How to find the right solar financing company for your home

The decision to buy or lease your solar energy system comes down to your financial priorities. Buying—whether with cash or a loan—lets you own the system and build home equity, and gives you direct access to any state tax incentives your area offers. For homeowners focused on maximizing long-term returns, buying with cash or signing a pre-paid lease or PPA is often the best fit.

Leasing or signing a power purchase agreement (PPA) means a solar company owns and maintains the system, and you pay a monthly rate for the electricity it produces—typically lower than what you'd pay your utility. You preserve capital flexibility, have no maintenance responsibilities, and see immediate savings on day one. Since lease and PPA projects still qualify for the federal commercial solar tax credit (even though the residential credit expired after 2025), competitive providers should pass those savings along as lower monthly rates, which can sometimes result in greater savings compared to high interest rate loans.

Solar loans and solar leases each have real advantages and disadvantages, and neither is the right answer for everyone. Both are great ways to go solar with very little money—often $0 down—upfront.

With a solar loan, you own your system, keep any available state incentives, and typically increase your home value—but you'll pay interest over the loan term, which reduces your total return compared to a cash purchase and can sometimes result in lower savings than a lease or PPA.

With a lease or PPA, you have zero maintenance responsibility, and because these projects still qualify for the federal tax credit, competitive providers should pass those savings through in the form of lower monthly payments. The trade-off is less energy independence and potential complications if you sell your home before the agreement ends.

The right choice depends on how you weigh capital access, home value, and simplicity. Use our solar calculator to estimate your savings under different financing scenarios.

A pre-paid solar lease or PPA is a hybrid financing option that's gaining traction in the post-tax-credit market. Instead of making monthly payments, you pay the full cost of the lease or PPA upfront—at a discounted rate—and then take ownership of the system after a defined holding period, typically around six years.

Because the solar company owns the system during the initial term, it can claim the federal commercial solar tax credit and pass much of that value—often around 20-30%—to you through a lower upfront price. After the holding period ends, most contracts allow you to take ownership of the system, often for $0 (though that varies by provider). You also don't have to pay the full upfront amount in cash—pre-paid leases and PPAs can often be financed with a solar loan, making them accessible without a large lump sum.

There are important nuances to understand before signing. Most contracts reference a "fair market value" transfer rather than explicitly guaranteeing a $0 transfer—so it's worth asking your provider how they define and calculate that figure. You'll also want to confirm what happens to warranties once ownership transfers to you, and whether monthly fees kick in if you decline ownership at year six. Equipment options may also be more limited than with a standard purchase, since these projects must meet federal foreign entities of concern (FEOC) compliance rules to qualify for the commercial tax credit.

A pre-paid lease or PPA is a compelling middle ground for homeowners who want a path to ownership and want to benefit indirectly from federal tax credits that purchased systems can no longer access. As with any solar agreement, read the full contract carefully—not just the sales materials—before committing.

The primary difference between secured and unsecured solar loans is collateral. Secured solar loans require you to put up an asset—usually your home—as collateral, which means lower interest rates but comes with risk. If you default for any reason, your lender can foreclose. Unsecured solar loans don't require collateral, so they're faster to approve and don't put your home on the line, but they typically carry higher interest rates and may have additional fees.

You can also finance solar through a home equity loan or HELOC, which are secured against your home equity and often offer lower fees than dedicated solar loan products.

Many different institutions offer solar financing, including local and national banks, credit unions, specialized solar lenders, and solar installers who offer in-house financing. When comparing your options, don't focus on interest rate alone—solar loans frequently carry dealer fees (also called origination fees), which can significantly increase your overall cost.

To spot hidden fees, ask your installer for both the cash price and the financed price. The difference is what you're paying in fees and interest charges. A loan with a low interest rate and a high dealer fee will often cost more than a loan with a higher interest rate and no fee.

Many solar installers offer financing options alongside their installation quotes, but not all of them. Installer-offered loans are typically unsecured loans sourced through a third-party lender the installer has partnered with—meaning you're entering into two separate agreements, one for installation and one for the loan, and the terms of each can differ.

In-house financing is convenient, but it's worth shopping around. Installer-offered loans can carry higher dealer fees than loans sourced directly through a bank, credit union, or specialized solar lender.

It depends on the type of financing you're pursuing. Solar loans—like most loans—factor in your credit score and debt-to-income ratio, and requirements vary by lender. That said, there are still paths forward if your credit isn't perfect. Some lenders specialize in working with homeowners who don't have strong credit histories, and government-backed options like PACE financing have their own qualification criteria that don't rely solely on credit score.

Leases and PPAs generally have less stringent requirements since you're entering a service agreement rather than taking on debt—making them a more accessible option for homeowners with lower credit. Pre-paid leases and PPAs financed with a solar loan will depend on the loan terms, so it's worth comparing a few lenders before assuming you won't qualify.

Read more about how to go solar with a lower credit score.

According to EnergySage Marketplace data from the second half of 2025, the median quoted solar loan rate was 7.5%, with a median loan term of 25 years. Your actual rate will depend on your credit score, the lender, whether the loan is secured or unsecured, and the loan term you choose.

But interest rate alone isn't the full picture. Solar loans frequently carry dealer fees—also called origination fees—that can increase the true cost of your loan. A loan advertised at a low rate may come with a high fee baked into the financed price, which can make it more expensive overall than a loan with a higher stated rate and no fee. Always compare the APR (which factors in both the rate and fees) and ask your installer to show you the cash price alongside the financed price so you can see the total cost clearly.

Yes—for many homeowners, installing a solar panel system is one of the smartest financial moves they can make heading into retirement. Electricity rates have risen an average of 2.8% annually over the past 10 years. And recently, that annual rate has been closer to 7% and will likely continue to increase, which means a growing portion of a fixed income goes toward utility bills every year. Solar converts that variable expense into a predictable, fixed cost—or eliminates it entirely—freeing up thousands in cash per year once the system is paid off.

Read more about solar as a retirement investment strategy.

The right solar loan depends on your specific situation—interest rates, fees, and terms vary considerably across lenders—so "best" is different for every homeowner. That said, based on EnergySage Marketplace data from the second half of 2025, the most frequently quoted loan products were from Credit Human, Climate First Bank, Dividend Solar, Atmos Financial, and EnFin Financing.

Seeing a lender quoted frequently is a meaningful signal. It means installers on EnergySage are actively recommending them to homeowners, which typically reflects competitive terms and a reliable experience. But frequent quotes aren't a substitute for doing your own comparison.

Browse our solar loan provider directory below to compare options available in your state.