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Solar Loans: Compare Solar Panel Financing Options

Last updated on July 24, 2024
Written by 
Annie Millerbernd
Assistant Assigning Editor
Kim Lowe
Edited by 
Kim Lowe
Lead Assigning Editor
Fact Checked
Annie Millerbernd
Written by 
Assistant Assigning Editor
Kim Lowe
Edited by 
Kim Lowe
Lead Assigning Editor
Fact Checked

Solar panels can save tens of thousands of dollars on electric bills, but a solar panel system requires a steep upfront investment — $30,000 for the average system including installation, according to EnergySage, a website that reviews solar installation companies.

We've reviewed and chosen top lenders offering personal loans to help you finance your new solar panel system. Compare unsecured personal loans, home equity financing and cash-out refinancing to find the best way to pay for solar panels.

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Why Trust NerdWallet
  • What is a solar loan?
  • How do solar loans work?
  • How to compare solar loans
  • How to get a solar loan
  • Solar panel tax benefits
  • Other ways to finance solar panels
  • Are solar panels a good investment?

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. This does not influence our product evaluations or star ratings.

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SoFi Personal Loan: Best for Solar loans

SoFi
5.0

Est. APR

8.99-29.99%

Loan amount

$5K-$100K

Min. credit score

None

See Offers
on SoFi's website
on SoFi's website

Qualifications:

Key Facts:SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers.
Qualifications:
  • Must be at least 18 years old in most states.
  • Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
  • Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
  • Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
Available Term Lengths:2 to 7 years
Fees:
  • Origination fee: 0% to 7%.
  • Late fee: None.

LightStream: Best for Solar loans

Lightstream
4.5

Est. APR

6.99-25.29%

Loan amount

$5K-$100K

Min. credit score

660

See Offers
on LightStream's website
on LightStream's website

Qualifications:

Key Facts:LightStream is a solid option for good-credit borrowers, with no fees and a promise to beat competitors’ rates.
Qualifications:
  • Minimum credit score: 660, but can vary depending on the loan purpose and amount.
  • Maximum debt-to-income ratio: 50%.
  • Minimum credit history: 3 years.
  • Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
  • Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
Available Term Lengths:2 to 7 years
Fees:
  • Origination fee: None.
  • Late fee: None.

Best Egg: Best for Solar loans

BestEgg

Est. APR

7.99-35.99%

Loan amount

$2K-$50K

Min. credit score

600

See Offers
on Best Egg's website
on Best Egg's website

Qualifications:

Key Facts:Best Egg offers personal loans for borrowers who want to consolidate debt and need cash fast.
Qualifications:
  • Minimum credit score: 600.
  • Maximum debt-to-income ratio: 70% including a mortgage.
  • Minimum credit history: 3 years and 1 account.
  • Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
  • Must be a U.S. citizen or permanent resident and at least 18 years of age.
Available Term Lengths:3 to 5 years
Fees:
  • Origination fee: 0.99% - 9.99%.

Upgrade: Best for Solar loans

Upgrade

Est. APR

9.99-35.99%

Loan amount

$1K-$50K

Min. credit score

580

See Offers
on Upgrade's website
on Upgrade's website

Qualifications:

Key Facts:Upgrade personal loans offer multiple rate discounts and direct payment to creditors. A low minimum credit score requirement makes the perks stand out even more.
Qualifications:
  • Minimum credit score: 580.
  • Minimum number of accounts on credit history: One account.
  • Maximum debt-to-income ratio: 75%, including mortgage payments.
  • Minimum length of credit history: Two years.
  • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
Available Term Lengths:2 to 7 years
Fees:
  • Origination fee: 1.85% to 9.99%.
  • Late Fee: $10.
  • Failed payment fee: $10.

LendingClub: Best for Solar loans

Lending Club

Est. APR

8.91-35.99%

Loan amount

$1K-$40K

Min. credit score

600

See Offers
on LendingClub's website
on LendingClub's website

Qualifications:

Key Facts:LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit.
Qualifications:
  • Minimum credit score: 600; average borrower score is above 700.
  • Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
  • Maximum DTI: 40%.
  • Minimum credit history: 36 months and two accounts.
Available Term Lengths:2 to 5 years
Fees:
  • Origination fee: 3% to 8%.
  • Late fee: 5% of payment or $15 after 15-day grace period.
  • Insufficient funds: $15.

Navy Federal Credit Union Personal Loan: Best for Solar loans

Navy Federal Credit Union Personal Loan

Est. APR

8.99-18.00%

Loan amount

$250-$50K

Min. credit score

None

See Offers
on NerdWallet
on NerdWallet

Qualifications:

Key Facts:Navy Federal personal loans may be a good fit for most members, thanks to flexible amounts, consumer-friendly features and quick funding time.
Qualifications:
  • Must be a Navy Federal Credit Union member to apply.
  • No minimum credit score requirement.
  • Must provide personal information and contact details.
  • Must provide information on income and employment.
Available Term Lengths:1 to 5 years
Fees:
  • Origination fee: None.
  • Returned payment fee: $29.
  • Late fee: $29.
  • Federal Express fee: $5.65.
  • Certified Mail fee: $5.83.

Achieve Personal Loans: Best for Solar loans

Achieve

Est. APR

8.99-29.99%

Loan amount

$5K-$50K

Min. credit score

640

See Offers
on Achieve's website
on Achieve's website

Qualifications:

Key Facts:Achieve personal loans can be a good debt consolidation option for fair- or good-credit borrowers who qualify for one of the lender’s rate discounts.
Qualifications:
  • Minimum credit score: 640.
  • Maximum debt-to-income ratio: 70% including a mortgage payment or other housing expense.
  • Minimum income: None.
  • Minimum credit history: 3 years across 2 accounts.
  • Must be a U.S. citizen or permanent resident living in a state where Achieve operates.
  • Must provide a Social Security number or ITIN.
Available Term Lengths:2 to 5 years
Fees:
  • Origination fee: 1.99% - 6.99%.
  • Late fee: $8.

SoFi Personal Loan: Best for Solar loans

SoFi

Est. APR

8.99-29.99%

Loan amount

$5K-$100K

Min. credit score

None
See Offers
on SoFi's website
on SoFi's website

Qualifications:

Key Facts:SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers.
Qualifications:
  • Must be at least 18 years old in most states.
  • Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
  • Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
  • Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
Available Term Lengths:2 to 7 years
Fees:
  • Origination fee: 0% to 7%.
  • Late fee: None.

LightStream: Best for Solar loans

Lightstream

Est. APR

6.99-25.29%

Loan amount

$5K-$100K

Min. credit score

660
See Offers
on LightStream's website
on LightStream's website

Qualifications:

Key Facts:LightStream is a solid option for good-credit borrowers, with no fees and a promise to beat competitors’ rates.
Qualifications:
  • Minimum credit score: 660, but can vary depending on the loan purpose and amount.
  • Maximum debt-to-income ratio: 50%.
  • Minimum credit history: 3 years.
  • Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
  • Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
Available Term Lengths:2 to 7 years
Fees:
  • Origination fee: None.
  • Late fee: None.

Best Egg: Best for Solar loans

BestEgg

Est. APR

7.99-35.99%

Loan amount

$2K-$50K

Min. credit score

600
See Offers
on Best Egg's website
on Best Egg's website

Qualifications:

Key Facts:Best Egg offers personal loans for borrowers who want to consolidate debt and need cash fast.
Qualifications:
  • Minimum credit score: 600.
  • Maximum debt-to-income ratio: 70% including a mortgage.
  • Minimum credit history: 3 years and 1 account.
  • Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
  • Must be a U.S. citizen or permanent resident and at least 18 years of age.
Available Term Lengths:3 to 5 years
Fees:
  • Origination fee: 0.99% - 9.99%.

Upgrade: Best for Solar loans

Upgrade

Est. APR

9.99-35.99%

Loan amount

$1K-$50K

Min. credit score

580
See Offers
on Upgrade's website
on Upgrade's website

Qualifications:

Key Facts:Upgrade personal loans offer multiple rate discounts and direct payment to creditors. A low minimum credit score requirement makes the perks stand out even more.
Qualifications:
  • Minimum credit score: 580.
  • Minimum number of accounts on credit history: One account.
  • Maximum debt-to-income ratio: 75%, including mortgage payments.
  • Minimum length of credit history: Two years.
  • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
Available Term Lengths:2 to 7 years
Fees:
  • Origination fee: 1.85% to 9.99%.
  • Late Fee: $10.
  • Failed payment fee: $10.

LendingClub: Best for Solar loans

Lending Club

Est. APR

8.91-35.99%

Loan amount

$1K-$40K

Min. credit score

600
See Offers
on LendingClub's website
on LendingClub's website

Qualifications:

Key Facts:LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit.
Qualifications:
  • Minimum credit score: 600; average borrower score is above 700.
  • Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
  • Maximum DTI: 40%.
  • Minimum credit history: 36 months and two accounts.
Available Term Lengths:2 to 5 years
Fees:
  • Origination fee: 3% to 8%.
  • Late fee: 5% of payment or $15 after 15-day grace period.
  • Insufficient funds: $15.

Navy Federal Credit Union Personal Loan: Best for Solar loans

Navy Federal Credit Union Personal Loan

Est. APR

8.99-18.00%

Loan amount

$250-$50K

Min. credit score

None
See Offers
on NerdWallet
on NerdWallet

Qualifications:

Key Facts:Navy Federal personal loans may be a good fit for most members, thanks to flexible amounts, consumer-friendly features and quick funding time.
Qualifications:
  • Must be a Navy Federal Credit Union member to apply.
  • No minimum credit score requirement.
  • Must provide personal information and contact details.
  • Must provide information on income and employment.
Available Term Lengths:1 to 5 years
Fees:
  • Origination fee: None.
  • Returned payment fee: $29.
  • Late fee: $29.
  • Federal Express fee: $5.65.
  • Certified Mail fee: $5.83.

Achieve Personal Loans: Best for Solar loans

Achieve

Est. APR

8.99-29.99%

Loan amount

$5K-$50K

Min. credit score

640
See Offers
on Achieve's website
on Achieve's website

Qualifications:

Key Facts:Achieve personal loans can be a good debt consolidation option for fair- or good-credit borrowers who qualify for one of the lender’s rate discounts.
Qualifications:
  • Minimum credit score: 640.
  • Maximum debt-to-income ratio: 70% including a mortgage payment or other housing expense.
  • Minimum income: None.
  • Minimum credit history: 3 years across 2 accounts.
  • Must be a U.S. citizen or permanent resident living in a state where Achieve operates.
  • Must provide a Social Security number or ITIN.
Available Term Lengths:2 to 5 years
Fees:
  • Origination fee: 1.99% - 6.99%.
  • Late fee: $8.

» MORE: Compare the best home improvement loans

What is a solar loan?

A solar loan is an unsecured personal loan used to pay for solar panels and installation. Banks, credit unions and online lenders provide solar loans. Typical loan amounts are $1,000 to $100,000, and annual percentage rates are 6% to 36%.

How do solar loans work?

Solar loans are installment loans. You receive money in a lump sum and repay it in equal monthly installments over a predetermined period, typically two to seven years.

Unlike with home equity financing, there’s no collateral required with solar loans. This means your home or solar panels aren’t at risk if you miss payments, but you may have to pay late fees.

How to compare solar loans

Compare these features to find a low-cost solar loan that fits your budget:

Annual percentage rate

APR represents the total cost of a loan, including interest and any fees. It offers the best way to make an apples-to-apples cost comparison between loan offers and other financing options. The loan with the lowest APR is the least expensive.

Monthly payments

Affordable monthly payments are as important as getting a low rate. Be sure loan payments fit comfortably into your budget because missed or late payments can negatively affect your credit.

Fees

Some lenders may charge an origination fee of 1% to 10% of the loan amount. The lender can deduct the fee before sending you the funds, reducing the amount you receive.

Repayment term

The length of a loan’s repayment term affects the monthly payments. Some lenders offer extended repayment terms specifically for home improvement projects. Although loans with longer repayment terms have lower monthly payments, they result in higher total interest costs.

How to get a solar loan

  1. Get a firm cost estimate. Compare bids from multiple solar panel installation companies. This will tell you how much you need to borrow.

  2. Calculate solar loan payments. Use a solar loan calculator to determine what APR and repayment term will get you an affordable monthly payment.

  3. Check your rate. Many lenders offer pre-qualification, which lets applicants preview their potential loan rate, amount, monthly payment and repayment term. This requires only a soft credit pull, so you can review multiple offers before applying.

  4. Apply. Once you accept a loan offer, the lender may require documents to verify your employment, income, address and other information. Have your W-2s and tax documents ready to make the application process go smoothly.

  5. Get funded. If approved, expect to receive funds within a few days.

Solar panel tax benefits

The federal government provides a 30% tax credit to those who purchase and install a new solar panel system in their home by 2032.

For example, if you install solar panels in 2024, you could receive a $6,000 credit on a $20,000 system with the federal tax credit alone.

Tax credits reduce your tax liability. If you get a $6,000 credit, you can reduce your tax bill by $6,000. This credit is nonrefundable, meaning if you don’t owe taxes — or owe less money than the 30% credit amounts to — you won’t get that money back in a refund. You can, however, carry any unused credit amount to a future tax year.

You can take advantage of tax benefits if you own your system, no matter how you pay for it.

The federal solar panel tax credit decreases to 26% in 2033 and 22% in 2034.

Some states also offer tax benefits and other incentives for solar installation. You can look up your state’s offerings in the Database of State Incentives for Renewables and Efficiency.

Other ways to finance solar panels

Solar company financing

Some solar companies offer financing through third-party lenders. These loans can be similar to home improvement loans — unsecured with no down payment required. The payment plans could have lower rates and longer repayment terms than personal loans, making your monthly payment lower.

Compare a quote from a solar company with other options to find the least expensive one.

Home equity loan

If you know how much your solar panels will cost, you can apply for a fixed-rate home equity loan. These loans have lower rates and longer repayment terms than unsecured loans because putting up your home as collateral lowers the risk for a lender.

Home equity line of credit

A HELOC is another low-rate option that is secured by your home. It’s more flexible than a home equity loan because you can draw on funds as you need them, and you often have the option to pay only interest during the initial phase of the loan. Unlike personal and home equity loans, HELOCs have variable rates.

Cash-out refinance

A cash-out refinance is a second mortgage that’s larger than your current mortgage. You use the new loan to pay the old loan and “cash out” the difference to purchase solar panels. It’s a good option if current mortgage rates are lower than what you’re paying and if you can keep closing costs low.

Closing costs can be 2% to 5% of the mortgage’s cost. That means a $350,000 mortgage can have $17,500 in closing costs — more than half the cost of installing a new solar panel system.

Leasing or getting a power purchase agreement

If you don’t want to make a large upfront payment or are ineligible for federal and state tax credits, consider a power purchase agreement or leasing solar panels.

In both cases, you pay little or no upfront costs to essentially rent and use the solar panels. The owner of the panels collects payment from you, as rent or through usage, and receives federal tax credits or any available tax incentives from the government.

The U.S. Department of Energy has more details about the difference between a lease and a power purchase agreement.

Are solar panels a good investment?

Here’s how to determine whether solar panels are worth the investment:

Calculate your sun exposure, costs and savings. Solar panels will help people in some parts of the country save more money than others. For example, someone in Seattle might not get the same value from solar panels as someone in Phoenix because of the disparity in sunshine.

To estimate your savings, you first need to know how many kilowatt-hours you use and how much you’re paying for them. In 2022, the average household used 899 kilowatt-hours each month, according to data from the U.S. Energy Information Administration. In June 2024, residential customers paid an average of 17.8 cents per kilowatt-hour.

Then, figure out what size system you’ll need. You can use a solar savings calculator to see how many panels your home would need and how much energy they would generate.

Estimate your payback period. Your solar loan payback period is the time it takes for your electric bill savings to match the cost of installing the system. This will be years, not months.

Let’s say you pay $17,000 for new solar panels and they save you $1,500 per year on your utility bills. Your payback period would be a little over 11 years.

Other factors determining your payback period include maintenance costs and whether utility rates change in your area.

Last updated on July 24, 2024

Frequently asked questions

  • The best solar panel financing option has the lowest annual percentage rate. If you have equity in your home, that may mean getting a home equity loan or line of credit. If not, a personal loan can be used for solar panels. The lowest rates go to borrowers with high credit scores and incomes.

  • You get an unsecured solar loan in a lump sum and repay it, with interest, in fixed monthly installments. Repayment terms are typically from two to seven years, and payments usually start one month after the loan is funded. Use a solar loan calculator to calculate monthly payments.

  • Solar loans are typically unsecured personal loans used to finance the purchase and installation of solar panels. These loans can have amounts from $1,000 to $100,000. Personal solar loans are one way to fund solar panels; other options include home equity, federal incentives or leasing if you aren't ready to buy.

Why trust NerdWallet
  • 35+ personal loans reviewed and rated by our team of experts.
  • 20+ years of combined experience covering personal loans and financial topics.
  • Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
  • Governed by NerdWallet's strict guidelines for editorial integrity.
NerdWallet's personal loans content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in consumer lending. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch and many other national, regional and local publications. They have been cited in publications including The Harvard Kennedy School, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.

Methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.

NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.

To recap our selections...

NerdWallet's Solar Loans: Compare Solar Panel Financing Options

  • SoFi Personal Loan: Best for Solar loans
  • LightStream: Best for Solar loans
  • Best Egg: Best for Solar loans
  • Upgrade: Best for Solar loans
  • LendingClub: Best for Solar loans
  • Navy Federal Credit Union Personal Loan: Best for Solar loans
  • Achieve Personal Loans: Best for Solar loans
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