Solar Panel Financing

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

Best Egg

✔ Funding: Borrow $2,000 - $50,000
✔ Minimum Credit Score: 640
✔ APR: 5.99 - 29.99%
✔ Loan term: 3 - 5 years
✔ Funding turnaround: 1 - 3 business days

With Best Egg personal loans, borrowers with fair to good credit can get funding for 3-5 years and have the option to use the loan for a variety of purposes.

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Discover

Discover

✔ Funding: Borrow $2,500 - $35,000
✔ Minimum Credit Score: 660
✔ APR: 5.99% - 24.99%
✔ Loan term: 3 - 7 years
✔ Funding turnaround: within 24 hours

With Discover personal loans, borrowers can apply up to $35K in funding as fast as next business day. Best for those who want to consolidate debt and have a good credit score.

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LightStream

LightStream

✔ Funding: Borrow $5,000 - $100,000
✔ Minimum Credit Score: 660
✔ APR: 2.49% - 19.99%
✔ Loan term: 2 - 7 years
✔ Funding turnaround: as soon as same business day

LightStream offers up to $100k personal loans as soon as same business day without origination fees and easy to use mobile app.

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SoFi

SoFi

✔ Funding: Borrow $5,000 - $100,000
✔ Minimum Credit Score: 680
✔ APR: 4.99% to 19.53%
✔ Loan term: 2 - 7 years
✔ Funding turnaround: 1 - 3 business days

With SoFi personal loans, borrowers can get access to up to $100,000 with APR starting as low as 4.99% with extra bonus perks ($500 for each funded loan) and fast turnaround time. 24/7 customer support available.

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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.