This guide is customized for you
Financing numbers shown are not samples. They are based on your solar system's pricing.
Who said solar is expensive? Finance your system and the monthly payments may be lower than your current electric bill! And unlike leasing, you own the system, and you get the 26% Solar Tax Credit.
About the 26% Solar Tax Credit
A tax credit is much better than a tax deduction.
Tax Deduction: Only reduces your taxable income.
Tax Credit: Your tax liability drops by the amount of the credit.
For example, suppose your tax liability is $10,000 and your solar tax credit is $6,000. Then, your tax liability will drop to $4,000.
And if your tax liability is smaller than the tax credit, you can carry over the residual balance of the tax credit for another year.
Pay by cash for maximized savings
And by cash, we include checks as well.
Cash offers the fastest return of investment and the lowest total costs. Along with the 26% Solar Tax Credit and no dealing with interest, cash offers the lowest net cost.
| Cash Price | 20,000.00 |
| 26% Solar Tax Credit | $5,200.00 |
| Net Cost | 14,800.00 |
EasySolarLoan
Finance at the cash price with the most competitive rates. With this financing, there is no lien placed on the home, but just on the solar system itself.
Short Term
| EasySolarLoan |
5 Years |
7 Years |
10 Years |
| Interest |
3.99% |
4.24% |
4.74% |
| Financed Amount |
$20,000.00 |
$20,000.00 |
$20,000.00 |
| Initial Monthly Payments |
368.24~~(First 12 Months) |
$275.59~~(First 12 Months) |
209.60~~(First 12 Months) |
| Subsequent Monthly Payments |
$243.76~~(Remaining 4 Years) |
$190.30~~(Remaining 6 Years) |
$148.80~~(Remaining 9 Years) |
| Early Payment Penalty |
No |
No |
No |
Long Term
| EasySolarLoan |
12 Years |
15 Years |
20 Years |
| Interest |
4.99% |
5.24% |
5.74% |
| Financed Amount |
$20,000.00 |
$20,000.00 |
$20,000.00 |
| Initial Monthly Payments |
$184.88~~(First 12 Months) |
$160.67~~(First 12 Months) |
$140.30~~(First 12 Months) |
| Subsequent Monthly Payments |
$132.55~~(Remaining 11 Years) |
$116.27~~(Remaining 14 Years) |
$102.45~~(Remaining 19 Years) |
| Early Payment Penalty |
No |
No |
No |
The subsequent payments assume that the 26% Solar Tax Credit is applied to the financing prior to Month 13. This tax credit amount is $5,200.00. Upon payment, the lender will re-amortize, or recalculate the remaining monthly payments. In addition, the lender may charge a one-time membership and UCC-1 filing fee.
CleanEnergy
Finance at the cash price with the most competitive rates. With this financing, there is no lien placed on the home, but just on the solar system itself.
| CleanEnergy |
12 Years |
15 Years |
| Interest |
5.25% |
5.79% |
| Financed Amount |
$20,000.00 |
$20,000.00 |
| Initial Monthly Payments |
$187.50~~(First 12 Months) |
$166.51~~(First 12 Months) |
| Subsequent Monthly Payments~~(Assumes tax credit is applied to financing) |
$134.50~~(Remaining 11 Years) |
$120.62~~(Remaining 14 Years) |
| Early Payment Penalty |
No |
No |
The subsequent payments assume that the 26% Solar Tax Credit is applied to the financing prior to Month 13. This tax credit amount is $5,200.00. Upon payment, the lender will re-amortize, or recalculate the remaining monthly payments. In addition, the lender may charge a one-time membership and UCC-1 filing fee.
Other Ways to Finance at the Cash Price
Listed are other lenders that finance solar systems at the cash price.
| Lender |
Provident |
Redwood |
Travis |
CleanEnergy |
LightStream |
| Max Term |
20 Years |
20 Years |
15 Years |
3 - 5 Years |
3 Years |
| Interest |
6.50% |
6.99% |
6.99%
| 3.25% - 3.75% |
4.99% |
|
| Early Payment Penalty |
No |
No |
No |
No |
No |
Service Finance
"Buy down" to get a low interest rate in exchange for financing a larger amount. In addition, start off with with low monthly payments. Then, apply your 26% Tax Credit towards the financing within 18 months and the monthly payments will remain the same.
| Service Finance |
15 Years |
20 Years |
| Interest |
3.79% |
3.79% |
| Financed Amount |
$24,390.24 |
$24,844.72 |
| Initial Monthly Payments |
$131.61~~(First 18 Months) |
$109.39~~(First 18 Months) |
| Subsequent Monthly Payments~~(Keep after applying tax credit prior to month 18) |
$131.61~~(Remaining 13.5 Years) |
$109.39~~(Remaining 18.5 Years) |
| Early Payment Penalty |
No |
No |
For 15 Year financing, the tax credit amount is $6,341.46, paid before Month 18. For 20 Year financing, the tax credit amount is $6,459.63, paid before Month 18. Contract price is $24,390.24 for 15 Year financing and $24,844.72 for 20 Year financing.
For the best rates, consider a HELOC loan
HELOC, also known as home equity loans, allow solar customers to tap into the equity of their home to get the best interest rates for their solar project. Because you are securing your financing with your home's equity, your lender may give you the best possible rates. Contact your bank for more information about their offerings.
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Choosing the Right Financing
Each financing option varies slightly with their features and terms. When choosing the right financing, ask yourself a few questions:
If I add up all my monthly payments together, how much in total am I paying to the lender?
It is temping to compare financing options by interest rate. However, the lower interest financing options (such as Service Finance) have a catch. They require you to finance a higher amount than the cash price.
Therefore, for payments, financing options where you can finance at the cash price (such as Provident and Travis) can be very competitive, even if interest rates are higher. This is because the financed amount is smaller.
To get an accurate picture, add up all the monthly payments together to see which financing option offers the best value.
Is there a chance I pay be paying off the financing early?
Suppose 1 month after your solar system is installed and your financing is complete, you decide to pay off the financing completely. None of the financing options have early payment penalties. However, you will owe the lender the financed amount plus the very small amount of accumulated interest.
Between the various lenders, the financed amount can vary by several thousand dollars. If you think there is a good chance you will pay your financing off early, it may be better to go with a lender where you can finance the cash price. This will avoid the several thousand dollars in sunk costs.
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Closing Thoughts
We have listed the best solar financing products with the best rates we are aware of. While there are other financing options, such as PACE programs and other solar loans, their rates are not competitive compared to what we have listed. Typically, they either have higher interest rates or they they require a "buy down" (financing a larger amount), which will get passed to you.
While we do our best to keep the calculated monthly payments accurate, please treat this information as a guide. Because we are not the lender, we cannot guarantee these rates, your actual payment schedule, or whether your lender will approve your applicaiton. Upon applying, the lender will provide official rates, terms, and payment schedule. The lender may factor in credit score, debt-to-income, and other information for determining credit.
