Can I get a solar loan if I just bought my house?

Absolutely. This is one of the most common reasons homeowners seek an unsecured solar loan. Since your eligibility is based on your personal financial profile (income, credit score) rather than your home's equity, being a new homeowner is not a barrier. It's an excellent way to start saving on electricity costs from day one.

Is an unsecured solar loan the same as a personal loan?

Yes, essentially. An 'unsecured solar loan' is a personal loan that is marketed and used for the specific purpose of funding a solar panel installation. The underlying financial product is the same: an installment loan with a fixed interest rate and term that is not secured by any collateral.

Will this loan put a lien on my house?

No. The defining feature of an unsecured loan is that it does not place a lien on any of your assets, including your home. This is the primary advantage over a HELOC or other secured home improvement loans.

How much can I borrow for solar panels without using home equity?

Loan amounts typically range from $5,000 to $50,000, which covers the vast majority of residential solar projects. The maximum amount you can borrow will depend on your income, creditworthiness, and the policies of the specific lender.

Are the interest rates higher for unsecured solar loans than for HELOCs?

Generally, yes. Because the lender is taking on more risk with an unsecured loan, the interest rates are often higher than those for a secured loan like a HELOC. However, personal loan rates are fixed, meaning your payment will never change, whereas many HELOCs have variable rates that can increase over time.

Can I still get the federal solar tax credit if I use an unsecured loan?

Yes. Your eligibility for the federal Solar Investment Tax Credit (ITC) and any state or local incentives is based on you owning the solar energy system, not on how you financed it. Using a loan to purchase the system makes you the owner, so you are eligible for the credits (assuming you meet all other IRS requirements).

What happens if I sell my house after getting an unsecured solar loan?

The loan is a personal obligation tied to you, not the property. If you sell your home, the loan remains your responsibility to pay off. However, since solar panels often increase a home's value, you may be able to factor that into your sale price, effectively using a portion of the proceeds to pay off the remaining loan balance.

Unsecured Solar Loans with No Home Equity

For homeowners who just bought their house or have low equity and want to finance solar panels without putting a lien on their property.

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Want to Go Solar, But Don't Have the Home Equity?

You just bought your house, so you have little to no equity built up.
Our lending partners offer unsecured loans based on your creditworthiness, not your home's equity.
You don't want to put a lien on your property with a HELOC or second mortgage.
A personal loan for solar is unsecured, meaning your home is never used as collateral.
Traditional home improvement loans from your bank all require tapping into equity.
We provide a direct path to financing that bypasses equity requirements completely.
As a new homeowner, the high upfront cost of a solar installation feels out of reach.
Financing breaks the cost into predictable monthly payments that fit your budget.

Finance Your Solar Panels the Smart Way—Without Touching Your Equity

For many homeowners, especially those who have recently purchased their property, the dream of installing solar panels seems financially blocked. The most common advice is to use a Home Equity Line of Credit (HELOC), but what if you have little to no equity? This is a common situation for new homeowners. The good news is that you don't need equity to finance a solar energy system. An unsecured personal loan, sometimes called a 'solar loan with no lien,' provides a powerful alternative.

This type of financing allows you to borrow the full amount needed for your solar project based on your credit history and income, not the value of your home. It means a faster funding process, a fixed interest rate with predictable monthly payments, and most importantly, no lien on your house. It’s a clean, straightforward way to invest in renewable energy and lower your electricity bills without putting your property on the line.

What Exactly is an Unsecured Solar Loan?

An unsecured solar loan is a type of personal loan specifically used to finance the purchase and installation of a residential solar panel system. The key word here is 'unsecured.' Unlike a HELOC or a traditional home improvement loan, it doesn't require you to use your home as collateral. Approval is based on personal financial factors like your credit score, income, and debt-to-income ratio.

This makes it the ideal solution for financing solar without home equity. If you're a new homeowner, you can get your solar project started right away instead of waiting years to build sufficient equity. Even if you do have equity, you might prefer an unsecured loan to keep your home's equity available for other future needs or to simply avoid the complexity and paperwork of a second mortgage. With a fixed rate and term, you'll know exactly what your payment is each month, making it easy to budget around your new, lower electric bill.

Get Your Solar Funding in 3 Simple Steps

1
Check Your Rate Online
Fill out our simple form in about two minutes. This is a 'soft pull' that will not affect your credit score.
2
Review Your Loan Offers
If you pre-qualify, you'll see personalized loan offers from our network of lenders. Compare APRs, terms, and monthly payments.
3
Get Funded and Go Solar
Once you select an offer and are fully approved, funds are typically deposited directly into your account within 1-3 business days.

See Your Personalized Solar Loan Rates

It takes just a few minutes and won't affect your credit score.

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Estimating the Cost of Your No-Equity Solar Loan

The total cost of a solar installation can range from $15,000 to over $50,000, depending on the size of your system, your location, and the equipment you choose. An unsecured personal loan can cover 100% of these costs, including panels, inverters, batteries, installation labor, and any necessary permits. Below is an example breakdown to help you visualize how the financing might work for a typical project.

Example Solar Project Financing

10kW Solar Panel System

Equipment & hardware

$25,000

Installation & Labor

Professional setup

$5,000

Permits & Fees

Local requirements

$1,500

Estimated monthly

$525/mo

Based on a 7-year loan at 11% APR. Your actual rate will vary.

Loan amount: $5,000 – $50,000
APR: 8.99% – 35.99%
Term: 36 mo – 84 mo

The APR you receive will depend on your credit score, loan amount, term, and credit usage and history. The ranges above represent typical offerings from our lending partners. Not all applicants will qualify for the lowest rates.

Unsecured Solar Loans vs. HELOCs for New Homeowners

For a homeowner with little or no equity, the choice is often clear. However, understanding the fundamental differences between an unsecured personal loan and a HELOC is crucial for making an informed decision. The primary distinction lies in whether the loan is secured by your property. This single difference has significant implications for risk, speed, and accessibility.

Comparing Your Solar Financing Options

Feature	Unsecured Personal Loan	HELOC (Home Equity Line of Credit)
Requires Home Equity?	No, Not Required	Yes, Significant Equity Needed
Lien on Your Home?	No	Yes, a second mortgage
Funding Speed	Fast (1-3 days)	Slower (weeks to months)
Interest Rate Type	Fixed Rate	Often Variable
Best For	New homeowners, those with low equity, or anyone wanting a fast, simple loan without a lien.	Established homeowners with substantial equity who are comfortable with a variable rate and a lien on their property.

Made Your Decision? Get Started Now.

Find out if an unsecured solar loan is the right fit for your project.

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Eligibility for a No-Equity Solar Loan

Lenders assess several factors to determine your eligibility for an unsecured loan. Because your house isn't on the line, they focus closely on your personal financial health. If your profile is borderline, focusing on improving your debt-to-income ratio by paying down small credit card balances can make a significant difference before you apply.

What Lenders Typically Look For

Credit Score: Most lending partners look for a score of 640 or higher, but options may exist for scores down to 600 depending on other factors.
Verifiable Income: You'll need to show a steady, reliable source of income from employment, self-employment, or other verifiable sources.
Debt-to-Income (DTI) Ratio: Lenders prefer a DTI ratio below 40%, including your mortgage and the new potential loan payment.
Credit History: A history of on-time payments and responsible credit management will strengthen your application.

Tips for a Smooth Solar Loan Application

Get Quotes First: Before applying for a loan, get at least two to three detailed quotes from reputable solar installers. This ensures you know the exact amount you need to borrow.
Check Your Credit Report: Review your credit report for any errors before you apply. Correcting inaccuracies can improve your score and help you qualify for better rates.
Factor in the Federal Tax Credit: Understand how the Solar Investment Tax Credit (ITC) works. You could potentially use the tax refund to make a large principal payment on your loan, reducing your total interest paid.
Avoid Origination Fees: Some personal loans come with origination fees, which are deducted from your loan proceeds. Look for offers with zero origination fees to maximize your funding.

Ready to apply what you've learned?

Find out what you qualify for in minutes.

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Frequently Asked Questions About No-Equity Solar Loans

Can I get a solar loan if I just bought my house?
Absolutely. This is one of the most common reasons homeowners seek an unsecured solar loan. Since your eligibility is based on your personal financial profile (income, credit score) rather than your home's equity, being a new homeowner is not a barrier. It's an excellent way to start saving on electricity costs from day one.
Is an unsecured solar loan the same as a personal loan?
Yes, essentially. An 'unsecured solar loan' is a personal loan that is marketed and used for the specific purpose of funding a solar panel installation. The underlying financial product is the same: an installment loan with a fixed interest rate and term that is not secured by any collateral.
Will this loan put a lien on my house?
No. The defining feature of an unsecured loan is that it does not place a lien on any of your assets, including your home. This is the primary advantage over a HELOC or other secured home improvement loans.
How much can I borrow for solar panels without using home equity?
Loan amounts typically range from $5,000 to $50,000, which covers the vast majority of residential solar projects. The maximum amount you can borrow will depend on your income, creditworthiness, and the policies of the specific lender.
Are the interest rates higher for unsecured solar loans than for HELOCs?
Generally, yes. Because the lender is taking on more risk with an unsecured loan, the interest rates are often higher than those for a secured loan like a HELOC. However, personal loan rates are fixed, meaning your payment will never change, whereas many HELOCs have variable rates that can increase over time.
Can I still get the federal solar tax credit if I use an unsecured loan?
Yes. Your eligibility for the federal Solar Investment Tax Credit (ITC) and any state or local incentives is based on you owning the solar energy system, not on how you financed it. Using a loan to purchase the system makes you the owner, so you are eligible for the credits (assuming you meet all other IRS requirements).
What happens if I sell my house after getting an unsecured solar loan?
The loan is a personal obligation tied to you, not the property. If you sell your home, the loan remains your responsibility to pay off. However, since solar panels often increase a home's value, you may be able to factor that into your sale price, effectively using a portion of the proceeds to pay off the remaining loan balance.

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.