Solar Panel Financing
Get pre-qualified for a solar panel loan in just minutes with no impact on your credit score.






Solar Panel Loans
Investing in solar power for your home can provide several financial and environmental benefits, increasing your home’s value and leaving you with cheap energy bills. While this process can save you money in the long run, it’s quite expensive up-front. For this reason, many people choose to finance this project by other means.
If you’re considering having solar panels installed in your home, you may already have considered how you’ll cover the cost of the installation. Read on to learn about solar panel financing: the cost involved, necessary credit history, and some of the best lenders for this job.
Applying for a solar panel loan is fast and easy:
How Pasha Funding Works
Compare Your Personal Loan Options
Can solar panels be financed?
Yes, you can pay for solar panel installation on finance. The most commonly used methods of payment are personal loans, FHA loans, home equity loans, and home equity lines of credit (HELOCs). We’ll guide you through all your options shortly.
What are the best solar panel financing lenders?
Here are our top five lenders for solar panel financing:
- Best Egg
- Discover
- LightStream
- PenFed
- Sofi
While these are some of the best lenders, they’re not the only lenders offering favorable financing terms. To find the best loan for your circumstances, compare the rates of the loans in our tables.
Best Egg
Discover
LightStream
SoFi
How much does it cost to get solar panels installed?
The cost of having solar panels installed depends on several factors including:
- Your energy usage
- Your location (installation companies may charge more in sunnier parts of the country where solar panels are particularly lucrative and in-demand)
- The type of equipment available in your area
- Whether you’re doing it yourself or paying an installation company to do it for you: it’s worth noting that most people hire reputable companies to install the solar panels for them
On average, an 11-panel system of four kilowatts at an average cost of $3.25 per watt would cost $9,620 after tax credit. Using the same system, a 29-panel system of 10 kilowatts at an average cost of $2.75 per watt would cost $20,350 after tax credit.
What is the best way to finance solar panels?
- Personal loans are generally a good option if you have good credit as you’ll likely be approved for a low-interest rate, making borrowing very affordable. How much you can borrow will depend on your creditworthiness and income, but you can receive your funding in as little as 2 hours after approval, and pay the loan off over a term of (typically) 2-5 years.
- FHA loans are insured by the Federal Housing Administration and are secured by your home. But unlike home equity loans, if you cannot repay the loan, the bank will not foreclose on your home. This is because lenders can collect insurance from the Federal Housing Administration for up to 90 percent of any loan. Note that you will (usually) need some kind of down payment if the value of the loan is over $7,500. To find out more about FHA loans, click here.
- Home equity loans are similar to personal loans in that they have consistent monthly payments, fixed interest rates, and fixed repayment timelines. The difference is they are a loan on your home equity, so work much like a mortgage, and will put your home at risk if you default.
- HELOCs are like credit cards and provide a line of credit that lenders borrow against. Here, lenders generally have a variable interest rate, so your payment is liable to increase or decrease as their interest rate and account balance fluctuate. Like home equity loans, HELOCs are secured against the equity you have in your home, so you may lose your home if you get into financial difficulties.
- 401(k) loans: many 401(k) plans allow you to take out a loan of up to 50% of your current retirement account value, or $50,000, whichever is smaller. This is a good option if you have bad credit, as no credit check is required. Be aware, however, that they usually restrict your account in some way until you pay off the loan, so it can affect your long-term retirement aims.
Quick links
Ready to apply for a roofing loan? Get started.
Need help finding the right loan?
No worries, we've got you covered! Compare personalized loan options in just minutes without impact on your credit score.
Do solar panel installers offer financing?
Yes, certain installation companies offer financing. Some offer long repayment periods, while some will allow you to pay for your solar panels minus the tax credit, and then they’ll keep the tax credit to pay off the remaining balance of your solar panel installation. If they offer full financing through a partner lender, make sure you compare what they offer with what you could get from an external lender.
Is it smart to finance solar panels?
If you can easily afford the repayments, then it may help you reduce your energy bills and increase the value of your home. That said, you also need to consider if you have the weather to make the most of them. People living in sunny areas can even get paid by the electricity company they’re connected to for the surplus electricity their panels produce, but if you live in Seattle, you’re probably not going to get the same benefits.
What is the solar tax credit for 2022?
If you take out a loan to pay for solar panel installation, you’ll qualify for the solar tax credit or investment tax credit (ITC). This federal incentive lets people claim back 26% of their total solar panel installation costs as part of their taxes.
Is a solar loan tax-deductible?
FHA-backed solar loans are usually tax-deductible. The amount you’ll save will depend on your tax liability.
What are the pros and cons of solar panel financing?
Here are some pros of solar panel financing:
- It adds value to your home as some people specifically look for solar panels when buying a home. More specifically, for a house worth $500,000 solar panels would add $21,500 in overall value
- It’s future-proof as it relies on a renewable energy source
- It’s better for the planet because it reduces the demand for fossil fuel-based energy
- You may make money from solar panels by selling your energy back to the grid
Here are some cons of solar panel financing:
- Solar panel technology is advancing quickly, so you may still be paying for panels that aren't as efficient as those in 3-10 years
- Financing anything that you borrow money for will cost more money than if you’d saved up and paid for it up-front, and you may not get your money back if you sell your home
What credit score do I need to finance solar panels?
This depends on what type of loan you’re applying for. Residential PACE loans, for example, are often available to those with poor credit, but they tend to come with a high interest rate and they don’t charge monthly - which can leave you struggling to make the 1 or 2 lump sum payments a month, so we don’t generally recommend them.
Generally speaking, most people won’t find they get a good return on investment if they have a score below 670.
Solar Panel Financing Calculator
To figure out how much you’ll pay for your financing, use our handy calculator:
Total Payment
-
Total Interest
-
Monthly Payment
-
Ready to apply for a personal loan?
Compare rates from top lenders with no impact on your credit, ever.
Compare and apply
Before making any financial decisions, ask yourself if you’re willing to use your home as collateral, how much you can afford to borrow, and whether you have enough home equity. Look into your credit score and see if you can boost it before applying for loans. Then it’s time to start comparing lenders. Look at each lender objectively, weighing up who can offer you the best options for your unique needs. Soon, you’ll have the funding you need and can begin your journey toward a home with solar panels!
Need help finding the right loan?
No worries, we've got you covered! Compare personalized loan options in just minutes without impact on your credit score.
Find Your Best Rate
Compare Best Personal Loans
Personal Loan Payoff Calculator
Personal Loan Lender Reviews
Personal Loans By Credit
Personal Loans for Fair Credit
Personal Loans for Good Credit
Personal Loans for Excellent Credit
Personal Loan Types
Auto Repair Loans
Credit Card Consolidation Loans
Fast Personal Loans
Home Improvement Loans
Horse Barn Financing
Wedding Loans
Family Planning Loans
Funeral Financing
Land Purchase Financing
Manufactured Home Financing
Medical Loans
Cosmetic & Plastic Surgery Financing
Owner Builder Construction Loans
Personal Loans for House Down Payment
Personal Loans for Self Employed
Personal Loans for Furniture Expenses
Student Loans
Debt Consolidation Loans
Vacation & Travel Loans
Emergency Personal Loans
Personal Loans with Co-signers
Home Improvement Financing
Appliance Financing
Bathroom Remodel Financing
Basement Remodel Financing
Boat Dock Loans
Deck Financing
Driveway Paving Financing
Fence Financing
Flooring Financing
Furnace Financing
Garage Financing
Home Addition Financing
Hot Tub Financing
HVAC Financing
Home Insulation Financing
Interior & Exterior Painting Financing
Kitchen Remodel Financing
Kitchen Cabinet Financing
Pole Barn Financing
Roof Financing
Solar Panel Financing
Swimming Pool Financing
Sunroom Addition Loans
Window Replacement Financing