Let’s say you take out a $10,000 loan at 5.75% interest over 7 years to finance your solar system.
Here’s how the loan payments might stack up against your energy savings:
You’ll pay a few thousand dollars more in loan interest and fees, but you stand to save over $29,000 in energy bills over the life of your system.
Want to run the numbers for yourself? Use our solar financing calculator to estimate your monthly payments.
Start rolling back your meter the moment you flip the switch. You can reduce or completely eliminate your electric bill from Day 1.
If you take out a loan, you can still claim the 30% Federal Tax Credit as a reward for investing in renewable energy. Applying that credit to your loan can help accelerate the payback schedule.
Companies who offer solar leases or PPAs keep the credit for themselves, which dampens the value of your investment.
Even with loan payments, a $10,000 grid-tied system can pay for itself in about 6 years. Since most solar panels are warrantied for 25 years, there’s plenty of time left to reap the rewards of cheap, renewable energy.
Federal Housing Administration (FHA) loans assist homeowners who are making improvements (like adding a solar system) to their property.
Max Loan Amount: $50,000
Interest Rate: 3.75% - 9.75%
Approval Time: 5-7 days
RocketLoans offers an impressive 24-hour approval window, and you can complete the entire application process online. It’s great for lightning-fast approval, but the rates are a bit higher than a Title 1 Loan.
We would only recommend this if your project is on a strict deadline, or if you do not qualify for a Title 1 Loan.
Max Loan Amount: $35,000
Interest Rate: 5.983% - 29.99%
Approval Time: 24 hours