What is the minimum credit score I need for a solar loan?

While requirements vary by lender, most partners in our network look for a minimum credit score of around 600. However, a score between 620 and 670 will significantly increase your chances of approval and give you access to more competitive interest rates. Lenders also consider other factors like your income and debt-to-income ratio, so a strong application in other areas can help if your score is on the lower end of the fair range.

Will applying for a solar loan hurt my credit score?

Checking your rates on our platform is considered a 'soft' credit inquiry, which does not impact your credit score. You can see potential offers and terms without any negative effect. Only when you choose a specific loan offer and proceed with a full application with that lender will a 'hard' credit inquiry be performed, which may have a small, temporary impact on your score.

Are interest rates for solar loans higher if I have fair credit?

Generally, interest rates are correlated with credit risk. Borrowers with higher credit scores typically receive lower interest rates. Therefore, a borrower with a fair credit score can expect a higher APR than someone with an excellent score. However, the rates offered by lenders specializing in fair credit are often much more competitive than other options like high-interest credit cards. The goal is to secure a fixed monthly payment that makes financial sense for your budget and is offset by your electricity savings.

Can I include the cost of a home battery in my solar loan?

Yes, absolutely. A personal loan for solar is flexible. You can finance the total cost of your project, which can include the solar panels, inverters, racking, installation labor, and energy storage solutions like a home battery. This allows you to create a comprehensive system for energy independence and backup power, all under a single loan with one monthly payment.

What happens if I sell my house with a solar loan?

Since an unsecured personal loan is tied to you, not your property, the loan remains your responsibility when you sell your home. However, homes with owned solar panel systems often sell for a premium. Many homeowners use a portion of the proceeds from the home sale to pay off the remaining balance of their solar loan. Unlike a solar lease, which can sometimes complicate a home sale, an owned system is an asset that can increase your property value.

Can I get a solar loan if I'm self-employed and have fair credit?

Yes, it is possible. If you are self-employed, lenders will want to see proof of stable and sufficient income, just as they would for a traditionally employed applicant. You will typically be asked to provide recent tax returns (usually the last two years) and bank statements to verify your income. As long as your income is consistent and your DTI ratio is within the lender's guidelines, being self-employed should not prevent you from qualifying for a solar loan with fair credit.

Solar Loans for Fair Credit Scores

Finance your residential solar panel system with a personal loan, even if you have a fair or average credit score between 600 and 670.

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Having a fair or average credit score can feel like being stuck in the middle. You're working hard to build your financial health, but you might not qualify for the rock-bottom interest rates you see advertised. When it comes to a major investment like solar panels, this can be especially frustrating. Many homeowners assume that a credit score in the 600s puts affordable solar financing out of reach. The good news is that this isn't the case. A growing number of lenders specialize in providing unsecured personal loans to individuals with mid-range credit, making it possible to fund your solar project and start saving on your energy bills sooner than you think.

Fair Credit Shouldn't Mean No Solar

Traditional solar installers quoted you an impossibly high interest rate or rejected your application outright.
We connect you with a network of lenders who understand and work with applicants in the fair credit range.
You feel your only option is a solar lease or PPA, where you don't actually own the system or get the full tax benefits.
A personal loan allows you to purchase your system outright, maximizing your return on investment through ownership and tax credits.
You're worried that applying for financing will hurt the credit score you're trying so hard to improve.
You can check your rates through our platform with a soft credit pull, which has no impact on your credit score.
The financing process seems complicated and you're unsure where to even begin with an average credit profile.
Our streamlined process makes it easy to compare personalized loan offers from multiple lenders in one place.

How Solar Loans Work for Borrowers with Average Credit

A solar loan is a type of personal loan used specifically to cover the costs of a residential solar energy system, including panels, inverters, batteries, and installation. Unlike a secured loan, such as a home equity line of credit (HELOC), a personal loan for solar is typically unsecured. This means you don't have to use your home as collateral, which can be a significant advantage. For borrowers with fair credit, an unsecured personal loan is often one of the most accessible financing routes.

Lenders who cater to the fair credit market look beyond just the three-digit score. While your FICO score (typically between 600 and 670 for this category) is a key factor, they also place significant weight on other indicators of financial stability. These include your debt-to-income (DTI) ratio, your recent payment history, and the stability of your income. By demonstrating reliability in these areas, you can significantly improve your chances of getting approved for a solar loan with a competitive interest rate, even without a perfect credit history.

Your Path to Solar Financing in 3 Steps

1
Complete Our Simple Form
Tell us about your solar project and provide some basic financial information. This takes about two minutes and won't affect your credit score.
2
Compare Your Loan Offers
If you pre-qualify, you'll see personalized offers from our network of lenders. Compare APRs, monthly payments, and loan terms side-by-side.
3
Get Funded and Go Solar
Once you select an offer and are fully approved, funds are typically deposited directly into your account. You can then pay your installer and start your project.

See What Your Monthly Payment Could Be

Get a clear estimate of your solar loan costs in minutes, with no obligation and no impact on your credit score.

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Breaking Down the Cost of a Solar Loan

The cost of a residential solar installation can vary widely based on your location, system size, and equipment quality, but most systems fall in the $20,000 to $50,000 range. A personal loan allows you to finance the entire project cost, turning a large upfront expense into manageable monthly payments. Understanding how these payments are calculated is key to making an informed decision.

Example: Financing a $30,000 Solar System with Fair Credit

Total System & Installation Cost

Covers panels, inverter, racking, labor

$30,000

Federal Solar Tax Credit (30%)

Reduces your tax liability

-$9,000

Net System Cost

Your effective cost after tax credit

$21,000

Estimated monthly

$573/mo

Based on a $30,000 loan over 7 years at 14.99% APR. Your actual rate will vary.

Remember, the goal is for your new monthly loan payment to be less than or equal to your old average electricity bill, leading to immediate or near-term savings. The Federal Solar Investment Tax Credit (ITC) is also a crucial part of the equation. While you'll finance the full system cost upfront, the 30% tax credit can significantly reduce your net cost when you file your taxes, which you could then use to pay down a portion of your loan principal.

Loan amount: $20,000 – $50,000
APR: 11.99% – 35.99%
Term: 36 mo – 84 mo

APRs and loan terms vary based on your individual credit profile, income, debt-to-income ratio, and the lender. The rates shown are representative of options available to borrowers with fair credit scores. Not all borrowers will qualify for the lowest rates.

Personal Loans vs. Other Solar Financing Options

When you have fair credit, it's important to evaluate all your options. While a personal loan offers many benefits, it's helpful to see how it stacks up against alternatives like solar leases/PPAs or home equity loans.

Comparing Solar Financing for Homeowners with Fair Credit

	Unsecured Personal Loan	Solar Lease / PPA	HELOC
Ownership	You own the system	A third-party owns it	You own the system
Tax Credits	You keep them	The owner keeps them	You keep them
Credit Requirement	Fair to Excellent (600+)	Good to Excellent (650+)	Good to Excellent (680+)
Collateral	None	None	Your home
Best For	Maximizing ROI and building equity without using your home as collateral.	Low upfront cost when you don't qualify for a loan.	Homeowners with significant equity and excellent credit seeking the lowest rates.

Find Out What You Qualify For

Discover your personal loan options without commitment.

See My Options

Improving Your Approval Odds with a 600-670 Credit Score

While our lending partners work with fair credit applicants, taking a few steps before you apply can help you secure the best possible terms. Think of your application as a complete financial picture, not just a credit score. Strengthening the other parts of that picture can make a big difference.

What Lenders Look For

Credit Score: A score of 600 or higher is generally required. A score closer to 670 will open up more options with better rates.
Stable, Verifiable Income: Lenders need to see that you have a consistent source of income sufficient to cover the new loan payment. Pay stubs, tax returns, or bank statements are standard.
Debt-to-Income (DTI) Ratio: Your DTI is your total monthly debt payments divided by your gross monthly income. Most lenders prefer a DTI below 45%.
Positive Payment History: A recent history of on-time payments, especially on other installment loans or mortgages, can offset a lower credit score.
Low Credit Utilization: If you have credit cards, keeping your balances below 30% of your total credit limit can positively impact your score and application.

Example scenario

My credit was just 'average' and the first couple of solar companies I called couldn't help me. I thought I was out of luck. Finding a personal loan option that looked at my whole financial picture was a game-changer. Our system is installed and we're already seeing lower bills.

David M.·Homeowner in Florida

Ready to Compare Your Options?

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Frequently Asked Questions About Solar Loans for Fair Credit

What is the minimum credit score I need for a solar loan?
While requirements vary by lender, most partners in our network look for a minimum credit score of around 600. However, a score between 620 and 670 will significantly increase your chances of approval and give you access to more competitive interest rates. Lenders also consider other factors like your income and debt-to-income ratio, so a strong application in other areas can help if your score is on the lower end of the fair range.
Will applying for a solar loan hurt my credit score?
Checking your rates on our platform is considered a 'soft' credit inquiry, which does not impact your credit score. You can see potential offers and terms without any negative effect. Only when you choose a specific loan offer and proceed with a full application with that lender will a 'hard' credit inquiry be performed, which may have a small, temporary impact on your score.
Are interest rates for solar loans higher if I have fair credit?
Generally, interest rates are correlated with credit risk. Borrowers with higher credit scores typically receive lower interest rates. Therefore, a borrower with a fair credit score can expect a higher APR than someone with an excellent score. However, the rates offered by lenders specializing in fair credit are often much more competitive than other options like high-interest credit cards. The goal is to secure a fixed monthly payment that makes financial sense for your budget and is offset by your electricity savings.
Can I include the cost of a home battery in my solar loan?
Yes, absolutely. A personal loan for solar is flexible. You can finance the total cost of your project, which can include the solar panels, inverters, racking, installation labor, and energy storage solutions like a home battery. This allows you to create a comprehensive system for energy independence and backup power, all under a single loan with one monthly payment.
What happens if I sell my house with a solar loan?
Since an unsecured personal loan is tied to you, not your property, the loan remains your responsibility when you sell your home. However, homes with owned solar panel systems often sell for a premium. Many homeowners use a portion of the proceeds from the home sale to pay off the remaining balance of their solar loan. Unlike a solar lease, which can sometimes complicate a home sale, an owned system is an asset that can increase your property value.
Can I get a solar loan if I'm self-employed and have fair credit?
Yes, it is possible. If you are self-employed, lenders will want to see proof of stable and sufficient income, just as they would for a traditionally employed applicant. You will typically be asked to provide recent tax returns (usually the last two years) and bank statements to verify your income. As long as your income is consistent and your DTI ratio is within the lender's guidelines, being self-employed should not prevent you from qualifying for a solar loan with fair credit.

Take Control of Your Energy Future

An average credit score doesn't have to be a roadblock on your path to solar ownership. By exploring personal loan options designed for borrowers like you, you can take a significant step towards reducing your carbon footprint and lowering your monthly energy bills. The journey begins with understanding your options.

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.