Businesses can install solar power systems without any upfront investment. Financing models such as Contracting, leasing, and KfW loans spread out the costs, ensure savings, and make the most of government incentives.
This post shows the common models, their pros/cons, typical conditions, and how companies choose the right financing.
Why photovoltaic financing makes sense
PV systems pay for themselves in 5–8 years, then generate 20+ years of free electricity. However, without financing, many projects fail due to the high upfront costs (€1,000–€1,500/kWp).
Advantages of Financing:
- No or low equity requirement
- Immediate electricity cost savings (20–40%)
- Utilize Funding (KfW, EEG, Regional Grants)
- Planable monthly installments
- Balance sheet optimization possible
The 4 main financing models
1. Contracting
With Contracting The project developer finances, plans, builds, and operates the PV system. The company buys solar power via PPA (Power Purchase Agreement).
Features:
- €0 Own investment
- Monthly electricity rate (fixed, 8–15 years)
- Maintenance/Operation by Partner
- Purchase option at the end of the contract
Advantages:
- Risk-free
- Immediate Savings
- Balance sheet approved
Disadvantages:
- Long-term commitment
- No ownership (except for purchase option)
Typical conditions: 12 ct/kWh (vs. 25–30 ct grid electricity)
2. Purchase with KfW loan
Company buys PV system via bank/KfW loan. full control and depreciation.
2026 Program:
- KfW 270: Renewable Energy Standard (up to 100% funding)
- KfW 293Municipal (Eligible for Subsidy)
- KfW 295: Energieeffizienz (bei Eigenverbrauch >50%)
Advantages:
- Property after payoff
- Tax depreciation
- Keep EEG remuneration
Disadvantages:
- Equity (10–20%)
- Interest rate risk
Typical conditions: 1.5–31% interest rate, 10–20-year term
3. Leasing / Tenancy agreement
PV system is rented or leased. Purchase option or return after term.
Features:
- Monthly fixed rate
- Maintenance mostly included
- More flexible terms (5–15 years)
Advantages:
- Low co-payment
- Balance sheet debt financing
- Flexibility
Disadvantages:
- Higher total costs
- Fewer tax advantages
4. Subsidized Loans & Grants
Combination of low-interest loans and direct grants.
Current Subsidies:
- KfW grants: Up to 30% for energy efficiency
- Regional ProgramsNorth Rhine-Westphalia, Bavaria, Baden-Württemberg
- Innovation tendersUp to €5 million for large plants
- EEG 2026Surcharge for direct marketers
Comparison of financing models
| Model | Equity | Rate/Month | Runtime | Property |
| Contracting | 0 Euros | Electricity price | 20 years or longer | No (Purchase Option) |
| KfW Purchase | 10-20 % | 1–3 % Interest | 10-20 years | Yes |
| Leasing | 0-10 % | Fixed Rate | 5-15 years | Option |
| Grant | 0-20 % | Cheap | Variable | Yes |
Which model is right for my business?
For the mid-sized (100-500 kWp)
RecommendationKfW 270 + Equity
JustificationProperty, depreciation, full control
For large companies (>1 MWp)
Recommendation: Contracting
JustificationEconomies of scale, no CAPEX, professional management
For property owners
RecommendationLeasing/Tenancy
JustificationValue appreciation, low risk
In case of uncertainty & a tight budget
Recommendation: Contracting
Justification: €0 startup costs, immediate savings
Avoid important contract pitfalls
Checklist for PV Contracts:
- Subordinate easement (Protect property value)
- Call option clearly regulated
- No off-take obligation (Quantities flexible)
- Maintenance/Operation unambiguously
- Business Interruption Insurance including
- Monitoring Available live
- Termination rights fair
Subsidies 2026 – Limited time
Act until:
- KfW 270/293: Budget 2026 Limited
- Regional Grants: First Come, First Served
- EEG surcharge: Guaranteed only until 2028
Professional funding advice increases success by 40%.
Frequently Asked Questions
What is the difference between Contracting and leasing?
Contracting = The partner handles everything (planning, construction, operation). Leasing = Renting the completed facility.
Do I need equity?
No. Contracting allows for 100% to be financed with debt.
What are the monthly installments?
Contracting: Electricity price (12–15 ct/kWh). KfW: 1–3% Interest rate.
Can I combine grants?
Yes, KfW loan + regional grants + EEG.
Who operates the facility?
Contracting: Partner. Purchase/Lease: Company or service provider.
PV systems & battery storage from a single source
CUBE CONCEPTS is also your PV financing partner:
- Analysis: Load profile, Economic viability, Subsidy maximization
- Model selection: Purchase/Contracting calculated individually
- Planning: Permits, Grid connection, Contracts
- Realization: Turnkey
- Complete operation including maintenance & monitoring