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You are here: Home > Information Center > ENERGY FINANCE > Solar Loan vs Solar Lease
Solar Estimates FREE

Compare Solar Lease and Loans

You can finance or lease a solar panel system for your home. There are several options available to you. Lenders are often very willing to work with quality homeowners who improve the value of their homes with solar panels.

We do not recommend using credit cards to pay for your solar installation due to the typically higher rates. The best rates and possible tax deductions are available when tapping the value in your home with refinancing or a home equity loan.

Some finance companies like LendingClub Solar Loan will provide unsecured loans at competitive rates for loan amounts up to $25,000. We recommend that you purchase and own your solar panels using cash or a solar loan.

Our professional solar installers can help you with financing or leasing for your home solar panels. Click Here to find out about financing your solar panel system.

There are also solar loans backed by the federal government and insured by HUD that require no home equity for amounts up to $25,000 and may qualify for home interest tax deductions. With solar lease and Power Purchase Agreement (PPA) financing programs, you could save 10% compared to your current monthly electric bill, BUT you will be locked in to a long-term, 15 year contract AND giving up the majority of your potential savings to the leasing company.
Compare solar financing options in the chart
Compare Solar Financing

Remember, you do NOT own the solar panels with a solar lease or PPA, so you will give up the right to any solar tax credits or rebates. Be sure to understand any balloon payments and your options at the end of the solar lease term. For example, if you sell your home during the term, you will likely be required to
provide a lump sum payment or have the new homeowner take out a new lease. This could complicate your life in the event of a future home sale. Although some financing programs promise "no money down" with a solar lease or PPA, you may need 10% to 30% of the total cost as a down payment.


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