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Solar financing: loans, 0% APR promotions and what they really cost
Solar panels are financed most often with a dedicated solar loan of 5.99%–24.99% APR over 10–25 years, or with a promotional 0% APR offer that is typically paid for through a dealer fee built into the system price. Comparing multiple lenders exposes that fee: a lower cash price at 8% APR frequently beats an inflated price at 0%.
How solar financing works
Solar is the largest single home improvement most people finance, commonly $18,000–$40,000 before incentives. Because the system produces measurable savings, lenders offer longer terms (up to 25 years) than for any other project type. The 30% federal tax credit applies to the total system cost regardless of how it is financed.
The truth about 0% APR solar offers
A true 0% loan does not exist from the lender's perspective. Promotional rates are funded by a dealer fee — often 15%–30% of system price — that installers add to the cash price. Ask every installer for the cash price and the financed price; the difference is your real cost of credit.
Loan types on our platform
- Unsecured solar loans — fixed payment, no lien, 10–25 year terms.
- Re-amortizing loans — payment drops after you apply the tax credit in month 12–18.
- Same-as-cash promotions — 12–18 months to pay in full before interest applies.
Solar financing example
A $28,000 system at 7.49% APR over 20 years is about $226 per month. If the system offsets a $190 electric bill, the net monthly cost is roughly $36 until payoff, after which the electricity is free.
Rates, terms and eligibility
APR ranges shown are representative across our participating lenders as of our most recent quarterly review and vary by lender, credit profile, loan amount, term and state. Lattice Lending is not a lender and does not make credit decisions. Comparing offers uses a soft credit pull that does not affect your credit score.
Representative rates and terms
| Representative APR | 5.99%–24.99% |
|---|---|
| Terms | 60–300 months |
| Loan amounts | $10000–$100000 |
Solar financing questions
Is a solar loan or lease better?
A loan lets you own the system and claim the 30% federal tax credit; a lease or PPA gives the credit to the provider. For homeowners with tax liability and plans to stay 5+ years, a loan usually delivers more savings.
What credit score is needed for a solar loan?
Most solar lenders in our network require roughly 640 or higher for standard pricing, with the best rates above 720. A few lenders serve scores from 600 with higher APRs.
Can I include a battery in solar financing?
Yes. Batteries, panel upgrades and EV chargers installed with the system are typically financed in the same loan and qualify for the same federal credit.