Solar Loan Calculator
Estimate solar panel financing options
💡 Solar Financing Tips
- • Federal Tax Credit: You can claim 30% of the system cost as a tax credit (through 2032)
- • State Incentives: Many states offer additional rebates and tax credits
- • Net Metering: Sell excess power back to the grid for additional savings
- • Shop Around: Compare rates from multiple solar loan providers
- • Consider Loan Term: Longer terms = lower monthly payments but higher total interest
Understanding Solar Loans & Financing Options
A solar loan enables homeowners to pay for a rooftop solar panel system over time while reaping the benefits of lower utility bills from day one. Use our solar loan calculator above to estimate your monthly payment, total interest, and long‑term return on investment so you can decide if financing clean energy makes sense for your household.
In 2025, most solar panel loans are unsecured terms of 10–20 years with APRs ranging between 4–9 %. Shorter terms generally save money on interest but produce a higher payment, while longer terms lower the payment and can deliver immediate monthly net savings. Always compare several financing options—including home‑equity loans and credit‑union green loans—to lock in the best rate.
Solar Loan Calculator FAQ
Is it worth getting a loan for solar?
Thanks to the 30 % federal solar tax credit and rising electricity prices, many homeowners see positive cash flow from month one—meaning your solar loan payment plus minimal grid charges is often less than your old utility bill.
How does a solar loan work?
A lender pays the installer on your behalf; you repay the principal and interest in fixed monthly installments similar to an auto loan. Because you own the system, you keep all tax incentives and net‑metering credits.
How long is a typical solar loan?
The most common terms are 10, 15, and 20 years. Some credit unions also offer 5‑year and 25‑year options so you can balance a comfortable monthly payment against the total interest paid.
Which lenders offer solar panel loans?
Specialized “solar‑only” lenders such as Mosaic and Sunlight Financial dominate the market, but many community banks and credit unions now provide green‑energy or home‑improvement loans with competitive rates.
Are there alternatives to solar loans?
Yes. Cash purchases maximize ROI, while home‑equity lines of credit (HELOCs) can offer lower rates for qualified borrowers. Power‑purchase agreements (PPAs) and leases require no upfront cost but you don’t own the panels or tax credits.