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||TERM||LOAN RATES||Last Update|
|Alternatives Federal Credit Union||607-273-4611||See below||Solar Loans, Energy Efficiency Loans||NY||Up to 15 years||5.49%-6.49%|
|Alpine Bank||800-551-6098||See below||Solar Loans, Energy Efficiency Loans||CO||Not provided||Contact for details||February 2021|
|Bank Five||744-888-6100||See below||Mass Solar Loans, Home Energy Loans||MA, RI||Up to 15 years||4.49%-5.99%|
|CT Green Bank||860-563-0015||See below||Solar Loans, Energy Efficiency Loans||CT||Not provided||4.49%|
|Center for Energy and The Environment||612-335-5851||See below||Solar Loans, Energy Efficiency Loans, Home Improvement Loans||MN||Up to 15 years||2.50%-4.75%(4.928% APR*)||February 2021|
|City of Milwaukee||608-243-5000||See below||Solar Loans, PACE Financing||WI||Up to 15 years||4.50%-5.25%||February 2021|
|Clinton Savings Bank||888-744-4272||See below||Solar Loans, PACE Financing||MA||Up to 10 years||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||Not Provided|
|Eagle Community Credit Union||949-588-9400||See below||Solar Loans, Energy Efficiency Loans||CA||Up to 15 years||As Low as 4.99%||February 2021|
|Educational Employees Credit Union||559-437-7700||See below||ECOlogical Loan||CA||Up to 15 years||6.50%|
|Elevations Credit Union||800-429-7626||See below||Solar Loans, Energy Efficiency Loans||CO||Up to 15 years||2.75%|
|Energy Loan Network||844-356-5626||See below||Solar Loans||CA||Not provided||2.74%||July 2020|
|First Citizens’ Federal Credit Union||800-642-7515||See below||Solar Loans||MA||Up to 19 years||5.00%|
|Franklin First Federal Credit Union||413-774-6700||See below||Solar Loans||MA||Up to 15 years||4.99%||February 2021|
|GreenBiz Financial||800-764-3601||See below||Solar Loans, Energy Efficiency Loans||USA||Up to 20 years||As low as 3.99%||July 2020|
|LightStream (Division of Trust Financial Corporation)||Not provided||See below||Solar Loans, Home Improvement Loans||USA||Not provided||See LightStream website||July 2020|
|Mosaic Solar||855-746-7849||See below||Solar Loans, Energy Efficiency Loans||USA||Not provided||Not provided|
|Michigan Saves||517-484-6474||See below||Solar Loans, Energy Efficiency Loans||MI||Up to 15 years||As low as 3.99%||February 2021|
|Nebraska Energy Office||402-471-3359||See below||Sollar 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||Up to 20 years||6.50%|
|Redwood Credit Union||707-545-4000||See below||Solar Loans||CA||Up to 20 years||6.99%|
|1st Security||800-683-0973||See below||Personal Loans||WA||Up to 12 years||Not Provided|
|Sunlight Financial||888-850-3359||See below||Solar Loans, Home Improvement loans||USA||Not provided||Not provided|
|SF Fire Credit Union||415-674-4800||See below||Solar Loans||CA||Up to 20 years||6.99%|
|Shrewsbury Federal Credit Union||508-845-6755||See below||Solar Loans||MA||Up to 15 years||4.50%-5.99%|
|St. Lucie County Florida(Non-profit Organization)||772-468-1818||See below||PACE Program||FL||Up to 20 years||6.00%-9.00%|
|Stoughton Co-operative Bank||781-344-3080||See below||Solar Loans||MA||Up to 15 years||4.74%-5.50%|
|UmassFive College Federal Credit Union||800-852-5886||See below||Mass Solar Loans||MA||Up to 15 years||Starting at 4.49%APR||February 2021|
|Wheelhouse Credit Union||888-907-3628||See below||Solar Loans||San Diego and Southern California||Up to 20 years||4.74%|
|Matadors Community Credit Union||818-993-6328
|See below||Solar Loans, Energy Efficiency Loans||CA||Up to 20 years||Starting at 2.99%||July 2020|
|Verity Credit Union||800-444-4589||See below||Sustainable Lending Program
Solar Energy Loans
|Ygrene Energy Fund||866-634-1358||See below||PACE Program||CA, FL, MO||Not provided||Not Provided|
|Home Loan Investment Bank||800-223-1700×220||See below||Solar Loans, Energy Efficiency Loans||USA||Not provided||Not Provided|
|Bank Five||774-888-6100||See below||Mass Solar Loans||MA, RI||Up to 15 years||Not Provided|
|AmeriFirst||800-228-2179||See below||Home Improvement Loans||USA||Up to 15 years||6.99%|
|Bank of Colorado||402-434-3127||See below||Solar Loans||CO, NM||Not provided||Not Provided|
|BayCoast bank||508-678-7641||See below||Solar Loans, Energy Efficiency Loans||MA||Not provided||Not Provided|
|Clark Public Utilities||360-992-3355||See below||Solar Energy Program||WA||Up to 7 years||3.50%|
|First New York Federal Credit Union||518-393-1326 and press 3||See below||Solar Loans||NY||Up to 20 years||6.25%-7.00%||February 2021|
|Naveo Credit Union||617-547-3451||See below||Mass Solar Loans||MA||Up to 20 years||4.50%-6.00%||July 2020|
This home equity loan is available in up to 15 year terms for amounts up to $100,000. You pay interest for the first 18 months. You can even use the loan to pay for other home efficiency upgrades.
This is the nation’s first state-funded green bank. Their mission is to make solar and energy improvements more accessible with flexible terms. It offers no money down loans with low-interest rates, a generous rebate program and a path to a solar lease.
This Minnesota nonprofit provides low-interest loans for solar PV systems. *APR is based on a loan amount of $50,000 and a term of 15 years. The loan is secured by a mortgage on the property.
This collaboration between the City of Milwaukee and Summit Credit Union offers low-interest, fixed-rate loans for home solar. Financing is available for $1,000 to $20,000 and terms up to 15 years.
This local bank offers to finance in select towns in Massachusetts. Loans are available for amounts from $3,000 to $35,000. You can even re-amortize within 18 months if you want to take advantage of lower rates or lower monthly payments. Lower-income households may qualify for even more incentives with this offering.
Dividend is a company that specializes in financing renewable energy upgrades across the nation. They offer three loan options in most states, all with $0 down. They even have an option for solar plus storage.
California homeowners looking to go solar can apply for loan amounts from $5,000 up to $50,000 with terms ranging from 60 months to 180 months. Installations must be done by approved contractors.
Solar financing is available from $100 to $40,000 with low-interest rates. Products and services purchased must meet the Energy Efficiency Standards of the credit union. No home equity, appraisal or collateral is required to apply.
The Elevations Energy Loan offers low-interest, fixed-rate financing for solar and energy upgrades. Loan amounts and term options are flexible.
This network connects homeowners to lenders with fixed-rate, low monthly payment financing options for solar installations.
This credit union offers fixed-rate solar loans for 5 to 19-year terms. Available to Massachusetts homeowners, these loans are secured by a mortgage on the property.
You can only lend if you are a member of the credit union. To qualify for membership the borrower must live, work or go to school in Franklin County. Loans are available from $3,000 to $60,000 with 10 to 15-year repayment terms. Unsecured loans are available and you have the ability to re-amortize within the first 18 months.
They offer the following loan terms: 5, 7, 10, 12, 15, and 20 years. Rates are based on the customer’s credit score. Loans to finance Solar, Battery Storage, Generators, HVAC, Windows, Doors, Roofing(must be combined with Solar). They have a low, flat dealer fee.
This nonprofit is dedicated to making energy improvements easier for all Michigan energy consumers. They connect homeowners with approved contractors and lenders that provide a low fixed-rate loan with flexible terms. Financing ranges from $1,000 to $50,000 up to 15 years.
When you finance through PSE&G, you can repay your Solar Loan using Solar Renewable Energy Credits. PSE&G guarantees a minimum value for your credits, so price fluctuations are less of a problem. A few fees apply to those wishing to take advantage of this program, so include those fees when calculating the installation cost.
This credit union solar loan offers fixed-rate options for up to $35,000. Repayment terms are available for up to 20 years.
These fixed-rate loans are available in 60-240 month terms. With no annual fee and flexible rate terms, financing through this credit union makes solar affordable for more homeowners.
With this financing option, the amount of interest paid and loan term options are based on the amount borrowed. This offering for single-family homes has specific requirements for contractor eligibility.
This credit union partners with the Mass Solar Loan program. Loan amounts are up to $50,000 with a $500 maximum closing cost, but you can re-amortize within 18 months. The loan is secured by a lien on your home.
The non-profit Solar and Energy Loan Fund makes low-interest loans available to low and moderate-income households in Florida. PACE financing is also available, meaning that instead of taking out a loan, you can pay back the borrowed amount through property taxes over time. These are fixed-interest rates with 5-20 year terms.
Stoughton Co-Operative Bank
This local bank offers solar loans to residents of Bristol, Norfolk, Plymouth counties in Massachusetts. Terms range from 5 to 15 years with financing for $3,000 to $60,000.
As a partner with the Mass Solar Loan program, applicants can borrow up to $60,000 for up to 10 years (low-income subsidies are available) at a low interest fixed-rate. For those looking to use their loan for additional costs like roof repair and tree trimming, the MySolar Loan offers up to $75,000 for terms up to 15 years.
This credit union works directly with over 100 local installers to get you the best deal. Financing is available for up to $80,000 in terms of up to 240 months.
This credit union offers fixed-rate financing with no money down and no payments for 90 days. You can borrow up to $75,000 for terms of up to 240 months.
Ygrene connects homeowners to preferred contractors and low-interest rates. PACE home equity financing offers money for home improvements with any credit score and flexible payment plans. Payments are made annually with your property tax bill.
This bank offers FHA and standard loan options for home improvements, including solar. No equity is required and the low rates are fixed. This financing is available for single or multi-family homes, whether it be a mobile home, condo or other types of dwelling.
A UCC will be filed on the solar equipment.
Naveo Credit Union
This credit union partner with the Mass Solar Loan program to offer low-interest fixed-rate financing. The loan can fund up to 100% of your system, with a maximum loan amount of $60,000. For most loans up to $35,000, Naveo will file a lien for equipment under the Uniform Commercial Code (UCC-1) within the county the property is located. For loans above $35,000 or for more than 10 years, Naveo will file a mortgage lien.