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What are my solar financing options?

4 min read

solar financing

You've done some research on solar, are familiar with the clean energy and financial benefits, and are ready to go solar. But one question remains: how should you finance your solar panels? Can you get a solar loan? What exactly are all of your financing options? Thankfully, the solar industry has come a long way in the past decade, and there are many solar panel financing options.


In this article, we’ll talk about the different solar financing options that are available to you. These solar financing options include:

  • Solar loans
  • Power purchase agreement
  • Solar lease financing

Solar Loans

A solar loan is a great option for homeowners who want the home equity value and solar tax incentives that come from owning solar panels, without a large upfront cost. And of course, a solar loan allows you to enjoy the other clean energy and financial benefits of going solar.

There are a few ways to obtain a solar loan. Many solar companies (such as Vivint Solar) work with third-party financing organizations who can provide you with a solar loan. For example, we work with a financing company called Mosaic, which provides solar loans that customers can use to buy their solar panels and other equipment for their solar energy system from us. Using Mosaic is great because they don't require a down payment--just a monthly payment. Additionally, you can pay off your solar loan whenever you want (with no penalty). Just keep in mind that your credit score may impact whether you will be eligible to receive a loan or other financing for solar panels.

If you have a low credit score, you might consider special programs such as PACE (Property Assessed Clean Energy). PACE is a government program that finances solar and other projects that increase energy efficiency. The program varies by location, but in many places, homeowners can pay for their solar panels through a property tax assessment (so your credit score isn't a factor). You also have the option to finance your solar panels by applying for a personal solar loan through your bank, credit union, or another third-party financing organization.

solar loan

Zero-down solar financing options

If you don't want to purchase your solar panels outright or choose a solar loan, there are other solar financing options you can consider. These include a PPA (Power Purchase Agreement) and lease. Both are great options that can help you save money on power annually, but the availability varies by location.

Solar Power Purchase Agreement (PPA) Financing

The Power Purchase Agreement (PPA) is one of the most popular solar financing options. Not only is it affordable, but it makes going solar easy. With a PPA, the solar provider typically owns and maintains all of the equipment, and you just have to pay for the power that the solar panels produce. Additionally, the price per kilowatt-hour of solar energy is often lower than the rate that a traditional utility company charges for its electricity. That means more cash savings! Unfortunately, PPAs aren't available in every state. But your Vivint Solar representative can help you find out if they’re available in your service area.

Solar Lease Financing

Similar to a PPA, you don't pay any upfront costs for your panels with a solar lease. The solar provider typically takes care of solar panel installation, maintenance, and the warranty. Here's where it gets different: instead of paying for the solar energy that your solar panels produce, you're technically paying for the equipment. Just to clarify - you're not buying the solar energy system; you're just paying to use it. We'll estimate how much power your solar panels produce over the course of the year, divide that number by 12, and then multiply that number by the kWh rate to determine your monthly payment. If the solar panels don't produce as much solar energy as expected, we'll pay you the difference to compensate your bill. That means that you're guaranteed to never overpay for solar power.

As you can tell, there are plenty of solar financing options. Finding the perfect option for you will come down to your financial goals, preferences, and location. The good news is, we're here to help you navigate through these plans. Call Vivint Solar today to schedule a free consultation and ask them about the financing options that are available where you live.

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