Can you refinance a solar panel loan?

Yes, absolutely. Most solar loans are functionally installment loans and can be paid off at any time. You can use a new, lower-interest personal loan to pay off the balance of your existing solar loan. This is a common financial strategy for homeowners who want to take advantage of better interest rates or improve their monthly cash flow.

What's the process for refinancing a GoodLeap or NYSERDA solar loan?

The process is the same regardless of your original lender. First, you'll need to request a '10-day payoff statement' from your current loan servicer (whether it's GoodLeap, Energy Loan Network for a NYSERDA loan, or another provider). This document shows the exact amount needed to close the account. When you're approved for your new personal loan, you'll use the funds to send this exact payoff amount to the old lender, which officially closes that loan.

Will refinancing my solar loan affect my solar tax credit?

No, it will not. The Federal Solar Investment Tax Credit (ITC) is based on the purchase and installation of the solar system, not the financing. As long as you own the system (as opposed to leasing it), you are eligible for the credit. Since refinancing is just swapping one loan for another to pay for the system you already own, it has no impact on your past or future eligibility for the tax credit.

Does refinancing hurt my credit score?

There are two minor, temporary impacts. Checking your rate with our platform results in a 'soft inquiry,' which does not affect your score. When you choose a lender and finalize your application, they will perform a 'hard inquiry,' which can temporarily dip your score by a few points. Opening a new loan will also slightly lower your average age of accounts. However, by consistently making on-time payments on the new loan, your score will typically recover and even improve over time.

How soon can I refinance my solar loan?

Most lenders do not have a waiting period. You can technically refinance as soon as the original loan is active. However, it's most beneficial to wait for a catalyst, such as a significant improvement in your credit score (e.g., 6-12 months of on-time payments) or a drop in market interest rates. Check your original loan documents for any clauses about early payment or prepayment penalties, as this is the most common constraint.

What documents do I need to refinance my solar loan?

The process is streamlined, but you should have a few things handy. You'll typically need proof of income (like pay stubs or tax returns), a government-issued ID, and your most recent loan statement from your current solar lender. The most important document will be the final payoff statement from that lender, which you'll need to get before the new loan is funded.

Refinance Your Solar Loan

For homeowners looking to replace their current solar financing with a new loan that offers a lower interest rate or a more manageable monthly payment.

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Your solar panels are saving you money on electricity, but is your solar loan doing the same? If you secured financing when interest rates were higher, or if your financial situation has improved, you might be overpaying. Refinancing your solar loan with a new personal loan can be a smart financial move, unlocking lower monthly payments, a better interest rate, or both.

Is Your Current Solar Loan Holding You Back?

My original interest rate feels too high compared to today's rates.
We connect you with lenders offering competitive fixed-rate personal loans that can replace your expensive financing.
The monthly payment is straining my budget.
A new loan with a lower rate or a different term can significantly reduce your monthly payment, freeing up cash flow.
My credit score has improved since I installed my panels.
A higher credit score can qualify you for much better interest rates than you were originally offered.
I have a loan from a specific provider like GoodLeap or a state program like NYSERDA and I'm not sure if I can refinance.
Most solar loans, including those from major installers and state-backed programs, can be refinanced with a straightforward personal loan.

When Does it Make Sense to Refinance a Solar Loan?

Deciding to refinance your solar loan is about timing and opportunity. The goal is to put yourself in a better financial position than you are with your current loan. Several scenarios create a perfect window to explore a solar loan refinance. If you find yourself in one or more of these situations, it's likely worth the few minutes it takes to check your potential new rates.

Interest rates have dropped. If general market interest rates have fallen since you took out your original loan, you may be able to lock in a significantly lower APR.
Your credit score has improved. A jump of 50 points or more in your credit score can move you into a new credit tier, making you eligible for the most competitive rates from lenders.
You want to lower your monthly payments. Even a small rate reduction can lower your payment. Alternatively, you could choose a new loan with a longer repayment term to achieve a much lower, more manageable monthly bill.
You want to pay off your loan faster. If your income has increased, you might refinance to a shorter term. Your monthly payment may stay the same or even increase slightly, but you'll pay significantly less in total interest and own your system outright sooner.

How to Refinance Your Solar Loan in 4 Steps

1
Check Your Rate
Fill out our simple online form in about two minutes. This is a 'soft pull' that will not affect your credit score.
2
Compare Your Offers
If you pre-qualify, you'll see real APRs, terms, and monthly payment options from our network of lenders.
3
Select Your Loan & Finalize
Choose the best offer for your goals. You'll complete the final application with the lender, which may involve a 'hard pull' on your credit.
4
Pay Off Your Old Loan
Once approved, the funds are typically deposited directly into your bank account. You then use these funds to pay off your original solar loan provider.

Calculating Your Potential Savings

The primary motivation for refinancing is financial savings. To understand the impact, you need to look at both the monthly payment and the total interest paid over the life of the loan. Let's look at a common scenario for a homeowner who took out a solar loan a few years ago and has since improved their credit.

Example: Refinancing a $25,000 Solar Loan

Original Loan (10-year term @ 9.99% APR) Original Monthly Payment	$330
New Refinance Loan (7-year term @ 7.49% APR) New Monthly Payment	$383
Difference in Payoff Time Pays off 3 years sooner
Total Interest Savings Approximate savings over loan life	~$4,200

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Personal Loan vs. Other Refinancing Options

While an unsecured personal loan is the most common and straightforward way to refinance a solar loan, some homeowners consider using their home's equity. Each option has distinct advantages and disadvantages. A personal loan is typically faster and doesn't put your home at risk, making it a popular choice for refinancing solar debt.

Comparing Solar Refinancing Methods

	Personal Loan	Home Equity Loan / HELOC	Cash-Out Mortgage Refi
Collateral	None (unsecured)	Your home	Your home
Application Speed	Fast (1-3 days)	Slower (weeks)	Slowest (30-60 days)
Complexity	Simple online application	Appraisal and paperwork	Full mortgage process
Typical APR	Fixed, 8-35.99%	Variable or fixed, often lower	Variable or fixed, lowest rates

Loan amount: $15,000 – $60,000
APR: 7.99% – 35.99%
Term: 36 mo – 84 mo

Your actual Annual Percentage Rate (APR) will depend on your credit score, loan amount, loan term, and credit history. All loans are subject to lender approval.

Eligibility for a Solar Refinance Loan

What Lenders Typically Look For

Credit Score: A score of 640 or higher is generally recommended to qualify for competitive rates. Some partners may consider scores as low as 580.
Verifiable Income: Lenders need to see that you have a steady source of income to comfortably handle the new monthly payments.
Debt-to-Income (DTI) Ratio: Your total monthly debt payments (including your new loan) should ideally be less than 40-50% of your gross monthly income.
Existing Loan Information: You will need to provide the payoff amount for your current solar loan from your existing lender (e.g., GoodLeap, Mosaic, Dividend, or NYSERDA's loan servicer).
Credit History: A history of on-time payments and responsible credit use will strengthen your application.

If you are on the borderline, you can strengthen your application by paying down other debts to lower your DTI ratio or by ensuring your credit report is accurate and free of errors before you apply.

Find Out if You Qualify in Minutes

See your personalized options without any commitment or impact to your credit score.

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Common Pitfalls to Avoid

Refinancing can be a powerful tool, but navigating the process requires care. Being aware of these common mistakes can help you ensure you get the best possible outcome and avoid any unwelcome surprises.

Ignoring Prepayment Penalties: Before you apply, check with your current solar lender to see if they charge a penalty for paying off the loan early. You'll need to factor this cost into your calculations to see if refinancing still saves you money.
Focusing Only on the Monthly Payment: A lower payment is great, but if it comes from a much longer loan term, you could end up paying more in total interest. Always compare the total cost of the loan (APR x term).
Not Shopping Around: Accepting the first offer you receive is a common mistake. By comparing rates from multiple lenders, you ensure you're getting the most competitive deal available for your credit profile.
Forgetting Origination Fees: Some personal loans come with an origination fee, which is a percentage of the loan amount deducted from the funds you receive. Be sure to factor this into the total loan cost when comparing offers.

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Frequently Asked Questions About Solar Loan Refinancing

Can you refinance a solar panel loan?
Yes, absolutely. Most solar loans are functionally installment loans and can be paid off at any time. You can use a new, lower-interest personal loan to pay off the balance of your existing solar loan. This is a common financial strategy for homeowners who want to take advantage of better interest rates or improve their monthly cash flow.
What's the process for refinancing a GoodLeap or NYSERDA solar loan?
The process is the same regardless of your original lender. First, you'll need to request a '10-day payoff statement' from your current loan servicer (whether it's GoodLeap, Energy Loan Network for a NYSERDA loan, or another provider). This document shows the exact amount needed to close the account. When you're approved for your new personal loan, you'll use the funds to send this exact payoff amount to the old lender, which officially closes that loan.
Will refinancing my solar loan affect my solar tax credit?
No, it will not. The Federal Solar Investment Tax Credit (ITC) is based on the purchase and installation of the solar system, not the financing. As long as you own the system (as opposed to leasing it), you are eligible for the credit. Since refinancing is just swapping one loan for another to pay for the system you already own, it has no impact on your past or future eligibility for the tax credit.
Does refinancing hurt my credit score?
There are two minor, temporary impacts. Checking your rate with our platform results in a 'soft inquiry,' which does not affect your score. When you choose a lender and finalize your application, they will perform a 'hard inquiry,' which can temporarily dip your score by a few points. Opening a new loan will also slightly lower your average age of accounts. However, by consistently making on-time payments on the new loan, your score will typically recover and even improve over time.
How soon can I refinance my solar loan?
Most lenders do not have a waiting period. You can technically refinance as soon as the original loan is active. However, it's most beneficial to wait for a catalyst, such as a significant improvement in your credit score (e.g., 6-12 months of on-time payments) or a drop in market interest rates. Check your original loan documents for any clauses about early payment or prepayment penalties, as this is the most common constraint.
What documents do I need to refinance my solar loan?
The process is streamlined, but you should have a few things handy. You'll typically need proof of income (like pay stubs or tax returns), a government-issued ID, and your most recent loan statement from your current solar lender. The most important document will be the final payoff statement from that lender, which you'll need to get before the new loan is funded.

Ready to see your new rate?

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.

Lower Your Solar Loan Payment Today

Compare personalized loan offers to refinance your solar system in just a few minutes. Checking your rates is free and won't affect your credit score.

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