Solar Loan Rates (2025): What APR Can You Get?
Current solar loan rates, credit score requirements, and how to find the best financing for your solar panels
Key Takeaways
- •Excellent credit (750+): 4.99-6.99% APR from GoodLeap, Mosaic, Dividend
- •Good credit (700-749): 7-10% APR from Sunlight, credit unions
- •Fair credit (650-699): 10-15% APR, limited lenders
- •Target: Get 3+ quotes, prefer 0-fee loans under 7% APR
Solar loan rates in 2025 range from 4.99% to 20%+ APR depending on your credit score, lender, loan term, and location. The average homeowner with good credit (700+) can expect rates between 6-9% APR for a solar loan.
But here's what most solar companies won't tell you upfront: [VERIFY] many "low-rate" solar loans come with hidden dealer fees of 15-30% that inflate your system cost. A $30,000 solar system with a "5.99% APR" loan and 20% dealer fee actually costs you $36,000 before interest.
This guide covers real solar loan rates from major lenders, shows you exactly how credit score affects your APR, breaks down monthly payment examples, and explains how to avoid the most common financing traps.
Finance from $309/month
Your new solar bill could be less than your current electric bill
Compare financing optionsSolar Loan Rates by Credit Score (2025)
Your credit score is the single biggest factor in your solar loan rate. Here's what to expect:
| Credit Score | APR Range | Rating | Typical Lenders |
|---|---|---|---|
| 750+ | 4.99-6.99% | Excellent | Mosaic, GoodLeap, Dividend |
| 700-749 | 7-10% | Good | Sunlight, Dividend, credit unions |
| 650-699 | 10-15% | Fair | Sunlight, LoanPal, credit unions |
| <650 | 15-20%+ | Poor | Very limited options, consider lease/PPA |
Credit Score Impact Example
A $30,000 solar loan over 12 years at different credit-based rates:
Cost difference: $30,240 between excellent and fair credit. Improving your credit score by 100 points can save you more than the solar system costs.
Solar Loan Types Compared
Not all solar loans are created equal. Here's how the main types stack up:
| Feature | Secured Solar Loan | Unsecured Solar Loan |
|---|---|---|
| APR Range | 4.99-8.99% | 7-15% |
| Credit Score Min | 680-700 | 640-660 |
| Collateral Required | Yes (home equity) | No |
| Approval Speed | 2-4 weeks | Same day - 3 days |
| Loan Amount | Up to $100k+ | $5k-$50k |
| Foreclosure Risk | Yes | No |
HELOC Comparison
APR: 8-12% (variable)
Best for: High equity, want flexibility
Pro: Tax-deductible interest
Con: Variable rate can increase
Personal Loan
APR: 7-18%
Best for: No equity, fast funding
Pro: No collateral required
Con: Higher rates than secured
Top Solar Loan Lenders (2025)
These lenders specialize in solar financing and work directly with solar installers:
Mosaic
APR Range
2.99-9.99%
Loan Terms
5-25 years
Max Loan
$100,000
Dealer Fees
12-20%
Best for: Homeowners with good to excellent credit who want flexible terms and work with Mosaic partner installers.
Key features: [VERIFY] 20-year loan options, same-day pre-approval, 18-month payment deferral option, 100% financing, online application. Most popular solar lender with 500,000+ loans funded.
GoodLeap (formerly Loanpal)
APR Range
0.99-8.99%
Loan Terms
10-25 years
Max Loan
$125,000
Dealer Fees
15-25%
Best for: Excellent credit borrowers (720+) seeking the absolute lowest APR with established solar companies.
Key features: [VERIFY] Industry-leading low rates for top credit scores, battery storage financing included, same-day decisions, works with 500+ solar installers nationwide. Watch for higher dealer fees.
Dividend Solar
APR Range
4.99-9.99%
Loan Terms
7-20 years
Max Loan
$50,000
Dealer Fees
8-15%
Best for: Borrowers who want lower dealer fees and more transparent pricing.
Key features: [VERIFY] Lower dealer fees than competitors, 12-month payment deferral, no prepayment penalties, accepts lower credit scores, focus on customer education and transparency.
Sunlight Financial
APR Range
5.99-11.99%
Loan Terms
10-25 years
Max Loan
$75,000
Dealer Fees
16-22%
Best for: Good credit borrowers who prioritize speed and work with regional solar installers.
Key features: [VERIFY] Same-day credit decisions, works with 1,000+ contractors, 18-month interest deferral options, mobile-friendly application. Accepts fair credit but rates increase significantly.
Credit Unions
APR Range
6-12%
Loan Terms
5-15 years
Max Loan
$25k-$100k
Dealer Fees
0%
Best for: Borrowers with fair credit or those who want zero dealer fees and direct lending.
Key features: No dealer fees (you pay lender directly), more flexible underwriting for fair credit, local relationships, may offer special "green energy" loan programs. Top options: Navy Federal, PenFed, local credit unions.
Finance Your Solar System
Your new solar bill could be less than your current electric bill
Based on $30,000 at 7% APR for 12 years
Free • No credit impact to check rates
How to Qualify for Solar Loan Rates
Solar lenders evaluate three main factors when setting your rate:
Credit Score (60% of Decision)
Your FICO score is the primary rate driver. Solar lenders use mid-score (median of 3 bureaus).
How to maximize your score:
- • Pay down credit card balances below 30% utilization (below 10% is ideal)
- • Dispute any errors on credit reports (free at AnnualCreditReport.com)
- • Don't close old credit cards (hurts average account age)
- • Wait 45 days after paying down debt for scores to update
- • Avoid applying for new credit 6 months before solar loan
Debt-to-Income Ratio (25% of Decision)
DTI = (Total monthly debt payments / Gross monthly income) × 100
DTI requirements:
- • Below 36%: Excellent, best rates
- • 36-43%: Good, standard rates
- • 43-50%: Borderline, higher rates or denial
- • Above 50%: Very difficult to qualify
Pro tip: Pay off a small loan (car, personal) before applying to lower DTI. Even reducing DTI by 5% can improve your rate by 1-2%.
Loan-to-Value & Home Equity (15% of Decision)
For secured loans (HELOC, home equity), lenders want you to maintain 15-20% equity after the loan.
Example calculation:
- • Home value: $400,000
- • Current mortgage: $250,000
- • Available equity: $150,000
- • Max loan at 85% LTV: $340,000 - $250,000 = $90,000
- • Your $30k solar loan easily qualifies
Don't Apply Until You're Ready
Each loan application triggers a hard credit pull that reduces your score by 3-5 points for 12 months. Multiple inquiries for the same purpose within 14-45 days count as one inquiry, so get all your solar loan quotes within a 2-week window.
Better approach: Use pre-qualification (soft pull) to check rates without hurting your credit. Most lenders offer this online.
Solar Loan Payment Examples
Here's what you'll actually pay per month for a $30,000 solar system at different rates and terms:
6% APR (Excellent Credit)
10 years
$333/mo
Total: $39,967
12 years (most popular)
$290/mo
Total: $41,760
20 years
$215/mo
Total: $51,596
10% APR (Good Credit)
10 years
$396/mo
Total: $47,556
12 years
$396/mo
Total: $57,024
20 years
$290/mo
Total: $69,479
15% APR (Fair Credit)
10 years
$485/mo
Total: $58,199
12 years
$500/mo
Total: $72,000
20 years
$395/mo
Total: $94,800
Factor in the Federal Tax Credit
Solar systems qualify for a 30% federal tax credit ($9,000 on a $30,000 system). You receive this as a tax refund after filing, not at purchase.
Smart strategy: Take the full loan, receive tax credit at tax time, then make a $9,000 lump sum payment to reduce principal. This drops your remaining balance to $21,000 and can save $10,000+ in interest over the loan term.
How to Get the Best Solar Loan Rate
1. Get 3-5 Quotes from Different Installers
Solar installers typically partner with 2-3 lenders. By getting quotes from multiple installers, you access different lender networks and can compare rates side-by-side.
What to compare:
- • APR (annual percentage rate)
- • Dealer fees (add 0-30% to system cost)
- • Origination fees
- • Prepayment penalties
- • Monthly payment at same term length
- • Total interest paid over life of loan
2. Prefer 0-Fee Loans Under 7% APR
The sweet spot for solar financing is 5.99-6.99% APR with zero dealer fees. This combination minimizes both your upfront cost and long-term interest.
Warning about "low-rate" solar loans:
Many installers advertise "2.99% APR!" loans but hide 18-25% dealer fees. A $30,000 system with 20% dealer fee actually costs $36,000. You're paying $6,000 upfront to "buy down" the rate. Run the math - a 6.99% APR loan with 0% dealer fee is almost always cheaper total cost.
3. Choose Loan Term Based on Monthly Budget
Most solar loans offer 10-25 year terms. Longer terms = lower monthly payment but more total interest.
Recommended terms by situation:
- • 10 years: If you want to pay off quickly and can afford $350-400/mo
- • 12-15 years: Best balance of payment and interest (most popular)
- • 20-25 years: If you need lowest possible payment ($200-250/mo) or plan to sell soon
Pro tip: Take the 20-year loan for low payments, but pay extra monthly. Most solar loans have no prepayment penalty, so you can pay off in 10 years at your pace while maintaining flexibility.
4. Check Your Local Credit Union First
Before accepting installer financing, check with your credit union. Many offer "green energy" or "renewable energy" loans with:
- ✓0% dealer fees (you borrow directly from credit union)
- ✓Rates 1-2% lower than solar lenders for similar credit
- ✓More flexible underwriting for fair credit
- ✓Local service and relationship banking
Find credit unions at MyCreditUnion.gov. Most require membership ($5-25 one-time fee).
5. Avoid These Solar Financing Traps
- ✗Deferred interest promotions: "0% for 18 months" often means you owe ALL interest retroactively if not paid off. Terrible deal.
- ✗PACE loans: Attached to property, must pay at sale, higher foreclosure risk. Only use as last resort.
- ✗Dealer fee over 15%: Unless you're getting a rate under 4%, high dealer fees aren't worth it.
- ✗Prepayment penalties: Rare but predatory. Walk away if lender charges fees for early payoff.
- ✗Applying without quotes: Get loan pre-approval AFTER you have 3+ solar system quotes to ensure you borrow the right amount.
Frequently Asked Questions
What is a good interest rate for a solar loan?
A good solar loan rate is 6-8% APR with 0% dealer fees for borrowers with good credit (700+). Excellent credit (750+) can secure 4.99-6.99% APR. Rates above 10% APR are on the high side - if you're quoted 12%+, consider improving your credit score or exploring credit union options before proceeding. Always compare the total cost (system price + dealer fees + interest) not just the APR.
Are solar loan rates fixed or variable?
Most solar loans from companies like Mosaic, GoodLeap, Dividend, and Sunlight offer fixed rates - your APR and monthly payment never change over the loan term. This protects you from rate increases. HELOCs (home equity lines of credit) used for solar are typically variable rates tied to the prime rate, meaning payments can increase if interest rates rise. For solar, we recommend fixed-rate loans for predictability.
How do dealer fees affect my solar loan rate?
Dealer fees (also called origination fees or buy-down fees) are added to your solar system cost by the installer to cover the lender's commission and buy down your APR. [VERIFY] Here's how it works:
Example: $30,000 solar system
- • Option A: 2.99% APR with 20% dealer fee = $36,000 financed @ 2.99%
- • Option B: 6.99% APR with 0% dealer fee = $30,000 financed @ 6.99%
- • Option B total cost over 12 years: $41,760 (saves $5,000+)
Always ask installers for both the no-fee cash price and the financed price. Calculate which option costs less over your planned ownership period.
Can I refinance my solar loan for a lower rate?
Yes, solar loans can be refinanced just like any personal loan or mortgage. If your credit score has improved by 50+ points, interest rates have dropped, or you've paid down the principal significantly, refinancing can save money. Use personal loan refinancing from companies like SoFi, LightStream, or Earnest. You'll need good credit (680+) and the remaining balance must meet the lender's minimum ($5,000+). Refinancing makes most sense if you can lower your APR by 2+ percentage points and have 5+ years left on the loan.
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Related Resources
Solar PPA vs Lease vs Buying
Compare all solar financing options to see which saves the most money
Bad Credit Solar Financing
Options for credit scores below 650, including PACE loans and co-signers
30% Federal Solar Tax Credit
How to claim $9,000+ in federal tax credits for your solar system
Solar Panel Cost Guide
Average prices by system size and how to avoid overpaying
Sources & Methodology:
- Solar loan rates verified from lender websites and rate sheets (January 2025)
- Credit score requirements from FICO and lender disclosures
- Dealer fee ranges from installer surveys and industry reports
- Monthly payment calculations use standard amortization formulas
- Federal tax credit info from IRS.gov and Form 5695 instructions
- Industry data from SEIA (Solar Energy Industries Association) and EnergySage