SoFi is our top choice for the best solar loan provider because it offers same-day funding, high borrowing limits, and no fees. We evaluated more than 70 lenders based on loan costs, terms, borrowing requirements, customer experience, and more. × Investopedia earns a commission from these advertising partners. Loan Amount Please enter a valid loan amount between $1,000 and $100,000 If youre not seeing anything in the results that are a good fit for your needs, consider warranties from these companies: APR With Autopay Discount Recommended Minimum Credit Score Not Disclosed This lender does not disclose its minimum credit score requirements. Loan Amount APR Range Recommended Minimum Credit Score 650 This lender does not disclose its minimum credit score requirements. Loan Amount APR With Autopay Discount Recommended Minimum Credit Score 620 This lender does not disclose its minimum credit score requirements. Loan Amount APR With Autopay Discount Recommended Minimum Credit Score 680 This lender does not disclose its minimum credit score requirements. Loan Amount APR Range Recommended Minimum Credit Score 700 This lender does not disclose its minimum credit score requirements. Loan Amount APR Range Recommended Minimum Credit Score 600 This lender does not disclose its minimum credit score requirements. Loan Amount Why Trust Us 70 Lenders reviewed 31 Loan features considered 1,680 Data points analyzed 173 Primary data sources used Investopedia collected key data points from several lenders to identify the most important factors to borrowers. We used this data to review each lender for fees, accessibility, repayment terms, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right borrowing decision for their needs. Read our Full Methodology Best Solar Panel Loans for 2024 Best Solar Panel Loans for 2024 The Bottom Line Guide to Choosing Comparing Solar Loans How to Qualify for and Apply for a Solar Loan Alternatives How Solar Panel Tax Credits Work Why You Should Trust Us FAQs How We Pick Guide to Personal Loans Investopedia's Rating 4.8 Why We Chose It SoFi offers high borrowing limits ($5,000 to $100,000) and low annual percentage rates (APRs) of 8.99% to 29.49% based on your credit score. This range includes a 0.25% autopay discount (you have to enroll) and a 0.25% direct deposit discount (you need a SoFi account). You can also get a 0.125% rate discount if you’re an existing SoFi member. SoFi doesn't charge fees, so you won’t be charged an origination, prepayment penalty, or late fees. Most loans are disbursed the same day, so you can get the money right away if you sign your loan documents by 7 p.m. ET on a business day. It does not disclose minimum credit score requirements, and you can't use a co-signer or get a secured loan. If you have poor to fair credit, applying with a co-borrower may help you get approved. Pros & Cons Pros Most loans funded the same day Borrowing limits up to $100,000 No origination fees or late fees Excellent customer reviews on Trustpilot Relatively low APRs Qualifications Read the FullSoFi Personal Loans Review 2024 Investopedia's Rating 3.0 Why We Chose It GoodLeap is the largest point-of-sale financing provider for solar contractors, supporting more than 40,000 professionals, so there’s a good chance your solar installer works with the company. The company’s Flexpay loans come with low APRs and long terms, and they’re structured so that you can pay very low interest for the first 18 months while you pay down your loan with federal tax credits. There are no prepayment penalties. GoodLeap has an A- rating with the Better Business Bureau. Its application process is quick and easy, and you can get an instant decision from a mobile device. Pros & Cons Pros Low APRs Terms up to 25 years Low payments during the first 18 months Largest point-of-sale solar financing provider Cons Limited details available online Mixed customer reviews on Trustpilot Qualifications Investopedia's Rating 4.6 Why We Chose It Upgrade works with fair credit borrowers. It offers: With Upgrade, you get next-day funding and a highly-rated mobile app. Its online dashboard lets you manage your loan, including due date changes. You may also get secured loans to lower your APR if you have fair credit. Founded in 2016 by co-founder Renaud Laplanche, Upgrade does charge origination fees of 1.85% to 9.99%, depending on your credit. The lender also charges late fees. You can potentially get a loan from Upgrade with fair credit, but the best rates are for borrowers with excellent credit. Pros & Cons Pros Available to borrowers with a 620 credit score or above Offers secured and unsecured personal loans Access your funds within one business day Excellent customer reviews on Trustpilot Change your due date from the Upgrade dashboard Cons Origination fee up to 9.99% Late payment fees Qualifications Read the FullUpgrade Personal Loans Review 2024 Investopedia's Rating 4.0 Why We Chose It LightStream can fund your loan quickly—the same day by wire transfer if you sign your documents by 2:30 p.m. ET. The company offers: LightStream beats any unsecured rate offer with another lender. The lender also plants a tree with every loan. You should have good to excellent credit and a suitable debt-to-income ratio before applying because you can't check your rate without impacting your credit score. And once funded, you can't change your due date. Customer reviews for the San Diego company average of 1.31 stars out of five. Pros & Cons Pros Same-day wire transfer option No fees Borrowing terms up to 12 years Borrowing limits up to $100,000 Relatively low APRs Cons No pre-qualification option No due-date changes Only available to borrowers with good or excellent credit Qualifications Read the FullLightStream Personal Loans Review Investopedia's Rating 3.3 Why We Chose It Dividend Finance is a point-of-sale lender. This means your loan may be financed through a solar contractor. It is our top pick because some contractors may offer terms of up to 25 years. APRs as low as 0.99% may be available with some terms. Fifth Third Bank originates all loans and you can work with any Dividend-approved contractor. Other benefits include However, the San Francisco-based company lender has poor customer reviews on Trustpilot. Pros & Cons Pros May offer terms up to 25 years Streamlined application process No prepayment penalties Cons Mixed customer reviews Not a direct consumer lender Qualifications Investopedia's Rating 2.8 Why We Chose It Energy services and solar technology provider SunPower offers solar financing through its subsidiary, SunPower Financial. Low-interest loans can be used to purchase a SunPower Equinox solar system. SunPower was founded by Dr. Richard Swanson in the 1970s. It went public in 2005 and produced its one-billionth solar cell in 2014, some of which have powered NASA vehicles. SunPower offers lower rates, longer terms, and higher borrowing limits. Some borrowers may be eligible for 0% APR financing with a term of up to 25 years. SunPower's application process is fairly simple quick approvals. You may even be able to get financing through SunPower with fair credit. But, you can't use the loan to finance or buy anything other than a SunPower product. Pros & Cons Pros Some borrowers may be eligible for 0% APR Terms up to 25 years High borrowing limits Available to borrowers with a 600 credit score or above Cons Can only be used for a SunPower solar system Poor customer reviews on Trustpilot Qualifications APR Range Average Origination Fee Late Fee Time to Receive Loan Loan Amount Latest Repayment Reset All Hide, not for me Hide, not for me Hide, not for me Hide, not for me Hide, not for me Hide, not for me *APR ranges for some companies include a discount for automatic payments or existing bank customers. You can offset some of the cost of installing solar panels by claiming the federal residential solar energy credit. Congress approved it to be 30% of the total cost of installation for systems installed between 2022 and 2032. It drops down to 26% and 22% if you install panels in 2033 and 2034, respectively. The federal credit expires in 2035 unless it is renewed. SoFi is our top pick if you're looking for a direct unsecured solar loan. The online lender offers low rates and high borrowing limits. SoFi also offers other benefits like pre-qualification options. LightStream is another option if you want longer loan terms. If you have fair credit, Upgrade offers secured options. SunPower helps if you have fair credit—but only if you’re looking to install a SunPower solar system. If you’d like to finance your solar installation through your contractor, Dividend offers the best rates, while GoodLeap is more widely available. A solar loan isn’t a type of loan, but rather a way to use a personal loan. Many personal loan lenders and point-of-sale financing providers offer personal loans that can be used to purchase and install solar panels. A personal loan provides you with a lump sum of money upfront in exchange for fixed monthly payments over time. You need to apply for a personal loan, and lenders approve you based on your credit score, income, and other factors. The following table highlights the average cost of installing solar panels in certain cities across the United States. You can get a solar loan through your contractor or solar system provider, or you can apply directly for a solar loan from a bank, credit union, or online lender. Financing through your contractor or SunPower will generally offer the lowest APRs and the longest terms. If you want to choose a contractor that doesn’t offer financing, or if you want to use the loan money for other home improvement needs as well, consider credit unions and online lenders, both of which tend to offer lower rates than banks. Interest in solar power is generating more interest in the United States. According to the Solar Energy Industries Association, solar power grew by roughly 25% between 2013 and 2023. As much as 4% of the country's electricity generation comes from solar power as of 2023. According to Investopedia’s 2023 Personal Loan Borrower survey, funding major home improvements was the second most common reason cited for getting a personal loan, only after debt consolidation. When choosing a lender, you’ll want to weigh various pros and cons with each loan. Many borrowers favor loans with the lowest interest rate, which can save you money over time. But there are other factors to keep in mind as you compare loans: If you need a personal loan to purchase and install solar panels, a lender that specializes in solar product financing can be a great option. These lenders typically have low APRs, in addition to high maximum loan amounts. However, of the three solar panel loan specialist lenders we surveyed, all of them have loan terms of 25 years. Depending on where you live and the average cost of solar panels in your area, you may save more in interest by getting a shorter loan with a traditional personal lender. -Sana Siddiqui, Research Analyst, Investopedia Lenders typically ask that you meet eligibility criteria before you apply. Here are a few of the most common things that lenders consider from potential borrowers: To qualify for a personal loan, you’ll need: If you think you meet the general requirements, here’s how to apply: You have other ways to potentially finance solar panels if you don’t want to take out a personal loan. They include: A tax credit reduces the amount you would otherwise owe in taxes for that year. For solar PV systems installed between 2022 and 2032, you'll receive a federal tax credit equal to 30% of the cost of installing the equipment, after any utility rebates and before state rebates. For example, if you paid $24,000 for your system in 2023, you would owe $7,200 less in taxes for 2023. If you only owed $5,000 in taxes for 2023, you could carry over the remainder of the tax credit to 2024. Other tax incentives may be available from your state or city, including sales tax exemptions. Rebates and grants may also be available from your city, state, or utility company. Investopedia collected and analyzed hundreds of key data points from over 70 companies across three months to identify the most important factors for readers choosing a fair loan lending company. We used this data to review each company for fees, repayment terms, income requirements, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999 and has been helping readers find the best loans for those with fair credit since 2020. That’s a personal decision that depends on your financial situation. If the money you save on your electric bills exceeds the cost of financing solar panels over time, it’s likely worth installing solar panels on your home. If mitigating climate change is important to you, it may be worth getting solar panels even if you can’t recoup the costs in savings. Remember that rebates and tax credits may be available to help with the cost.You can use the National Utility Rate Database to estimate electricity costs in your area. However, no matter how much you may save in the long term, you should only take out a loan if you can afford to make the monthly payments. The average APR on a 24-month personal loan is 12.49% as of February 2024, according to the Federal Reserve. But you can get solar financing at a lower rate if you have excellent credit or get a loan through your contractor. Some point-of-sale financing providers may offer 0% APR financing to qualified borrowers. Most solar loans require a hard credit inquiry as part of the formal application. A hard inquiry will negatively impact your credit score slightly. Keep in mind that your credit score will be affected by how you handle your payments. If you make your payments on time, your credit score will certainly improve. Paying late or defaulting on your solar panel financing will cause your credit score to drop. The term solar loan is used to describe a specific use for a personal loan. A solar loan is essentially a personal loan, which is a lump sum repaid with fixed payments that include interest, used to purchase solar panels. A solar loan may also refer to other types of solar financing. Whether a loan for solar panels is secured or unsecured depends entirely on the lender. Some lenders offer homeowners secured loan options to finance their solar project. These often come with low fees and lower interest rates. The lender may take out a lien on your home to ensure you don't default on your obligation to repay the loan. Unsecured options, on the other hand, don't require any security. But they come with higher costs than secured loans. Some personal loan lenders offer home improvement loans for solar panels with terms of up to 12 years. Solar contractor financing may come with longer terms, such as 15 or 25 years. Choosing a shorter term will save you money on interest. Just make sure you can afford the monthly payments. Solar panel loans are generally secured by the panels themselves. This means that if you default, your panels can be repossessed by the loan provider. One thing to keep in mind, though, is that these loans typically come with lower interest rates, so repayment may not be as financially challenging as an unsecured loan. We researched and reviewed more than 70 institutions to find the best seven lenders you see above on this list. While we write individual reviews for most companies we research, we do not always write reviews for companies we would not recommend. These are the companies we researched, along with links to individual company reviews, to help you learn more before making a decision: Achieve, Affinity Federal Credit Union, Alliant Credit Union, American Express, Avant, Axos Bank, Bankers Healthcare Group, Best Egg, Bethpage Federal Credit Union, Blue Federal Credit Union, Boatloan.com, Boeing Employees' Credit Union, CapexMD, Citibank, Connexus Credit Union, Discover, Dividend Finance, ENT Credit Union, Fig Loans, First Tech Federal Credit Union, Future Family, GoodLeap, Greenstate Credit Union, Happy Money, Hiway Credit Union, Lake Michigan Credit Union, Laurel Road, LendingClub, LendingPoint, LendingUSA, Liberty Federal Credit Union, LightStream, Lyon Financial, Mariner, Money Key, Mountain America Credit Union, NASA Federal Credit Union, Navy Federal Credit Union, Netcredit, Old National Bank, OneMain Financial, OppLoans, Patelco Credit Union, PenFed, Personify Financial, PNC Bank, Prosper, Reach Financial, Regions, Reprise, Rocket Loans, Santander, Service Federal Credit Union, SoFi, Southeast Financial, Summit Credit Union, SunPower, TD Bank, Teachers Federal Credit Union, Trident Funding, Truist, U.S. Bank, Universal Credit, Upgrade, Upstart, USAA, Vantage Recreational Finance, Wells Fargo. To evaluate and rank personal loan providers we collected hundreds of data points across 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more. To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted. We grouped those factors into four broad areas: Learn more about how we evaluated personal loans in our complete methodology. Learn more about personal loans: Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. SoFi. "Personal Loans." GoodLeap. “Let’s Power Sustainability.” GoodLeap. “Frequently Asked Questions.” Better Business Bureau. "GoodLeap, LLC." Upgrade. "Personal Loans." Upgrade. “Are There Any Fees?” LightStream. "Solar Financing." LightStream. “About Us.” Better Business Bureau. "Lightstream." Dividend Finance. "Who We Are." Trustpilot. “Dividend Finance.” SunPower. "Our Company's History." SunPower. “SunPower Launches SunPower Financial.” U.S. Department of Energy. "Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics." Angi. "How Much Does Solar Panel Installation Cost? [2024 Data]." SEIA. "Solar Industry Research Data." U.S. Energy Information Administration. "What Is U.S. Electricity Generation by Energy Source?" Palmetto Solar. "Solar Lease Guide." Federal Reserve Board. “Consumer Credit.” Related Terms Emergency Loan: Types, Eligibility, Pros and Cons Emergency loans are a type of personal loan that provides fast access to cash. Learn how emergency loans work and about their pros and cons. more Car Title Loan: What It is, How It Works, Example A car title loan is a type of short-term loan in which the borrower pledges their car as collateral. These auto title loans can be predatory since borrowing terms are often unfavorable and can lead to borrowers losing their vehicles. more Signature Loan: Meaning, Overview, and Examples A signature loan is a personal loan offered by banks and other finance companies that relies only on the borrower’s signature and promise to pay as collateral. more What Is a Share-Secured Loan? Pros and Cons A share-secured loan, also known as a savings-secured loan, is a type of personal loan that's secured by the money in your bank or credit union account. more Swingline Loan: Definition and Use in Business A swingline loan is a type of loan that gives borrowers access to a large amount of cash for a short period of time. It can also be used as a line of revolving credit to draw on as needed. more Employee Loan: What It Is and Should You Get One? If you need to borrow money to cover unexpected costs or even something related to work, you may want to ask about employee loans. more Compare Personal Loans Rates
Best Solar Panel Loans for 2024
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Company APR Credit Score est. Loan Amount More Details Best Overall :fill(white):max_bytes(150000):strip_icc()/sofi-d3a06fcea0664f459ca369be9d67f0ba.png "Best Solar Panel Loans for 2024 (1)")
See DetailsCheck Rates Best From a Contractor :fill(white):max_bytes(150000):strip_icc()/GoodLeap-logo-8bdf139fdaa140f68224a1be39e1ecd8.jpg "Best Solar Panel Loans for 2024 (2)"){kind=logo}
See DetailsCheck Rates Best for Bad Credit :fill(white):max_bytes(150000):strip_icc()/Upgrade-Logo-bc0ec4b2fc0b48daaefbde361ccabe98.jpeg "Best Solar Panel Loans for 2024 (3)"){kind=logo}
See DetailsCheck Rates Best for Quick Funding :fill(white):max_bytes(150000):strip_icc()/Light_Stream_Loans-e56c203492c44dba97aa3f6842791277.jpg "Best Solar Panel Loans for 2024 (4)")
See DetailsCheck Rates Best for Repayment Terms :fill(white):max_bytes(150000):strip_icc()/Dividend_Dark__Light_Blue_on_White-d355acd537224a51b36598ec13ab7948.jpg "Best Solar Panel Loans for 2024 (5)")
See DetailsCheck Rates Best for Low Interest Rates :fill(white):max_bytes(150000):strip_icc()/SunPower-0107ddaf36004ce7bfa49453f1bbc1e6.jpg "Best Solar Panel Loans for 2024 (6)")
See DetailsCheck Rates Best Overall :SoFi
Best From a Contractor :GoodLeap
Best for Bad Credit :Upgrade
:fill(white):max_bytes(150000):strip_icc()/Upgrade-Logo-bc0ec4b2fc0b48daaefbde361ccabe98.jpeg "Best Solar Panel Loans for 2024 (9)"){kind=logo}
Best for Quick Funding :LightStream
:fill(white):max_bytes(150000):strip_icc()/Light_Stream_Loans-e56c203492c44dba97aa3f6842791277.jpg "Best Solar Panel Loans for 2024 (10)")
Best for Repayment Terms :Dividend Finance
:fill(white):max_bytes(150000):strip_icc()/Dividend_Dark__Light_Blue_on_White-d355acd537224a51b36598ec13ab7948.jpg "Best Solar Panel Loans for 2024 (11)")
Best for Low Interest Rates :SunPower
Compare the Best Solar Panel Loans for 2024
Best For SoFi Best Overall 8.99% - 29.49% 0.00%-7.00% $0.00 0 days $5,000 - $100,000 84 months Check Rates GoodLeap Best From a Contractor 2.99% - 5.49% N/A N/A N/A $5,000 - $135,000 25 years Check Rates Upgrade Best for Bad Credit 9.99% - 35.99% 1.85%–9.99% $10.00 1 day $1,000 - $50,000 84 months Check Rates LightStream Best for Quick Funding 6.99% - 25.49% 0.00% $0.00 0 days $5,000 - $100,000 240 months Check Rates Dividend Finance Best for Repayment Terms 4.99% - 9.99% 0.00% N/A 0 Days $10,000 - $120,000 25 years Check Rates SunPower Best for Low Interest Rates 4.99% - 9.00% N/A N/A N/A N/A 300 months Check Rates The Bottom Line
Guide to Choosing the Best Solar Panel Loan
What Is a Solar Loan and How Do They Work?
Average Cost of Installing Solar Panels State Average Cost Atlanta, Georgia $35,400 Bridgeport, Connecticut $20,500 Charleston, South Carolina $38,900 Chicago $23,600 Detroit $30,250 Las Vegas $29,000 Minneapolis $24,500 New York $26,500 Newark, New Jersey $26,500 Phoenix $30,400 Salt Lake City $20,700 Seattle $23,700 Wilmington, Delaware $32,200 Where to Get a Solar Loan
Comparing Solar Loans
How to Qualify for and Apply for a Solar Loan
Alternatives to a Solar Loan
How Solar Panel Tax Credits Work
Why You Should Trust Us
Frequently Asked Questions
Is It Worth Getting a Loan for Solar Panels?
What Is the Average Interest Rate on a Solar Loan?
Does Financing Solar Panels Hurt Your Credit?
What Is the Difference Between a Solar Loan and a Personal Loan?
Are Solar Panel Loans Secured or Unsecured?
How Long Is a Typical Solar Loan?
What Happens If I Default on a Solar Panel Loan?
Companies We Reviewed
How We Pick the Best Solar Panel Loans
Guide to Personal Loans
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Best Debt Consolidation Loans for September 2024 Best Personal Loans From Banks for 2024 Best Low-Interest Personal Loans for 2024 Best Loans for Excellent Credit for 2024 Best Personal Loans With No Origination Fees for 2024 Best Secured Personal Loans for 2024
