Not everyone can afford to pay $30,000 upfront for solar panels. Solar panel financing allows you to spread that cost over, say, 15 years, paying around $200 monthly, depending on taxes and interest rates. The best part? Generated electricity can offset a large portion of these payments, possibly reducing your financial burden by thousands of dollars.
If you can afford higher monthly payments, up to $600, you could shorten the loan term to as little as five years, leaving the remaining years of the solar system’s 25-year lifespan as, roughly speaking, free energy.
In this article, we’ll help you choose the best solar financing options. You’ll learn the difference between secured and unsecured solar loans, solar leases, and power purchase agreements (or PPAs). We’ll also compare the 7 best solar financing companies, so you can choose the one that aligns with your current financial situation and needs.
Source: Utility Dive
According to the EIA line graph, since the worst of the pandemic, U.S. electricity prices have continued to rise. In 2026, it’s projected to rise to more than 18 cents per kilowatt-hour, outpacing inflation and other energy costs like regular gasoline and heating oil.
As costs rise, more homeowners are turning to renewable energy sources, including solar panels. However, as mentioned, not everyone can afford the upfront $20,000 to $35,000 solar panel system investment – which is why they look for financing options.
Before signing agreements, it’s always smart to know your options. Let’s explore five different loan types, digging into their terms, interest rates, and more.
Secured solar loans are called that because they’re backed by your home equity or solar system, meaning lenders can hold a lien – the legal claim on your property – if you can’t pay. The lien is released when you pay off the loan.
Since it carries less risk for lenders, this type of solar financing is among the cheapest and has low interest rates.
Unsecured loans, in turn, can’t use your home equity or solar panels as collateral, which is why their approval rate depends on your credit score and income. Likewise, such loans are faster and easier to apply for, and they have higher interest rates.
With a solar lease, you rent (or lease) a solar system instead of owning it and pay a fixed monthly fee. Since you don’t own the panels, solar maintenance is not your responsibility. However, the downside is that you don’t qualify for tax credits or incentives except those granted to the lender.
A power purchase agreement (PPA) means you pay only for the electricity the solar panels produce, not the installation or panels themselves. In this case, you also don’t own the panels, so neither tax credits nor incentives apply.
Important: PPA charges are based on each kilowatt-hour (kWh) produced, and since they’re often cheaper than utility rates, you save more than you spend.
Typically, PPAs expire in 20 to 25 years. Then, you can either renew the agreement or have solar experts deinstall the system.
Equipment loans work similarly to secured solar panel loans, with one exception: the collateral may be only the solar system, not home equity. In this option, loan terms match the system’s lifespan.
| Solar Loan Provider | Loan Range | Min Credit | Term Length | APR Range |
| Clean Energy Credit Union | $5,000 – $100,000 | 640 | 5-20 years | 7.49% – 8.24% |
| Dividend | Up to $120k | 660 | 12/20 yrs | Secured, no down payment |
| GoodLeap | Up to $100,000 | 600 | 7-25 years | 2.98% – 9%+ |
| LightStream | $5,000 – $100,000 | Good – Excellent | 2-12 years | Varies |
| SoFi | $5,000 – $100,000 | Good – Excellent | 2-7 years | Varies |
| Sunlight Financial | Varies | 650 | ~20 years | ~3.3% |
| Upgrade | $1,000 – $50,000 | 580 | 24–84 months (2–7 yrs) | 7.74% – 35.99% |
Clean Energy Credit Union is a not-for-profit cooperative focused on “climate-friendly banking.”
Their mission is to involve people in the clean energy movement, which is why their solar electric system loans offer competitive fixed rates with flexible repayment terms of up to ~20 years. They also offer 100% financing for solar panels, installation, and battery storage, require no prepayment penalties, and promise not to increase rates before closing.
The only catch is that you must work with one of the company’s approved solar installation partners.
If you prefer installer-supported financing, consider Dividend Finance – one of the larger solar and home improvement lenders in the U.S. It provides loans that installers often present directly to customers at the point of sale.
One of Dividend Finance’s loan products is EmpowerLoan, a secured solar and storage loan that doesn’t require a cash down payment and can reach six figures.
GoodLeap (formerly Loanpal) is a large fintech lender specializing in solar and sustainable home improvement loans. It features long-term solar system loans, often up to around 25 years, and integrates with many solar installers.
LightStream is an online personal lender under Truist Bank that offers unsecured fixed-rate solar power loans for homeowners. You can borrow up to ~$100,000 with no collateral, no home lien, and no origination or prepayment fees.
SoFi is a popular lender that offers mortgage loans, student loans, and personal loans suitable for solar system financing. SoFi loans come with competitive interest rates for borrowers with a good credit history, plus flexible repayment terms and no origination fees.
Sunlight Financial works by partnering with solar contractors to provide custom solar and home improvement loan options. They support homeowners throughout the process – from loan credit approval to project completion and beyond.
Upgrade offers personal loans that you can use to purchase solar panels or complete home improvement projects. With transparent rates and flexible terms, Upgrade is a good fit for homeowners with average to good credit who can’t qualify for the lowest rates from specialized solar lenders.
There are two things to keep in mind when choosing a suitable lender:
Get a free solar quote before evaluating solar panel financing options to see how much you can actually save with solar.