
Solar panels on Finance are an attractive option for home owners who want to offset their energy expenses or make a significant investment in cleaner electricity. A solar panel system can help the average home save up to $65k over its lifetime.
Solar financing comes in many forms, each with their own pros and cons. It's important to know what you need before making a decision, so that you can pick the right financing option for your situation.
Solar Panel Loans Interest-Free
Solar panel loans are available at 0% interest. Local and federal governments subsidize these loans to encourage the adoption of renewable energy. They are usually more accessible for those with lower scores of credit and don't penalize people for paying back their loans early.

You might also be able to get a loan from your home equity line of credit (HELOC), which uses the value of your home as collateral. Solar loans are not as easily obtained as personal loans, but they can reduce borrowing costs and lock in low rates.
Buying Outright
If you have a large amount of cash to spare, purchasing a solar panel system outright is probably the most cost-effective way to go. This is because your locality may offer tax incentives or rebates.
Leases & PPAs
The most popular solar panel financing option is the Power Purchase Agreement (PPA). These agreements typically offer a fixed rate for electricity generated by solar panels over a 25-year period, which is 10-30% below the price you would pay for it at your utility. Prices can fluctuate year-to-year, and this is not an absolute deal.
The federal solar investment credit is not available to those who lease or PPA solar panels. They can also lead to problems when you're planning to sell your home and need to move your leased solar panel system to another property.

Solar Loans
There are a number of options to finance your solar system. This includes loans from third parties, credit cards, and banks. Attention should be paid to your annual percentage rates (APR), the origination fee, and your loan's terms. You should compare prices to get the best deal.
Residential Solar Financing
Solar loans are one of the most popular methods to finance solar systems. This option is offered by most banks or credit unions. It allows you to borrow money without making any initial investment. You'll likely need to apply for a personal loan, but this can be an easier process than applying for a traditional home equity loan or HELOC.