How Solar EPCs Win More Deals by Offering Finance

Most solar quotes do not die because the system is wrong. They die because the client cannot, or will not, part with a large lump sum. A R450,000 commercial installation looks very different when it is framed as a monthly payment against the energy it saves. That is the gap finance closes, and it is the single biggest lever an installer has to lift conversion.

This post is for EPCs and installers who already quote well but want to win more of the deals sitting in their pipeline.

Why do solar deals stall at the quote stage?

A solar deal usually stalls for one reason: the client is being asked to fund the whole system from cash or an overdraft. Even a business with healthy turnover often does not want capital tied up in a roof when it could be funding stock, staff or growth.

When you only offer a cash price, you are competing on number alone. The client compares your total against the next installer's total and against doing nothing. Finance changes the question from "can I afford R450,000" to "is the monthly payment lower than what I pay Eskom or my municipality today". For most viable sites, the answer is yes.

How does offering finance change the conversation?

Offering finance shifts the conversation from cost to outcome. Instead of defending a price, you are showing a client how the system pays for itself over its life.

A few things change immediately:

• The decision moves from the bank balance to the cash-flow statement.
• Bigger, better-specified systems become viable because the client is not capping the deal at whatever cash they have on hand.
• You stop discounting to win, because the objection was never really the price.

If you want the full picture of how a deal moves from quote to funded, read how solar finance origination works.

What finance structures can installers offer?

Installers can offer several structures, and the right one depends on whether the client wants to own the asset, keep it off balance sheet, or simply buy the energy.

The main options are:

• Asset Finance (3 to 7 years). The client owns the system and can claim the Section 12B tax deduction. Good for businesses that want the asset and the tax benefit.
• Rent-to-Own (5 to 15 years). Lower monthly payments over a longer term, with ownership at the end.
• PPA (10 to 20 years). The client buys only the energy produced, with no capex and no ownership during the term.

There is also Solar-as-a-Service and evergreen rentals for clients who never want to own the hardware. For a side-by-side view of the two most common choices, see PPA vs Rent-to-Own.

Do I need my own lenders to offer finance?

No. You do not need a panel of banks or a credit licence to offer finance to your clients.

Through an origination platform, every deal can be routed three ways:

• The client's own bank, where an existing relationship may speed things up.
• Your own lenders, if you already have them.
• The ArkFlow lender network, which packages the deal to multiple funders at once.

Major banks that can sit behind a deal include FNB, Absa, Standard Bank, Nedbank, Investec and Capitec. You do not pick the winner. The client receives offers and chooses. To understand how funders assess a deal before they say yes, read what banks look for.

How much does it cost the installer to offer finance?

The sales side costs you nothing: leads, proposals, the client finance application and lender submission are free, with no card required and no per-deal listing fee. Additional seats and the Engineering Studio are paid.

The platform adds 1% of capex to the bill of quantities, and only where a deal funds through its lender panel. You add that 1% to your bill of quantities or quote, so it is carried in the deal, not taken out of your margin. The fee is billed in milestones as the bank releases funds, for example 80/20 or 60/30/10, and invoiced pro-rata. We break this down fully in the 1% success fee explained.

What does the deal flow look like in practice?

In practice, you stay in control of the client relationship from first quote to handover. The finance runs alongside your normal process.

A typical flow looks like this:

1. You propose and the client accepts an indicative proposal.
2. The platform onboards you with the relevant lenders.
3. The client completes a guided, step-by-step finance application.
4. The deal is prequalified and KYC-checked, then packaged for the bank.
5. Offers come in, the client selects one, the contract is drafted and the first milestone payment is released.

The proposal stage is where most clients decide whether to proceed, so it pays to know what goes into it. See what is inside an indicative proposal.

Ready to attach finance to your next quote?

You can start adding a finance option to your quotes today, at no cost. Sign up free and route your next deal to lenders through one application.

All indicative figures shown to clients are indicative only and not a credit offer. The lender does the formal underwriting.

Frequently asked questions

Does offering finance hurt my margin?

No. The 1% success fee is added to your bill of quantities and carried in the deal, so your installation margin is unaffected. You only ever pay it on deals that actually fund.

Can I still offer a cash price as well?

Yes. Finance sits alongside your cash quote. Many installers present both so the client can compare an upfront price against a monthly payment and choose what suits them.

Which clients are a good fit for solar finance?

Commercial and residential clients with a viable site and a payment that is lower than their current energy bill are the strongest fit. The platform helps you prequalify before a full application, so you spend time on deals likely to fund.

Do I need a credit or financial services licence?

No. You are originating the deal, not lending. The licensed lender does the underwriting and carries the credit risk.