Can I get financing for solar panels with no money down?

Yes. One of the main advantages of using an unsecured personal loan for your solar project is that you can often finance 100% of the cost. This means you can cover the entire solar panel installation cost—including hardware, labor, and permits—without needing a down payment. This makes going solar accessible even if you don't have a large amount of cash saved up for the initial investment.

Does a solar loan cover installation and battery storage?

Absolutely. A personal loan provides you with a lump sum of cash that you can use for all project-related expenses. This includes not just the solar panels, but also critical components like inverters, mounting racks, labor costs for the installation, and increasingly popular additions like a home battery storage system (e.g., Tesla Solar Roof or Powerwall). This comprehensive financing allows you to build the exact system you want.

What credit score is needed for the best solar financing?

While qualification criteria vary by lender, you'll generally need a good to excellent credit score—typically 670 or higher—to qualify for the most competitive rates and terms on a solar loan. Some lenders work with applicants in the fair credit range (around 600-669), but the interest rates will likely be higher. A strong credit profile demonstrates financial reliability and reduces risk for the lender.

How does the Federal Solar Tax Credit work with a personal loan?

When you use a personal loan, you own the solar system outright. This makes you eligible to claim the Federal Solar Tax Credit (ITC) directly on your federal income taxes. The credit is a percentage of your total system cost. Many homeowners finance the full cost of the system, and then when they receive their tax refund, they make a large principal payment on their loan to reduce the balance and overall interest paid.

Is it better to get a loan from a solar installer or a third party?

There are pros and cons to both. Installer financing can be convenient, but it may come with higher interest rates or fees baked into the project cost. Securing your own third-party personal loan allows you to shop around for the best possible rate and terms. It also positions you as a cash buyer with the installer, which can sometimes provide more negotiating leverage on the final price of the solar installation.

Can I sell my home if I have an outstanding unsecured solar loan?

Yes. Because an unsecured personal loan is not tied to your property, it does not create a lien on your home. This simplifies the home-selling process significantly. The loan is your personal obligation, and it stays with you. You can continue making payments after you sell, or you can use proceeds from the home sale to pay off the remaining loan balance. This is a key advantage over secured financing like a HELOC or some specific solar financing products that can complicate a property transfer.

Solar Panel Financing

Fund your residential solar panel installation with a simple, fixed-rate personal loan and start saving on energy bills sooner.

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Switching to solar energy is a significant investment in your home's future and a powerful way to reduce your carbon footprint and monthly utility bills. However, the high upfront cost of a home solar system, often ranging from $15,000 to $40,000 or more, can be a major obstacle. While some installers offer financing, the terms can be confusing and may not always be the most competitive. Tapping into your home's equity isn't always desirable or possible. This is where a personal loan for solar panels offers a clear and straightforward path forward.

Why Use a Personal Loan for Solar Panel Installation?

A solar panel loan is a type of unsecured personal loan specifically used to cover the costs associated with purchasing and installing a residential solar energy system. Unlike a Home Equity Line of Credit (HELOC) or a home equity loan, an unsecured loan doesn't require you to use your house as collateral. This means the lender can't place a lien on your property, offering you greater peace of mind. The process is typically much faster than equity-based financing, with funds often available in just a few business days after approval.

This financing flexibility is crucial. A solar loan can cover the entire project: the panels themselves, inverters, battery storage systems like a Tesla Powerwall, installation labor, permits, and any necessary electrical upgrades. You receive the funds as a lump sum, empowering you to pay your chosen installer directly, as if you were a cash buyer. This can sometimes give you more negotiating power on the total solar panel installation cost. With a fixed interest rate and a set repayment term, your monthly payments will be predictable, making it easy to budget alongside your new, lower electricity bills.

Estimating Your Solar System Cost

Solar Panels (10kW system) 25 panels × ~$500/panel	$12,500
Inverter & Mounting Hardware System components	$4,500
Labor & Installation Professional crew	$8,000
Permits & Inspection Fees Varies by location	$1,500

Estimated monthly

$454/mo

Based on a $26,500 loan with a 7-year term at 11% APR

The total cost of going solar varies widely based on your home's size, energy consumption, location, and the equipment you choose. The example above illustrates a common scenario. Remember to also factor in potential savings from the Federal Solar Tax Credit and any local incentives, which can significantly reduce your net cost. A personal loan allows you to finance the gross amount and then use the tax credit refund to pay down a portion of the loan principal early, if you choose.

See What Your Solar Loan Could Look Like

Get a clear picture of your potential rate and monthly payment. Checking takes minutes and won't impact your credit score.

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The Solar Financing Process in 4 Steps

How It Works

1
1. Check Your Rate
Fill out our simple online form with your desired loan amount and basic information. This initial step is a soft credit pull and will not affect your credit score.
2
2. Compare Loan Offers
If you pre-qualify, you'll see personalized loan offers from our network of lenders. Compare APRs, monthly payments, and loan terms to find the best fit for your budget.
3
3. Finalize & Get Funded
Select an offer and complete the final application with the lender. Once approved, the funds are typically deposited directly into your bank account within 1-3 business days.
4
4. Pay Your Installer
With the funds in hand, you can pay your solar installation company and move forward with your project, owning your system outright from day one.

Loan amount: $5,000 – $50,000
APR: 7.99% – 35.99%
Term: 24 mo – 84 mo

Your actual Annual Percentage Rate (APR) depends on factors like your credit score, loan amount, term length, and credit usage and history. Only the most creditworthy applicants qualify for the lowest rates.

Solar Loan Options: Personal Loan vs. Alternatives

When considering how to finance solar panels, you have several choices. Each comes with its own set of pros and cons. While financing directly through your solar installer can seem convenient, it may not offer the most competitive rates or flexible terms. Understanding the differences is key to making the best financial decision for your home.

Comparing Solar Financing Options

	Unsecured Personal Loan	Installer Financing / Solar Lease	HELOC
Collateral Required	No (Unsecured)	Usually No	Yes (Your Home)
Interest Rate Type	Fixed	Fixed or Variable	Variable
Ownership	You own the system	Varies (Lease vs. Loan)	You own the system
Funding Speed	Fast (1-5 days)	Varies with project	Slow (Weeks to months)
Federal Tax Credit	You claim it	Only if you own, not lease	You claim it

Qualifying for a Solar Panel Loan

What Lenders Typically Look For

Good to Excellent Credit: A credit score of 640 or higher is generally preferred for the best rates, though some lending partners may consider scores in the fair range.
Verifiable Income: Lenders need to see that you have a steady source of income sufficient to handle the new monthly loan payment.
Low Debt-to-Income (DTI) Ratio: Your DTI ratio, which is your total monthly debt payments divided by your gross monthly income, should ideally be below 40%.
Positive Credit History: A history of on-time payments and responsible credit management demonstrates to lenders that you are a reliable borrower.

If your credit profile is on the borderline, consider paying down existing credit card balances to lower your credit utilization or adding a co-applicant with a stronger financial profile to your application.

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It's fast, free, and gives you a real-time view of your solar financing options.

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Tips for a Smart Solar Investment

Financing your solar project is a major decision. Beyond securing the loan, a few key steps can ensure your investment pays off for years to come.
Get Multiple Quotes: Don't just go with the first solar installer you find. Get at least three detailed quotes to compare equipment, warranties, and installation costs.
Understand the Tax Credit: The Federal Solar Tax Credit (also known as the ITC) can cover a significant portion of your system's cost. Consult a tax professional to understand how it applies to you and how you can claim it.
Account for Future Needs: Consider if you might buy an electric vehicle or add other major electric appliances in the future. Sizing your system appropriately now, and including battery storage in your loan, can save you money later.
Check for Prepayment Penalties: Most personal loans do not have prepayment penalties, but it's always wise to confirm. This gives you the freedom to pay off the loan early with your tax credit or other savings without incurring extra fees.

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Frequently Asked Questions About Solar Panel Loans

Can I get financing for solar panels with no money down?
Yes. One of the main advantages of using an unsecured personal loan for your solar project is that you can often finance 100% of the cost. This means you can cover the entire solar panel installation cost—including hardware, labor, and permits—without needing a down payment. This makes going solar accessible even if you don't have a large amount of cash saved up for the initial investment.
Does a solar loan cover installation and battery storage?
Absolutely. A personal loan provides you with a lump sum of cash that you can use for all project-related expenses. This includes not just the solar panels, but also critical components like inverters, mounting racks, labor costs for the installation, and increasingly popular additions like a home battery storage system (e.g., Tesla Solar Roof or Powerwall). This comprehensive financing allows you to build the exact system you want.
What credit score is needed for the best solar financing?
While qualification criteria vary by lender, you'll generally need a good to excellent credit score—typically 670 or higher—to qualify for the most competitive rates and terms on a solar loan. Some lenders work with applicants in the fair credit range (around 600-669), but the interest rates will likely be higher. A strong credit profile demonstrates financial reliability and reduces risk for the lender.
How does the Federal Solar Tax Credit work with a personal loan?
When you use a personal loan, you own the solar system outright. This makes you eligible to claim the Federal Solar Tax Credit (ITC) directly on your federal income taxes. The credit is a percentage of your total system cost. Many homeowners finance the full cost of the system, and then when they receive their tax refund, they make a large principal payment on their loan to reduce the balance and overall interest paid.
Is it better to get a loan from a solar installer or a third party?
There are pros and cons to both. Installer financing can be convenient, but it may come with higher interest rates or fees baked into the project cost. Securing your own third-party personal loan allows you to shop around for the best possible rate and terms. It also positions you as a cash buyer with the installer, which can sometimes provide more negotiating leverage on the final price of the solar installation.
Can I sell my home if I have an outstanding unsecured solar loan?
Yes. Because an unsecured personal loan is not tied to your property, it does not create a lien on your home. This simplifies the home-selling process significantly. The loan is your personal obligation, and it stays with you. You can continue making payments after you sell, or you can use proceeds from the home sale to pay off the remaining loan balance. This is a key advantage over secured financing like a HELOC or some specific solar financing products that can complicate a property transfer.

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Personal loan disclosure

Money Savvy is not a lender. We are a marketing service that connects consumers with participating lenders. Rates, amounts, and terms vary by lender, your credit history, and other factors.

Loan amounts: $1,000 – $100,000
Repayment terms: 3 – 84 months
Min APR: 5.99%
Max APR: 35.99%
Origination fees: 0% – 10% of the loan amount
Late fees: May apply; vary by lender

Representative example: A $10,000 loan with a 36-month term at an 18.99% APR would have an approximate monthly payment of $366.39 and a total cost of $13,190.04, including interest and a $500 origination fee.

Your actual APR depends on your credit score, income, and other factors. Only borrow what you can afford to repay.

California residents: California Financing Law disclosures available upon request.