3 Types of Solar Panels (Which Is Right for You?)
By Leonardo David /
Here’s what we’ll cover in this guide:
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So, how do solar loans work, exactly? In essence, they operate in the same way as any typical loan for a home or car would: After selecting a provider and solar panel type to install, you take out the loan to purchase a solar energy system and repay the borrowed money over time.
The energy savings provided by the solar panel system, plus the federal solar tax credit, can be used to pay back that loan plus a bit of interest. The typical solar loan payback period ranges between five and 10 years, allowing a borrower to enjoy over a decade of free renewable energy generated by their system after paying it off.
Nationwide Service
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SunPower designs and installs industry-leading residential solar and storage solutions across all 50 states. With a storied history of innovation dating back to 1985, no other company on this list can match SunPower’s experience and expertise.
SunPower earns its position as the top national installer on our list for a handful of reasons: It installs the most efficient solar technology on the residential market, offers the most expansive service area and backs its installations with a warranty well above the industry standard. All the while, SunPower pioneers sustainability efforts within the industry.
If that weren’t enough, SunPower systems come packaged with products all manufactured in-house by its sister company, Maxeon. This means that your panels, solar cells, inverters, battery and EV chargers are designed to work together and are all covered under the same warranty.
SunPower’s biggest downside? Its high-efficiency panels are considerably more expensive than most of its competitors’ products. However, its powerful panels are workhorses that make up for the initial cost with more backend production (think about this like spending more money for a car that gets more miles per gallon).
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Better Business Bureau (BBB) Rating |
Year Founded |
Average Cost ($-$$$$$) |
Solar Services |
Brands of Solar Equipment Offered |
Warranty Coverage |
5 |
A+ |
1985 |
$$$$ |
Solar Panels, Solar Batteries, EV Chargers, System Monitoring |
SunPower Panels |
25-year all-inclusive warranty |
Regional Service
Average cost
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We like Blue Raven Solar because it understands that, for most homeowners, the cost of solar presents the biggest barrier to entry.
For that reason, Blue Raven Solar developed an innovative solar financing plan that offers in-house, flexible, zero-money-down options. The results speak for themselves, as Blue Raven Solar is now one of the fastest-growing solar companies in the nation and was recently acquired by SunPower. Its BluePower Plus+ plan (exclusive to Blue Raven) mimics the flexible structure of a lease while still providing the greatest benefits of owning your system.
Eligible homeowners enjoy 18 months of solar power before having to pay their first bill. When coupled with the federal solar investment tax credit (ITC), the initial energy savings can offset more than a third of the overall cost of a system before requiring a dollar down.
In contrast, other installers can only offer similar financing through solar leases, PPAs or third-party providers (such as Mosaic or Sunlight). Third-party loan providers can complicate the process, while opting for a loan or PPA will disqualify you from some of solar’s biggest benefits (additional property value, federal solar tax credit and local solar incentives).
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Better Business Bureau (BBB) Rating |
Year Founded |
Average Cost ($-$$$$$) |
Solar Services |
Brands of Solar Equipment Offered |
Warranty Coverage |
4.5 |
A+ |
2014 |
$$ |
Solar Panels, System Monitoring |
Trina Solar, Canadian Solar, SolarEdge, Silfab, SunPower |
25-year manufacturer warranty; 10-year workmanship warranty, 2-year production guarantee |
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ADT Solar sets the industry standard for warranty coverage by including a multifaceted guarantee, making it one of the top installers for homeowners who want added peace of mind.
Its warranty coverage includes all of the following for 25 years:
Though in recent years other solar companies have started to offer similar guarantees, ADT Solar has been at it since 2008, performing over 30,000 installations across the country.
EcoWatch Rating |
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Better Business Bureau (BBB) Rating |
Year Founded |
Average Cost ($-$$$$$) |
Solar Services |
Brands of Solar Equipment Offered |
Warranty Coverage |
4 |
A- |
2008 |
$$$ |
Solar Panels, Solar Batteries, EV Chargers, Energy-Efficiency Upgrades |
Silfab, Panasonic and others depending on location |
25-year all-inclusive warranty |
Solar lending comes in many different forms and can finance 100% of the cost of a solar installation. Many loan providers offer low monthly payments or zero-money-down options depending on your situation. Here are the most common types of loans:
For the most part, the terms and conditions of solar borrowing reflect those of any other standard loan. More specifically:
Overall, solar loans provide a wonderful opportunity for customers to enjoy the perks of system ownership without having to spend an uncomfortable amount of money upfront. Though the overall value loans provide is slightly lower than a cash purchase, the overall savings are significantly greater than a solar lease.
Loans and leases are very different, starting with the ownership of the solar panels themselves. When you lease a solar energy system, your solar provider retains ownership. This allows your provider to enjoy the benefits of ownership, namely, cashing in on the federal tax credit.
Leasing solar equipment can also complicate selling a home, and getting out of a solar lease comes with hefty cancellation fees. In our experience, most solar horror stories result from unethical solar companies pushing leases on unassuming customers under the guise of “free solar panels.” Customers can end up trapped in a bad contract with no way out.
Don’t let that scare you off of a solar lease, however, if that’s what you can afford. Just be sure to do your research. Though solar leases can save customers money and lower their reliance on fossil fuels, the long-term value of a solar lease is far lesser than the long-term benefits of system ownership. When you cover your solar energy system cost with a loan, you can still enjoy the following:
There are a number of factors to keep in mind when considering the best solar loan for your needs, including:
If you are still researching how much a solar system would cost for your home, you can click below to connect with an EcoWatch-vetted installer and get a free estimate.
Another important factor to consider is whether you’ll want a secured loan or an unsecured loan. Let’s break it down:
A secured loan is generally the smarter choice when possible. However, if you don’t have enough equity in your home (or aren’t in a place to risk it), an unsecured loan may be the wiser decision.
Confident you know the best type of loan for your situation? Now comes securing the lowest interest rate possible. Most solar loan interest rates, such as those from lender LightStream, range from 3.99% to 16.99%. But it is possible to get lower rates. Here are a few tips to keep your rates as low as possible when financing a solar panel system:
Given the undeniable environmental and financial benefits of solar energy efficiency, federal and local government bodies often launch programs to help make solar financing more feasible for their residents.
Homeowners who are interested in going solar should also know about Property Assessed Clean Energy (PACE) loan programs. According to the Department of Energy, PACE programs “allow a property owner to finance the up-front cost of solar energy or other eligible improvements on a property and then pay the costs back over time through a voluntary assessment.”
What makes these programs unique is that the assessment is tied to the property itself, not to the individual. PACE financing legislation exists in some form in 36 states plus Washington D.C. A handful of states have separate solar loan programs and rebates for homeowners. Here are some current programs worth knowing about:
State | Solar Loan Program | Maximum Loan Amount | Interest Rate | Longest Repayment Term |
Connecticut | Energy Conservation Loan Program | $25,000 | 0% to 7% | 12 years |
Louisiana | Home Energy Loan Program (HELP) | $6,000 | 2% | 5 years |
Michigan | Michigan Saves Home Energy Financing | $50,000 | 4.44% to 7.90% | 15 years |
North Carolina | State-regulated municipal loan options | Varies | Up to 8% | 20 years |
Ohio | Energy Conservation for Ohioans (ECO-Link) Program | $50,000 | 3% APR reduction on bank loans | 7 years |
Additionally, certain cities, municipalities and even utility companies may offer low-interest solar loans. We recommend researching your specific area before turning to banks or credit institutions. The DSIRE database is a helpful resource.
If your state doesn’t have its own solar energy loan program or you’re not eligible for enrollment, there are plenty of other places to get solar loans. Any of the best solar companies will be sure to assist you in finding a loan partner, but some other places to check include:
Some installers use a third-party solar lender, but some, such as Blue Raven Solar, offer innovative financing directly. We can’t emphasize enough the importance of shopping around and comparing rates and offers before deciding on which solar lender is the best fit for your needs.
To get started with a free quote and find solar loan information from a top solar company in your area, you can click below to connect with an EcoWatch-vetted installer and get a free estimate.
As is so often the answer with questions related to solar energy, it depends. Solar loans help you increase the value of your property, lower electric bills, minimize your impact on the environment and claim some tax incentives. However, paying for your solar panel installation upfront with cash offers the best return on investment.
Rates for most loan types are between 3.99%-16.99% but will vary depending on location, credit score, loan lender and more. Remember to always shop around and check your local government, utility company and solar installers to ensure you find the lowest interest rate possible.
If you have sufficient home equity, a secured loan is often the most cost-effective approach. If you don’t have sufficient home equity, an unsecured loan can work just fine.
Typically, yes, you can buy a solar battery with a solar loan. But make sure you double-check the terms of your loan.
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