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Smart Solar Financing

Financing your solar project is a crucial step towards taking control of your energy future. But which financing option is right for you? Finding the right solution keeps your savings intact while maximizing solar energy production.

Why Finance Your Solar?

Don’t let costs get in the way of pursuing your solar project. There are several benefits that make solar financing a smart choice for homeowners seeking cleaner and more affordable energy sources.

Why Finance Your Solar?
Lower Upfront Costs

Lower Upfront Costs

Solar financing eliminates the need for a large upfront payment. This makes it easier to invest in solar energy without the immediate financial burden of a full cash purchase.
Immediate Cost Savings

Immediate Cost Savings

Start saving on energy costs right from the beginning. Offsetting your monthly loan payments enables a faster return on your investment as you generate electricity.
Increased Property Value

increased property value

Adding solar panels can boost your property's worth. Research shows that homes with solar panels sell faster and at higher resale values than homes without solar panels.

Solar Financing Options

There are two primary financing options for your solar journey: Home Equity Lines of Credit (HELOCs) and unsecured loans, each with unique benefits and considerations. The following information will assist you in making an informed choice that aligns with your financial goals.

What is a Home Equity Line of Credit (HELOC)?

What is a Home Equity Line of Credit (HELOC)?

A HELOC allows you to leverage the equity in your home to fund your solar installation. It's a flexible line of credit that usually comes with competitive interest rates and extended repayment terms. By tapping into your home's equity, you can secure the financial support needed to start your solar journey, all while enjoying the advantages of solar energy.

Pros:
  • Lower Interest Rates: HELOCs typically offer lower interest rates compared to unsecured loans because they are secured by your home's equity.
  • Tax Benefits: The interest paid on a HELOC is tax-deductible, potentially saving you money come tax season.
  • Higher Borrowing Limits: HELOCs often allow you to borrow more money than unsecured loans, making it easier to finance larger solar and battery projects.
  • Flexible Repayment Terms: You can pay back your HELOC over an extended period (up to 30 years), reducing monthly payments.
Cons:
  • Risk to Your Home: Since a HELOC is secured by your home, failure to repay could lead to foreclosure, putting your home at risk.
Figure Home Equity Line

Get Your HELOC With Figure

We are proud to announce our partnership with Figure, a leading financial institution specializing in HELOC solutions. With Figure as our trusted partner, we can offer you competitive and reliable HELOC options to help you finance your solar and battery project seamlessly.

  • Apply online with our quick and easy application
  • Receive funding in as little as 5 days
  • Borrow up to $400,000 by leveraging your home equity
  • Skip the wait for an in-person appraisal
  • Get the funds you need now and proceed with your project.

Apply Now

What are unsecured loans?

What are unsecured loans?

Unsecured loans don’t require collateral (such as your home) to back the loan. These loans offer flexibility and quick access to funds for your solar project without risking your property. By choosing an unsecured loan, you can finance your solar installation with ease and confidence, knowing that your home remains separate from the loan arrangement.

Pros:
  • No Collateral Required: You don't need to use your home as collateral, eliminating the risk of losing your property in case of non-payment.
  • Simplified Application: Unsecured loans often have a straightforward application process with fewer documentation requirements.
  • Faster Approval: You can get approved for an unsecured loan the same day, allowing you to start your solar and battery project sooner.
Cons:
  • Higher Interest Rates: Unsecured loans typically come with higher interest rates than HELOCs because they are not secured by collateral.
  • Limited Borrowing Amounts: You can only borrow up to $100,000, which could limit the size and scope of your solar and battery project if you are installing a very large system.
  • Shorter Repayment Terms: Unsecured loans may have shorter repayment terms, resulting in higher monthly payments.
LightStream

Get an Unsecured Loan With LightStream

We've partnered with LightStream, a respected financial institution specializing in unsecured loans. Through our collaboration with LightStream, we are delighted to offer you convenient and flexible unsecured loan options to support your solar and battery project with ease.

  • Whole-project funding, with no fees and no home equity requirements
  • Unsecured LightStream loans have no fees or prepayment penalties
  • No home appraisals required
  • Fund your loan as soon as soon as the day you apply
  • Loans from $5,000 to $100,000.

Apply Now

HELOC Vs. Unsecured Loan: Which One Is Right for You?

Choosing between a HELOC and an unsecured loan depends on your financial situation, risk tolerance, and credit worthiness. If you have significant home equity, are comfortable with the risk, and want lower interest rates, a HELOC may be the way to go. However, if you prefer a quicker, simpler process with no risk to your home, an unsecured loan might be your best choice.

Carefully consider these factors to select the option that best fits your needs for financing your solar installation.

HELOC for Solar Unsecured Loan for Solar
Collateral Requirement Requires home equity as collateral. No collateral required; home not at risk.
Interest Rates Typically lower interest rates due to home collateral. May have higher interest rates compared to HELOC.
Loan Amount Loan amount depends on available home equity. Loan amount based on creditworthiness and lender policies.
Repayment Terms Flexible terms with interest-only or variable payment options. Fixed repayment terms with predictable monthly payments.
Tax Benefits Interest payments may be tax-deductible (consult a tax advisor). No tax benefits directly related to the loan.
Approval Time Longer approval process involving home appraisal. Quicker approval process, often with same-day decisions.
Impact on Credit Can impact your credit if not managed responsibly. May have a lesser impact on credit compared to HELOC.
Risk to Home Your home is at risk if you default on the loan. No risk to your home; no lien placed on your property.
Interest Costs Lower interest costs over time due to typically lower rates. Higher interest costs compared to HELOC.
Accessibility Access to funds as needed during the draw period. Lump-sum payment at the loan's outset.
Flexibility Offers more financial flexibility during the draw period. Less financial flexibility due to fixed monthly payments.
Use for Other Purposes Can be used for other home improvements or expenses. Loan specifically for solar; not available for other purposes.

FAQs

Is financing solar worth it?

While each person’s financial situation is different, financing solar eases your upfront financial burden, making it easier for most people to begin their projects.

Can I finance solar if I have a low credit score?

Your credit score can influence your loan approval and interest rates. While lower credit scores may pose some challenges, there are financing options available, such as secured loans or co-signers, which can help individuals with lower credit scores access solar financing.

It's essential to explore these alternatives and discuss them with your financing provider to find a suitable solution.

What happens if I sell my home before the solar loan is paid off?

If you sell your home before your solar loan is fully paid, you have a couple of options. You can either:

  • Pay off the remaining balance with the proceeds from the home sale
  • Transfer the loan to the new homeowner (if they qualify).

It's essential to discuss these possibilities with your lender and the potential buyer to find the most suitable arrangement that ensures a smooth transition of the solar system.

What is the typical payback period for a solar installation?

The payback period for a solar installation can vary based on factors like system size, location, and energy savings. The exact timeframe depends on your specific circumstances and financing options, so it's advisable to discuss this with your solar provider to get a more accurate estimate.

Can I still use solar incentives if I finance my solar installation?

Yes, you can still take advantage of solar incentives if you choose to finance your solar installation. Many solar incentives are available to both cash buyers and those who finance their systems. These incentives can include tax credits, rebates, and other financial benefits, making solar financing a smart choice for homeowners seeking clean energy solutions and savings.

Solar Calculator

How much do solar panels cost? Use our easy solar panel calculator to get a quick estimate of how many solar panels you’ll need for your home.

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