What to Know and Where to Start
More than 2.5 million homeowners in the U.S. have already switched to solar energy, reaping the benefits of increased home value and significant reductions in electricity costs. If you’re considering joining them, financing options like solar loans can make the investment more accessible, even if paying upfront isn’t feasible.
Here’s a quick guide to understanding your solar loan options and how to pick the best one for your needs.
Solar Loan FAQs
Should I Buy or Lease My Solar Panel System?
When deciding between buying or leasing, consider your goals. Buying your solar system provides the best financial returns and maximizes savings over time. Leasing, however, might be a better fit if you’re looking for a maintenance-free, hassle-free way to reduce energy costs while contributing to environmental sustainability.
What’s the Difference Between Solar Loans and Solar Leases?
Both solar loans and leases can reduce your energy bills and lower your carbon footprint, but they operate differently. Loans allow you to own the system outright, often with tax benefits, while leases are typically maintenance-free, with fixed monthly payments.
What Should I Know About Secured vs. Unsecured Solar Loans?
Secured solar loans are often backed by collateral, like your home, offering lower interest rates but posing more risk. Unsecured loans usually come with higher rates but don’t require collateral, making them quicker to obtain.
How Do I Choose the Best Solar Loan?
Look for loan providers offering low interest rates, flexible terms, and no hidden fees. While some installers provide financing, their loans may not always be the best choice, as they often partner with third-party lenders. Always compare loan terms directly with various lenders.
Can You Get a Solar Loan with a Low Credit Score?
Yes, it’s possible! Although credit scores impact loan approval and interest rates, many solar financing providers offer options for those with less-than-perfect credit. Researching low-credit solar loans can help you find a financing solution tailored to your situation.
Is Solar a Good Investment for Retirement?
Absolutely. Solar energy systems provide fixed, predictable energy costs that can save thousands over time. For those on a fixed income, avoiding rising electricity rates makes solar a valuable investment in financial stability.
Financing Options by State
If you’re ready to explore solar loans, many states offer various options tailored to their residents. Check out some top lenders by state:
- California: GreenBiz Financial, LightStream
- New York: Alternatives Federal Credit Union, First New York Federal Credit Union
- Texas: Almika Renewable Finance, San Antonio Credit Union
- Florida: City of Tallahassee Utilities, St. Lucie County Florida
And many more, including national lenders like Mosaic and Clean Energy Credit Union, offering competitive terms across the country.
Here’s a basic list of banks that deal with Finance or refinancing your solar investment:
| Company | Service Area | Loan Types | Term |
|---|---|---|---|
| GreenBiz Financial | CA | Equipment | 5-20 years |
| LightStream | AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY | Equipment | |
| Home Loan Investment Bank | AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY | Mortgage, Equipment | 3-20 years |
| 1st Security | WA | Mortgage, Equipment | 3-12 years |
| Almika Renewable Finance | AR, NM, TX | ||
| Alternative Energy Revolving Loan Program | MT | ||
| Alternatives Federal Credit Union | NY | Mortgage | 10-15 years |
| Bank of Colorado | CO, NM | Mortgage | |
| Banner Bank | Equipment | ||
| BayCoast Bank | Mortgage | ||
| CT Green Bank | CT | Equipment | 12 years |
| Center for Energy and The Environment | MN | Equipment | 20 years |
| City and County of Honolulu | HI | Mortgage, Equipment | 20 years |
| City of Milwaukee | WI | Mortgage, Equipment | 15 years |
| City of Plano, TX | TX | Mortgage, Equipment | |
| City of Richland, Washington | WA | Mortgage, Equipment | 10 years |
| City of Tallahassee Utilities | FL | Mortgage, Equipment | 10 years |
| Clark Public Utilities | WA | Mortgage, Equipment | 7 years |
| Clean Energy Credit Union | AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY | Equipment | 12-20 years |
| Clinton Savings Bank | MA | Equipment | 10 years |
| Colorado Clean Energy Fund – Renu | |||
| Credit Human | LA, TX | Equipment | |
| Dividend Solar | AZ, CA, CO, CT, DE, FL, GA, HI, IL, MA, MD, MI, MO, NC, NH, NJ, NM, NY, OR, RI, SC, TX, UT, VA | Equipment, PACE | 20 years |
| ENSEMBLE BY CED | AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY | ||
| Eagle Community Credit Union | CA | Equipment | 3-15 years |
| Educational Employees Credit Union | CA | Equipment | 6 years |
| Elevations Credit Union | CO | Mortgage, Equipment | 3-15 years |
| EnFin Residential Solar Loans | AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY | Equipment | |
| EnerBank USA | AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY | Equipment | 12 years |
| Energy Finance Solutions | HI, MD, MI, NJ, NY | Equipment | 5-15 years |
| Energy Loan Network | AZ, CA | ||
| First New York Federal Credit Union | NY | Mortgage, Equipment | 20 years |
| Fort Collins Utilities | CO | Mortgage, Equipment | 5-20 years |
| Foundation Finance | Equipment | 10 years | |
| Franklin First Federal Credit Union | MA | Equipment | 15 years |
| Green Sky Credit | AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY | Mortgage, Equipment | 12 years |
| Greenpenny – Decorah Bank | IA, IL | ||
| Greenworks Lending | CT, DC, MD | Mortgage, Equipment | |
| HERO Program | PACE | 5-20 years | |
| Hamilton County, Ohio | OH | Mortgage, Equipment | 5 years |
| Idaho Governor’s OER State Energy Loan Program | ID | Mortgage, Equipment | 5 years |
| Investors Bank | NJ, NY | ||
| Iowa Economic Development Authority | IA | Mortgage, Equipment | 20 years |
| Jumpstart Energy Inc. | AZ, CA, HI | ||
| LA Solar Group | CA, NV, TX | ||
| Michigan Saves | MI | Mortgage, Equipment | 1-10 years |
| Mosaic | AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY | Equipment | 10-20 years |
| NYSERDA | Mortgage | 1-15 years | |
| National Bank of Arizona | Mortgage, Equipment | 2-5 years | |
| Nebraska Energy Office | NE | Mortgage, Equipment | 10 years |
| Oregon Department of Energy | OR | Mortgage, Equipment | 10-20 years |
| PSE&G Solar Loan Program | Equipment | 10 years | |
| Piedmont Electric Membership Corporation | NC | Mortgage, Equipment | 7 years |
| Provident Credit Union | CA | Mortgage, Equipment | 20 years |
| Puget Sound Cooperative Credit Union | WA | Mortgage, Equipment | 15 years |
| Redwood Credit Union | CA | Mortgage, Equipment | 5-20 years |
| Renew Financial | CA | PACE | 5-30 years |
| SF Fire Credit Union | CA | Equipment | 10 years |
| San Antonio Credit Union | TX | Mortgage, Equipment | 20 years |
| Self Help Credit Union | AL, FL, GA, NC, SC, TN, VA | Equipment | 10 years |
| Shrewsbury Federal Credit Union | MA | Equipment | 15 years |
| Sungage Financial | AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY | Equipment | 10-25 years |
| Town of Breckenridge, Colorado | CO | Mortgage, Equipment | 20 years |
| UpGrade NY | NY | Equipment | 15 years |
| Verity Credit Union | WA | Mortgage, Equipment | 15 years |
| Western State Bank | CO, ND, TX | Mortgage, Equipment | 15 years |
| Window World | Mortgage, Equipment |
Start Saving with Solar Today
Considering solar financing can be overwhelming, but with the right research, it’s easy to find an option that fits your budget and goals. Still have questions? Visit our Clean Energy Financing section to explore other renewable energy options, like heat pumps and efficient home improvements.
Switching to solar is not just an energy decision—it’s a financial investment in your home and future. With smart financing, you can join the millions already saving with clean energy.
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Take advantage of a government-sponsored rebate plan that has been available for over a decade! The Solar Tax Credit allows you to save significantly on your solar installation costs. Our Solar pro experts are here to guide you through the process and maximize your savings!
