For many people, one of the first steps in going solar is finding solar financing. Fortunately, there are many credit unions, nonprofits, banks and lenders offering solar loans. With so many options available, choosing the right lender can seem tricky.
That’s why we’ve put together a helpful guide to finding the best solar loan providers and solar loan rates.
The best way to finance your solar panels depends on a wide range of factors. It’s important to research and compare a variety of solar loan providers and loan types. The lowest loan rates usually offer the most savings, but don’t ignore the other terms.The structure, fees and finer details can also determine whether a loan is suitable for you.
Most banks offer secured and unsecured solar loans.
Secured loans usually require substantial home equity to use as collateral. In return, you’ll often get lower solar loan rates, fewer fees and tax-deductible interest payments. Unsecured loans don’t require collateral and are usually approved more quickly. However, they tend to have higher solar rates and additional fees.
PACE loans are repaid through property tax assessments, but the loan rates are generally much higher. Finally, on-bill financing allows you to make loan payments via charges on your monthly utility bill.
Alternatively, credit unions and solar financing companies may provide less costly loans specifically for solar energy. Many solar panel manufacturers and installers offer loan services during the installation process. Several government-backed loan programs also provide low-cost financing to eligible homeowners.
First and foremost, the rates you’ll receive depend on your creditworthiness. Every lender uses their own set of criteria, so be sure to explore all your options.In some cases, your financial institution may also offer you more favorable terms. Whenever possible, apply for pre-qualification to receive more accurate rates without undergoing multiple hard credit inquiries.
Of course, the most reliable way to get excellent rates is to improve your creditworthiness.You can start by requesting your credit reports, carefully reviewing them and promptly disputing any mistakes.
Next, work on paying down your outstanding debts before applying for a new loan. If you have any accounts that were placed in collections, focus on paying those off first. These actions will help you raise your credit score and qualify for better solar loan rates.
However, it’s important to note that your credit score isn’t everything. Solar loan providers typically also base their decisions on your debt-to-income ratio. This metric is used in assessing your ability to pay and in setting your loan terms. Consider whether you can improve this ratio by reducing your debt or increasing your earnings.
By comparing the available rates, you’ll be able to make a confident, informed decision that’s best for you.
Trying to finance solar energy systems doesn’t have to be an intimidating process. From personal bank loans to specialty financial products, solar loan providers offer solutions for nearly everyone.
|SOLAR LOAN PROVIDER||CONTACT INFORMATION||PROGRAM DESCRIPTION||TYPES OF LOANS AVAILABLE||STATES AVAILABLE||LOAN RATES|
|Alternatives Federal Credit Union||607-273-4611||See below||Solar Loans, Energy Efficiency Loans||NY||5.49%
|CT Green Bank||860-563-0015||See below||Solar Loans, Energy Efficiency Loans||CT||4.49%|
|Center for Energy and The Environment||612-335-5851||See below||Solar Loans, Energy Efficiency Loans, Home Improvement Loans||MN||2.50%
|City of Milwaukee||608-243-5000||See below||Solar Loans, PACE Financing||WI||6.75%|
|Clinton Savings Bank||888-744-4272||See below||Solar Loans, PACE Financing||MA||6.50%|
|Dividend Solar||844-805-7100||See below||Solar Loans, PACE Financing||CA, AZ, CO, CT, DE, FL, GA, HI, IL, MA, MD, MI, MO, NC, NH, NJ, NM, NY, OR, RI, SC, TX, UT, VA||Not Provided|
|Eagle Community Credit Union||949-588-9400||See below||Solar Loans, Energy Efficiency Loans||CA||4.99%|
|Educational Employees Credit Union||559-437-7700||See below||ECOlogical Loan||CA||6.50%|
|Elevations Credit Union||800-429-7626||See below||Solar Loans, Energy Efficiency Loans||CO||2.75%|
|Energy Loan Network||844-356-5626||See below||Solar Loans||CA||6.30%|
|First Citizens’ Federal Credit Union||800-642-7515||See below||Solar Loans||MA||5.00%|
|Franklin First Federal Credit Union||413-774-6700||See below||Mass Solar Loans||MA||5.50%|
|Michigan Saves||517-484-6474||See below||Solar Loans, Energy Efficiency Loans||MI||6.50%|
|Nebraska Energy Office||402-471-3359||See below||Dollar and Energy Saving Loans||NE||3.50%|
|PSE&G Solar Loan Program||Description||See below||Solar Loan Program||NJ||11.18%|
|Provident Credit Union||800-632-4600||See below||Solar Loans||CA||6.50%|
|Redwood Credit Union||707-545-4000||See below||Solar Loans||CA||6.99%|
|SF Fire Credit Union||415-674-4800||See below||Solar Loans||NJ||6.99%|
|Shrewsbury Federal Credit Union||508-845-6755||See below||Solar Loans||MA||5.99%
|St. Lucie County Florida(Non-profit Organization)||772-468-1818||See below||PACE Program||FL||6.00%
|Stoughton Co-operative Bank||781-344-3080||See below||Solar Loans||MA||4.74%
|UmassFive College Federal Credit Union||800-852-5886||See below||Solar Loans||MA||5.00%|
|Wheelhouse Credit Union||888-907-3628||See below||Solar Loans||San Diego and Southern California||4.74%|
|Matadors Community Credit Union||818-993-6328||See below||Solar Loans, Energy Efficiency Loans||CA||3.99%|
|Ygrene Energy Fund||866-634-1358||See below||PACE Program||CA, FL, MO||Not Provided|
|Home Loan Investment Bank||800-223-1700×220||See below||Solar Loans, Energy Efficiency Loans||USA||Not Provided|
|Bank Five||774-888-6100||See below||Home Improvement Loans||MA, RI||Not Provided|
|AmeriFirst||800-228-2179||See below||Home Improvement Loans||USA||6.99%|
|Bank of Colorado||402-434-3127||See below||Solar Loans||CO, NM||Not Provided|
|BayCoast bank||508-678-7641||See below||Solar Loans, Energy Efficiency Loans||MA||Not Provided|
|Clark Public Utilities||360-992-3355||See below||Solar Energy Program||WA||3.50%|
|First New York Federal Credit Union||518-393-1326 and press 3||See below||Solar Loans||NY||Not Provided|
|Naveo Credit Union||617-547-3451||See below||Mass Solar Loans||MA||4.75%|
Energy efficiency solar loans with term up to 15 years, and maximum loan amount $25,000.
Energy efficiency solar loans with term up to 5, 7, 10, 12 years, and no money down.