What is the longest term available for a solar loan?

While terms can vary by lender, 25-year (or 300-month) loan terms have become a common and popular option for financing residential solar projects. Some specialty lenders may offer even longer terms, but 15, 20, and 25 years are the most widely available extended options in the unsecured personal loan market.

Is a 25-year solar loan a secured loan like a mortgage?

No. The long-term solar loans offered through our partner network are unsecured personal loans. This is a critical distinction. Unlike a mortgage or a home equity line of credit (HELOC), the loan is not secured by your property. Your home is not used as collateral, which means the lender cannot place a lien on it. This results in a simpler application process and less risk for you as the homeowner.

Can I pay off a 20-year solar loan early without penalties?

In most cases, yes. The vast majority of modern personal loans, including those from our lending partners, do not have prepayment penalties. This gives you the flexibility to pay off the loan ahead of schedule if your financial situation changes, such as through a bonus, inheritance, or when you sell your home. Always confirm this detail in the loan agreement before signing.

How does a 25-year solar loan affect selling my house?

Because it's a personal loan, the debt is tied to you, not the house. When you sell your home, you are still responsible for paying off the remaining balance of the loan. Typically, the seller uses a portion of the proceeds from the home sale to pay off the solar loan in full at closing. Studies have shown that owned solar systems can increase a home's resale value, often covering the outstanding loan balance.

Why would I choose a 25-year loan if it costs more in total interest?

The primary reason is cash flow management. For many households, having a lower, predictable monthly payment is more important than the total long-term interest cost. If a 25-year loan results in a monthly payment that is less than your average electric bill, the project becomes immediately cash-flow positive. It makes an expensive home improvement project affordable within a tight monthly budget.

Can I finance a battery system with a long-term solar loan?

Absolutely. Long-term solar loans are designed to cover the total project cost. This includes not only the solar panels and inverters but also labor, installation, and energy storage systems like a Tesla Powerwall or similar home battery. Financing the entire system in one loan simplifies the process and allows you to achieve greater energy resilience from day one.

20 & 25 Year Solar Loans

Secure financing for your residential solar system with an extended term of 15 to 25 years, designed to minimize your monthly payment.

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High upfront solar costs can feel out of reach.

The initial quote for panels and installation is a huge number.
Our lender network offers financing up to $100,000 to cover the entire project, including installation and batteries.
Standard 5-10 year loan payments are too high for my monthly budget.
We specialize in extended 15, 20, and 25-year terms designed to significantly lower your monthly payment.
I don't want to tap into my home equity or get a second mortgage.
Our options are unsecured personal loans, meaning your home isn't used as collateral.
It's hard to compare long-term financing options apples-to-apples.
Our platform lets you see pre-qualified offers from multiple lenders, clarifying the impact of different term lengths.

Unlock Low Monthly Payments with a Long-Term Solar Loan

For many homeowners, the biggest barrier to going solar isn't the desire for clean energy—it's the five-figure price tag. A long-term solar loan, with a term of 15, 20, or even 25 years, addresses this challenge directly. By extending the repayment period far beyond the typical 7 or 10-year personal loan, you can drastically reduce your monthly payment, often to a level at or below what you were paying for electricity.

Think of it like a mortgage. A 30-year term makes a $300,000 house affordable for a typical budget; a 20 or 25-year solar loan does the same for a $40,000 solar energy system. This financing structure makes it possible to achieve energy independence and lock in your energy costs for decades, all while maintaining comfortable monthly cash flow.

How 15, 20, and 25-Year Solar Loans Work

An extended-term solar loan is an unsecured personal loan specifically designed for financing a home solar panel system. 'Unsecured' is a key benefit: unlike a home equity loan (HELOC) or a second mortgage, the loan is not secured by your property. This simplifies the application process and means your home is never at risk.

The primary advantage is the significant reduction in your monthly payment. For a typical $40,000 solar installation, a 10-year loan might have a monthly payment over $500. By extending that same loan to a 20-year term, the payment could drop to under $400, making it much more manageable. This frees up cash in your monthly budget and can make the difference between a project being feasible or not.

The trade-off for a lower monthly payment is the total interest paid over the life of the loan. A longer term means you'll pay more in interest overall. However, for many homeowners, the immediate need for a low, predictable monthly payment outweighs the higher long-term interest cost. The goal is to align the financing with your household budget and the energy savings the system provides.

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Check rates for 15, 20, and 25-year terms in minutes.

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Your Path to Solar Financing in 4 Steps

1
Submit One Quick Form
Tell us about your project and your financial picture. It takes about two minutes and won't affect your credit score.
2
Compare Long-Term Offers
We'll present you with pre-qualified offers from lenders who provide 15, 20, and 25-year solar loans.
3
Select Your Best Option
Choose the loan term and rate that aligns with your monthly budget and long-term financial goals.
4
Receive Your Funds
Once approved, funds are typically deposited directly, allowing you to pay your installer and start your project.

15-25 Years
Flexible Loan Terms
Up to $100k
Financing Available
60 Seconds
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Comparing Loan Terms: 15 vs. 20 vs. 25 Years

Choosing the right term is a balance between the lowest possible monthly payment and the lowest total cost. There is no single 'best' answer; the right choice depends entirely on your personal financial situation and priorities. The table below illustrates how the loan term impacts both your monthly payment and the total interest you'll pay on a typical solar project.

Impact of Loan Term on a $40,000 Loan at 10% APR

Feature	15-Year Term (180 mo)	20-Year Term (240 mo)	25-Year Term (300 mo)
Estimated Monthly Payment	$429.84	$386.00	$363.46
Total Interest Paid	$37,371	$52,640	$69,038
Best For	Lowest overall cost, paying off the loan faster.	A balance between low payments and total interest.	The absolute lowest monthly payment, maximizing cash flow.

As you can see, extending the term from 15 to 25 years can reduce your monthly payment by over $65, freeing up more than $780 per year in your budget. However, this comes at the cost of higher total interest. If your primary goal is to minimize your monthly financial obligation to make the project happen, a 25-year loan is a powerful tool. If you can comfortably afford a higher payment, a 15-year term will save you a significant amount of money in the long run.

Loan amount: $15,000 – $100,000
APR: 8.99% – 29.99%
Term: 180 months – 300 months

Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The rates and terms provided are estimates and are not guaranteed.

Example scenario

The 20-year loan made our solar project possible. The payment is predictable and lower than our old electric bill, so it was a no-brainer. We couldn't have afforded it with a standard 10-year loan.

Mark T.·Homeowner, California

Who Qualifies for a Long-Term Solar Loan?

Lenders evaluate several factors to determine eligibility for extended-term financing. Because these are longer loans, lenders are looking for signs of financial stability and a strong credit history. Here are the key criteria they typically consider:

What Lenders Look For

Credit Score: Most lenders prefer a FICO score of 660 or higher for extended terms. A score above 720 will unlock the most competitive rates and options.
Verifiable Income: You'll need to show sufficient and stable income to comfortably handle the monthly loan payments, demonstrated through pay stubs or tax returns.
Debt-to-Income (DTI) Ratio: Lenders typically look for a DTI ratio below 43%, including your mortgage and the new proposed solar loan payment.
Homeownership: While the loan is unsecured, it is intended for financing residential solar installations, so you must be the property owner.
Project Viability: Lenders may want to see a signed contract or detailed quote from a reputable solar installer to verify the use of funds.

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Key Considerations Before Choosing a 25-Year Loan

A long-term loan is a significant financial commitment. Before you sign, make sure you've considered all the angles to ensure it's the right fit for your situation.

Total Interest Cost: Acknowledge the trade-off. While the monthly payment is low, a 25-year term means you will pay significantly more in interest over the life of the loan compared to a shorter term.
System Lifespan & Warranty: Ensure your solar panel and inverter warranties are robust and last as long as, or longer than, your loan term. Most Tier 1 panels have a 25-year performance warranty, which aligns perfectly.
Selling Your Home: Understand how the loan transfers. Unsecured personal loans are tied to you, not the property. If you sell your home, you are still responsible for the loan balance. Often, the increased home value from the solar system covers the loan payoff at closing.
Prepayment Penalties: Always ask if the loan has prepayment penalties. The best loans allow you to make extra payments or pay off the balance early without any fees, giving you flexibility.

Frequently Asked Questions About 20-25 Year Solar Loans

What is the longest term available for a solar loan?
While terms can vary by lender, 25-year (or 300-month) loan terms have become a common and popular option for financing residential solar projects. Some specialty lenders may offer even longer terms, but 15, 20, and 25 years are the most widely available extended options in the unsecured personal loan market.
Is a 25-year solar loan a secured loan like a mortgage?
No. The long-term solar loans offered through our partner network are unsecured personal loans. This is a critical distinction. Unlike a mortgage or a home equity line of credit (HELOC), the loan is not secured by your property. Your home is not used as collateral, which means the lender cannot place a lien on it. This results in a simpler application process and less risk for you as the homeowner.
Can I pay off a 20-year solar loan early without penalties?
In most cases, yes. The vast majority of modern personal loans, including those from our lending partners, do not have prepayment penalties. This gives you the flexibility to pay off the loan ahead of schedule if your financial situation changes, such as through a bonus, inheritance, or when you sell your home. Always confirm this detail in the loan agreement before signing.
How does a 25-year solar loan affect selling my house?
Because it's a personal loan, the debt is tied to you, not the house. When you sell your home, you are still responsible for paying off the remaining balance of the loan. Typically, the seller uses a portion of the proceeds from the home sale to pay off the solar loan in full at closing. Studies have shown that owned solar systems can increase a home's resale value, often covering the outstanding loan balance.
Why would I choose a 25-year loan if it costs more in total interest?
The primary reason is cash flow management. For many households, having a lower, predictable monthly payment is more important than the total long-term interest cost. If a 25-year loan results in a monthly payment that is less than your average electric bill, the project becomes immediately cash-flow positive. It makes an expensive home improvement project affordable within a tight monthly budget.
Can I finance a battery system with a long-term solar loan?
Absolutely. Long-term solar loans are designed to cover the total project cost. This includes not only the solar panels and inverters but also labor, installation, and energy storage systems like a Tesla Powerwall or similar home battery. Financing the entire system in one loan simplifies the process and allows you to achieve greater energy resilience from day one.

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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.

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