutes
Katrin Straub
CEO at nextsure
Do you dream of independence from rising electricity prices with your own photovoltaic system? The high acquisition costs of up to €29,000 are often the biggest hurdle. A tailored solar loan makes the investment possible and profitable without large amounts of equity.
The topic in brief and concise terms
A solar loan allows the financing of a 10 kWp PV system (cost: €17,000-€29,000) often without equity.
The KfW loan 270 supports PV systems with up to 100 percent of the costs, and the application is made through the house bank.
A photovoltaic insurance is usually mandatory for financed systems and costs between 70 and 120 euros per year.
Cover investment costs of up to 29,000 euros with the right loan
A modern photovoltaic system with ten kilowatt-peak (kWp) capacity and electricity storage costs between 17,000 and 29,000 euros in 2025. A solar loan is designed to bridge this amount, often even as a one hundred percent financing option without equity. Banks like SWK Bank offer such loans with terms ranging from five to twenty years. The feed-in tariff often serves as security for the bank, enabling favourable conditions. A loan for a PV system with storage is therefore a common and secure path to energy self-sufficiency. However, the exact conditions depend on several factors that you should carefully examine.
Secure returns by examining crucial credit terms
A favourable interest rate alone does not make a good credit agreement. Ensure the possibility of making free special repayments of up to 50 percent of the remaining amount. Many banks waive the land register entry for a solar loan, saving you notary fees of several hundred euros. Our expert tip: Choose an interest rate lock-in of at least ten years to protect yourself from market fluctuations. Most providers also allow repayment-free start-up years, which preserves your liquidity during the initial phase. A modernisation loan without a land register entry offers similar benefits and can be an alternative. This flexibility is crucial to adapt the financing to government subsidy programmes.
Use state-backed KfW funding to reduce interest burden
The Kreditanstalt für Wiederaufbau (KfW) supports your project with the 'Renewable Energies – Standard 270' programme. This programme covers up to one hundred percent of the investment costs, including planning and installation of a battery storage system. The interest rates for the KfW Loan 270 currently range between approximately five and eleven percent, depending on creditworthiness and term. Applications are not made directly with the KfW, but always through your local bank, which acts as an intermediary. A list of eligible measures includes:
Purchase and installation of the photovoltaic system
Expansion of existing systems
Costs for planning and project management
Acquisition and retrofitting of battery storage systems
Financing of associated wall boxes for electric cars
An eco-loan with interest benefits can be a sensible addition or alternative to KfW funding. The combination of loan and funding is often the key to maximum cost-effectiveness, especially when further renovation measures are pending.
Creating synergies through combined renovation projects
Often, installing a PV system is the ideal time for roof renovation. Many homeowners choose to combine both projects to save costs, as for example, the scaffolding only needs to be erected once. Such a combined measure can often be financed with a single, larger loan. This not only simplifies management but can also lead to better overall terms. By combining, you increase the value of your property by up to 15 percent. If you plan for the long term, a building savings contract for future renovations can also be a strategic option. Once the system is financed and installed, securing the valuable technology becomes the focus.
Secure financed assets with targeted insurance coverage
There is no legal obligation for photovoltaic systems insurance, but it is required by most lending banks. Adequate coverage is essential to protect the investment of tens of thousands of euros. The cost for separate photovoltaic insurance is only about 70 to 120 euros per year. Alternatively, the system can be included in the existing home insurance, which increases the value of the house. Important covered risks include:
Damage from storm, hail, fire, and overvoltage
Short circuit, operating errors, and gross negligence
Animal bite damage (e.g., by martens) to cables
Theft of modules or other components
Loss of earnings for up to twelve months in the event of insured damage
A specialised photovoltaic all-risks insurance offers the most comprehensive protection. It secures your investment against virtually all contingencies and ensures that the financing is built on a solid foundation.
Request a personalised risk analysis now
A solar loan makes the energy transition on your own roof tangible for every homeowner. With the right combination of a bank loan, KfW funding, and appropriate insurance coverage, your photovoltaic system becomes a secure and profitable investment. Have your insurance situation checked for free and receive specific optimisation suggestions.
More useful links
The Federal Statistical Office (Destatis) offers comprehensive information on photovoltaics within the context of the environment and energy in Germany and Europe.
A press release from the Federal Statistical Office (Destatis) from the year 2024 provides current data and facts about photovoltaics in Germany.
The Fraunhofer Institute for Solar Energy Systems ISE compiles up-to-date facts on photovoltaics in Germany in a PDF document.
Statista offers a themed page with various statistics, data, and market information on photovoltaics.
Statista presents statistics on the share of photovoltaics in electricity generation in Germany.
Wikipedia provides an overview of the technology, development, and significance of photovoltaics in Germany.
The German Solar Industry Association (BSW) provides market data and information on the photovoltaics industry.
A 'Number of the Week' press release from the Federal Statistical Office (Destatis) from 2023 contains interesting facts and statistics about photovoltaics.
FAQ
What documents do I need to apply for a solar loan?
Generally, you will need a detailed quote from the installer, your personal income statements for the last three months, a copy of your ID card, and your tax ID. For the KfW loan, the application is completed together with your bank.
How quickly does a financed photovoltaic system pay off?
The payback period for a 10 kWp system with storage is approximately eleven to thirteen years. The exact duration depends on the total costs, the level of loan interest rates, the development of electricity prices, and your share of personal consumption.
Is insurance for the battery storage included in the solar loan?
The solar loan finances the storage but does not insure it. Insurance coverage for the storage must be arranged separately through a photovoltaic insurance policy or an add-on to the home insurance. Many tariffs already cover the storage or offer it as an option.
What happens when the feed-in tariff expires but the loan is not yet paid off?
The feed-in tariff is guaranteed for twenty years, while solar loans often have terms of ten to twenty years. Financing should be planned so that the loan is repaid before or by the time the tariff expires. After that, you will continue to benefit from the substantial savings of using your own generated electricity.
Can I also get a solar loan for a used photovoltaic system?
Most banks, and particularly the KfW, primarily support the purchase and installation of new systems. Financing for used systems is uncommon and often comes with stricter requirements or higher interest rates, as the remaining lifespan and warranties are more difficult to assess.
Can I get a solar loan even without a land registry entry?
Yes, most banks that offer special solar loans waive the need for an expensive land registry entry. Instead, the assignment of feed-in tariff claims or the system itself serves as security.
