Financing
You do not have to pay for everything in cash. These are the ways of financing a solar installation in Colombia, with their advantages and their small print.
In Colombia you can finance solar panels in several ways: paying cash (the best return), a consumer loan, green credit lines and — for businesses — leasing or a power purchase agreement (PPA) with no up-front investment. The key is to compare the total financing cost, not just the monthly instalment, and to check who captures the tax incentives.
At a glance
| Option | Who it is for | Up-front investment | Captures incentives? |
|---|---|---|---|
| Paying cash | Anyone with the capital available who wants the best return. | High | Yes, directly |
| Consumer / general-purpose loan | Households that prefer to spread the payment without collateral. | Low or none | Yes (you are the owner) |
| Green loan | Households and businesses financing efficiency or renewable energy projects. | Low or none | Yes (you are the owner) |
| Solar leasing | Businesses that prefer not to tie up capital. | Low or none | Depends on the contract |
| PPA (power purchase agreement) | High-consumption businesses that want cheaper energy without investing. | None | No (the operator captures them) |
In detail
You pay for the whole installation up front. It is the most cost-effective option in the long run because there is no financing cost.
Advantages
Worth bearing in mind
A bank or credit union finances the installation as a general-purpose loan, which you repay in monthly instalments.
Advantages
Worth bearing in mind
Credit lines aimed at sustainable investment, often channelled by development banks (such as Bancóldex or Findeter) through commercial banks, with preferential terms.
Advantages
Worth bearing in mind
A financial institution buys the system and leases it to you; at the end of the contract you can exercise the purchase option. It has accounting advantages for companies.
Advantages
Worth bearing in mind
A third party installs and operates the system at your site and you pay only for the energy generated, at an agreed tariff normally lower than the grid's. No initial investment.
Advantages
Worth bearing in mind
Compare the total cost, not the instalment
It depends on your profile. If you have the capital, paying cash gives the best return because you avoid the financing cost and capture the incentives. If you prefer to spread the payment, compare the total financing cost (not just the instalment) across consumer loans, green loans and, for businesses, leasing or a PPA.
Yes. If the monthly loan instalment is lower than the saving the system generates on your bill, the project can be cash-flow positive from the start. That is precisely the analysis worth doing before signing.
Normally the owner of the asset. In a lease it is usually the financial institution until the purchase option; in a PPA it is the operator. So if the Law 1715 incentives are part of your decision, make it explicit in the contract.
Yes. Development banks (such as Bancóldex or Findeter) channel credit lines for sustainable investment through commercial banks, and several banks offer green loan products. Terms and availability change, so it is worth checking them at the moment you decide.
The saving and the instalment depend on your project. Receive quotes with financing options from verified installers, free of charge.