What financing options are available for solar panels?

While the up-front cost of solar panels can be substantial, there is a wide variety of financing options available to make this investment more accessible: Personal + solar loans: Personal loans or solar loans can spread the cost over several years.

How do you finance a solar system?

Solar financing options are divided into two camps. Direct ownership of a solar system can be financed with a cash purchase or a solar loan. With the cost of solar panels plummeting and a 30% federal tax credit available, ownership has become the preferred option for homeowners in the last decade.

Should you finance a solar system?

There are several benefits to financing a solar system. First, it allows homeowners to go solar — and start accumulating energy cost savings — even if they don’t have enough cash to purchase a system outright. Second, financing solar panels allows you to front-load your energy cost savings with a zero-down loan.

Can you pay for solar panels with a personal loan?

Personal loans and home equity financing are two ways to pay for solar panels. This service is free and will not affect your credit score. SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers. Read our review of SoFi Personal Loan

Does a solar loan make solar panels more expensive?

Using a solar loan makes solar panels more expensive! When you finance solar panels using a loan, the average cost per watt will be closer to $3.62 per watt installed. Solar-specific loans usually include dealer fees that add an average of 19.99% to the principal of the loan.

Should I pay for my solar panel system upfront?

By selecting the right financing strategy, you can save thousands of dollars on your solar panel system and start generating clean energy immediately. Paying for your solar panel system upfront with cash is generally the most financially advantageous option in the long run.