RESIDENTIAL SOLAR FINANCING MADE EASY AND AFFORDABLE
With solar, you’ll actually look forward to monthly bills.
What are your solar financing options?
There are many popular options for financing a solar installation, including solar loans, solar leases, and solar Power Purchase Agreements (PPAs). It is important to find the option that works best for your budget and credit profile. Many financing options have minimum credit score requirements, which makes it difficult to get solar financing with bad credit. Use the table below to compare solar financing options.
PACE Funding |
Home Run Loans | Home Equity Line of Credit (HELOC) | Credit Card | |
|---|---|---|---|---|
| Repayment Terms |
Up to 30 Years
|
Up to 25 Years
|
Up to 30 Years
|
Not Applicable
|
| Rate Structure |
Always Fixed
|
Always Fixed
|
Fixed or Variable
|
Compounding
|
| Approval Time |
Within Minutes
|
Within Minutes
|
Up to a Month or Longer
|
Same Day
|
| Approval Based on Credit Score |
No
|
Yes
|
Yes
|
Yes
|
| Obligation Shows on Credit Report |
No
|
Yes
|
Yes
|
Yes
|
| Lien on the Property |
Yes
|
No
|
Yes
|
No
|
| Tax Deductible Interest |
Consult Your Tax Advisor
|
No
|
Consult Your Tax Advisor
|
No
|
| Rates |
3.99% Rate / 6.58% APR1
|
3.99% Rate / 6.2% APR2
|
Dependent on Credit Score
|
12.99% – 21.99% APR4
|
| Enhanced consumer protections |
Yes
|
Yes
|
No
|
No
|
Financing your solar project through Home Run Financing
Once the project was complete, we were very excited. We couldn’t wait to see next month’s bill.
Camille – Broward County, FL
What to consider before financing solar projects
One of the primary goals of any residential solar installation should be to reduce the total cost of electricity for the homeowner. Solar will help reduce your monthly electricity bill by reducing the amount of electricity you purchase from your utility. However, you will still need to account for the cost of your new solar electricity when calculating savings. If you decide to finance your panels through a solar loan, the monthly or annual cost of the financing plus any remaining utility costs should be less than what you are paying for electricity today.
When you get a proposal from your local solar contractor, be sure to have them show you your total expected savings today and in the future, including any solar financing costs. Typically your savings will grow over time, as local utility rates increase. Be sure that your local solar contractor is using a realistic assumption for the annual increase in utility rates, so that they are not over estimating the savings you will see.
Make sure your roof is in good condition.
Solar panels can easily last 20 to 30 years or longer. It is important that your roof is in good condition prior to installing solar panels. The good news is that Home Run Financing can also be used to finance a new roof, so if you are interested in tackling both projects at the same time, contact us today.
Consider financing multiple solar projects.
Home Run Financing can help finance solar hot water and solar pool heaters, in addition to solar electric/PV. These projects can be done using a single home improvement financing application and we can connect you with the right local contractors to get the job done, regardless of the type of solar you are considering.
Consider the quality of solar products.
There is a wide range of solar products and solar panels on the market. Key product considerations include size, appearance, and panel efficiency. There are also considerations around the type of inverter that might be best and whether or not a battery backup solution might make sense. Our PACE solar program only finances high quality, proven products and our carefully screened installer network can help you think through the best solar products for your home.
Eligible in multiple states and more than 909 communities
Click a state below to confirm PACE solar financing is available in your area.
California
Florida
Missouri
Solar financing FAQ
Solar financing is a great way to avoid the high upfront costs of installing solar and still save money on your bills over time. Be sure to look for long repayment terms, and low fixed rates to help keep your repayment costs as low as possible. Contact us today and we can help you understand if PACE is eligible for your home improvement financing needs.
If you choose a solar lease, you don’t actually own your solar panels at the end of the lease. With a lease, you are essentially renting the panels for a predetermined monthly payment. Under a lease, any available solar tax credits will go to the solar leasing company, not the homeowner. Many solar leases require a twenty year agreement and at the end of the lease you may have the options to purchase the panels, extend the lease or have the panels removed.
If you choose to finance your investment through a solar loan or a PACE solar program, you own the panels and you are eligible to receive any available solar tax credits. To learn more, visit the PACE funding page.
While you may see advertisements for “free” solar panels, you should be wary of these claims. Frequently this is simply a marketing tactic for solar leases or solar PPAs. Under both types of arrangements, a company will put solar panels on your roof for no money up-front but will charge you for the electricity that they produce. Most offers will save you money but not all of them, so make sure you’ve thoroughly compared all your options, including financing solar panels through Home Run Financing.
Homes with solar panels are typically easier to sell and there are even studies that have shown that solar can increase the value of your home.
APR example uses a $25,000 project with 30 year term. Base rate is 3.99% and requires a 13.99% homeowner buydown fee that is financed as part of the PACE property tax assessment. Final APR will vary on based total project cost, selected term, and rate choice. Rates are current as of August 1, 2021 and are subject to change without notice. Not all rates and terms are available in all states.
APR example uses a $25,000 project with 25 year term. Base rate is 3.99% and requires a 14.99% homeowner buydown fee that is financed as part of the loan. Final APR will vary on based total project cost, selected term, and rate choice. Rates are current as of August 1, 2021 and are subject to change without notice. Not all rates are available in all states.
30 year repayment terms are not available for all project types. Repayment terms are determined by estimated useful life of the product and manufacturer product warranty period. Repayment term options may vary by state. Not all term options are available in all starters Term options are subject to change at any time.
Rate range is for Discover Card and is based on data compiled in February 2021 from the Discover website.
