Best Solar Loans 2026: Rates, Terms, and Lenders Compared
Compare the best solar loan options in 2026 — rates from 4.99% to 8.99%, terms from 5 to 25 years. Find the right loan for your solar installation.
Solar Loan Overview: What to Expect in 2026
Solar loans allow you to own your system with $0 down while spreading payments over 5–25 years. Unlike leases, you keep any applicable state tax credits and all long-term savings. Interest rates in 2026 range from 4.99% to 8.99% APR depending on your credit score, loan term, and lender.
| Loan Type | APR Range | Terms | Best For |
|---|---|---|---|
| Dealer/installer loan | 5.99–8.99% | 10–25 yrs | Convenience, $0 down |
| Home equity loan (HELOC) | 7.00–9.00% | 5–20 yrs | Lowest total interest |
| Personal solar loan | 6.99–14.99% | 3–12 yrs | No home equity required |
| FHA Title I loan | 6.00–8.00% | Up to 20 yrs | Lower credit scores |
| PACE financing | 5.99–8.99% | 5–25 yrs | Property tax payment |
Top Solar Loan Lenders in 2026
These lenders are consistently rated highly for solar financing:
- Mosaic Solar Loans: One of the largest solar-specific lenders. Offers rates from 5.99% APR with terms up to 25 years. Available through many installers.
- GreenSky: Offers 0% promotional periods (12–18 months) followed by standard rates. Widely available through installers.
- Sunlight Financial: Competitive rates, fast approvals, and a wide installer network.
- LightStream (SunTrust/Truist): Unsecured personal loans for solar at 6.99–14.99% APR. No home equity required. Good for borrowers with excellent credit.
- Enerbank: Specializes in home improvement financing including solar. Offers same-as-cash and low-rate options.
- Credit unions: Often offer the lowest rates for members. Check your local credit union for home improvement or personal loan rates.
The Dealer Fee Problem
Many solar loans offered through installers include a 'dealer fee' — a fee paid by the installer to the lender that is typically added to your loan balance. Dealer fees range from 10–30% of the loan amount and are often not disclosed clearly. A $25,000 system with a 20% dealer fee results in a $30,000 loan balance. Always ask your installer: 'What is the dealer fee on this loan?' and compare the effective APR.
Frequently Asked Questions
What credit score do I need for a solar loan?
Most solar lenders require a minimum credit score of 640–680. The best rates (under 6% APR) typically require 720+. Some lenders offer programs for scores as low as 580.
Is a solar loan better than a lease?
For most homeowners, yes. A solar loan lets you own the system, claim the 30% tax credit, and keep all long-term savings. Total 25-year returns with a loan are typically 2–3x higher than with a lease.
What is the best loan term for solar?
A 10–12 year loan typically offers the best balance of monthly payment and total interest paid. Shorter terms (5–7 years) save on interest but have higher monthly payments. Longer terms (20–25 years) have lower payments but significantly higher total interest.
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