Top 10 Solar Industry Lenders

Aug 3, 2022

7

min read

F

inancing solar panels can be challenging. Solar panels are a long-term investment with expensive upfront costs. It's for this reason that choosing the best lender is essential. To get the best deal on solar financing, you need to do some rate shopping and explore multiple options.

Below you will find the top 10 solar industry lenders you can consider for solar financing:

Sun Power

Sun Power is a renowned US-based solar energy company that provides complete solutions for installing, manufacturing, and financing solar panels. The company is best known for producing efficient energy and offering affordable solar leases and loans. The company has recently launched Sun Power Financial to ease its solar financing process.

What It Offers

Sun power offers the lowest APR ranging as low as 0.99% for a 15-year loan and 1.99% for a 25-year loan. It also provides 0% APR for up to 25 years for qualified residential solar and storage customers in the selected regions. Furthermore, it offers $0 down and one low monthly payment.

In addition, it has initiated a program to increase solar power access to customers who live in marginalized communities by 25% by 2025. Thus, it provides 0% APR for them to install the solar panels at home. It also includes financing for shared roofs, leased land, accessory dwelling units, and mobile homes.

Pros

Up to $150,000 credit limit for well-qualified customers.
Mobile app for system monitoring.
25-year warranty.
Reimbursement if the system does not perform as expected.
Top-notch customer service.

Cons

PPAs for commercial clients only.
Poor follow-up.

Sunrun

Sunrun is one of the biggest residential solar companies in the US, offering best-in-class equipment and the industry's best financing options. It provides solar panels, solar batteries, and installation services to install solar energy.

What It Offers

Sunrun offers a lower upfront cost with an initial payment as low as $0. The interest rate depends on your credit profile and score. Sunrun allows you to get a quote to get the lowest price possible. Additionally, it has an app to monitor the system's production.

It also provides customized solar products with personalized service. The expert solar advisors offer one-on-one consultation to guide the complexities and details of solar. Additionally, each system is custom designed using proprietary software to fit the home's needs and profile.

Apart from this, Sunrun offers daily system monitoring, maintenance, repairs, and comprehensive insurance. It provides 25 years of warranty, including free equipment replacement and system repairs, including all parts and labor, and the guarantee that roof penetrations are watertight for an entire decade. It also offers a comprehensive insurance policy to protect the panels from theft or damage.

Pros

Affordable financing options.
Daily system monitoring.
Comprehensive insurance.
Warranty for 25 years.
Customized solar product.
Personalized service.

Cons

Expensive upfront installation costs for a solar lease.
Not available in all US states.

Dividend Finance

Dividend Finance offers a variety of loan options for solar panels installation. It has partnered with over 700 solar installation companies to finance homeowners with their solar installation. Dividend finance operates through a partnership with Keybank.

What It Offers

Dividend Finance offers several solar loans, including PACE (property assessed clean energy), EmpowerLoan, Solar + Storage loan option, and PACE loan. PACE loan allows the business owners to finance solar panels and other energy-efficient upgrades on privately owned commercial property.

It provides flexible loan terms customized according to the client's needs with zero down payment, no prepayment penalties, monthly repayments, and low-interest rates; The interest rates range anywhere from 3.49% to 6.99%. However, the interest rates are based on the client's credit profile. The repayment terms are generally between 12 to 20 years, and solar loans are available for up to $120,000.

Pros

Zero Down payment.
Flexible financing options.
Installation service warranty.
No prepayment penalty.
Affordable interest rates.
Solar loans for business.

Cons

Not available in Montana, North and South Dakota, Alaska, and Vermont.
Payment through autopay only.

Lowtility

Lowtility is a mortgage product of Primary Residential Mortgage Inc. (PRMI) that offers mortgage loans to finance its home energy improvement projects. The company aims to provide affordable loans and save the additional cost of solar financing. It combines the mortgage and solar payment into one payment, thus, saving the extra money.

What It Offers

Lowtility allows the homeowners to finance the cost of their new home and solar energy system through the same loan, namely solar mortgage loans. Since you are borrowing solar and mortgage loans simultaneously, it will save you the loan origination fee, thus, reducing the overall cost of the system. Doing so can save up to 20% of the price of solar panels. The loans have terms ranging from 10 to 30 years, and the interest rate depends on your credit score and profile

The solar mortgage product is new to many people. However, the customer service at Lowlity is helpful and friendly to help you understand the product, guide you throughout the process and provide the information required.

Pros

Saves the extra cost of solar panels.
Affordable home financing.
Top-notch customer service.

Cons

Not beneficial to take out solar loans only.
Do not advertise the mortgage rates.
No smartphone app.
Poor follow-up.

Goodleap

Goodleap, formally Loanpal, is a simple point of sale solution for multiple sustainable home upgrades. It offers simple, fast, and flexible ways to finance sustainable products, including solar panels and battery storage. It provides affordable financing options and aims to save the planet while saving money.

What It Offers

Goodleap offers loan terms for 7 and 25 years, and the APR is as low as 1.99%. However, the interest rate depends on your credit profile and history. If you have credit scores between 600 and 649, you can qualify for up to $45,000. However, if you have a credit score above 700, you can be eligible for a loan up to $100,000.

Pros

Affordable interest rates.
Wide range of financing options.

Cons

Slow customer service.
Poor follow-up.

Sunlight Financial

Sunlight Financial partners with several solar companies worldwide to offer homeowners affordable and innovative loans. It blends its expertise with cutting-edge technology to provide quick and hassle-free financing to homeowners. It offers the sale, financing, and installation of solar panels.

What It Offers

Sunlight Financial offers affordable and low-down payments to finance solar panels. The interest rates can be as low as 0.49% for a 20-year loan and 1.49% for a 15-year loan. However, the interest rate depends on your credit profile and existing market rate. For credit scores between 650 and 699, it offers loans between $10,000 and $70,000.

Pros

Professional customer service.
Affordable and low down payments.
Offers unsecured loans.
Quick approval.

Cons

Expensive for short-term loans.
A minimum loan amount of $10,000 must be obtained.

Sunnova Energy

Sunnova Energy is a leading national residential solar company that delivers exceptional service, providing more choices and access to solar energy with customized options to fit any home and budget. It offers solar panels, solar batteries, and roofing services.

What It Offers

Sunnova Energy offers low interest and down payments as low as $0. The interest rates depend on your credit score and profile. You can request a free quote, and a sales representative can help you find grants, tax credits, and financing options. It provides ten-year roof warranties, a 25-year system warranty, 24/7 monitoring and maintenance, and replacement services.

Pros

Warranty up to 25 years.
Low upfront cost.
Tesla powerwall installer.
Quick approval.

Cons

Poor follow-up.
Available in 39 states only.

EnerBank

Enerbank is a reliable home improvement lender that offers the best home improvement lending products and services, such as solar panels and home upgrades. They have also developed a robust and expanding network of contractors and significant retailers of home improvement projects. The bank merged with Regions bank in October 2021 and operates jointly.

What It Offers

The Enerbank interest rates range between 1.99% and 6.99% and offer fixed monthly payments. It provides a power loan as a single re-amortized loan option. Reamortization helps reduce the repayment amount and does not impact the loan terms. Enerbank also offers tailored loan payment options with the chosen dealer and 120-180 days of credit commitment.

Pros

Affordable loan.
Quick loan process.
Zero-interest loan option.
Nationwide presence.
Personalized service.
Tailored loan payment options.

Cons

Lack of transparency.
Slow customer service.

GreenSky Credit

Greensky credit facilitates solar financing through home improvement loans. The loans are funded by partner banks and offered through partnered home improvement contractors and retailers. The company was acquired in March 2022 by Goldman Sachs.

What It Offers

Greensky credit offers home loans up to $65,000. It provides a deferred interest loan in which you don't have to pay interest for the promotional period. It usually lasts for 6, 12, 18, or 24 months. If you pay off the entire loan before the promotional period, you don't have to pay interest. The deferred interest rates range from 6.99% to 24.99%, with repayment terms from 3 to 12 years. If you need longer repayment terms, you might be eligible for lower APR with rates from 0.99% to 24.99% and repayment terms of 25 years.

Pros

Quick approval.
Deferred interest up to the promotional period.
Offers joint loan option.
Affordable interest rate.
No interest loan if the loan is paid within the promotional period.

Cons

Deferred interest can be expensive if the loan is not paid within the promotional period.
Must work with Greensky contractors.

AmeriFirst

AmeriFirst is a renowned name in the mortgage industry. Apart from mortgage loans, the company also provides solar financing through its FHA 203(K) loans. The loan is offered to borrow the funds required for home improvements and upgrades. Amerifirst was ranked as a top 20 FHA 203(K) loans provider nationwide in 2020.

What It Offers

Borrowers can use the FHA 203(K) loans for upgrades, reconstruction, and structural alterations. It requires a minimum 3.5% down payment, and you can borrow up to 96.5% of the projected value after improvements are made. The interest rates are based on your credit score and profile. It offers personalized and top-notch customer service to guide you throughout the loan process.

Pros

Affordable interest rate.
Top-notch customer service.
The mobile-friendly application process.

Cons

Mortgage Insurance Premium (MIP) is required.
Primary residence, owner-occupied homes only.
Comparatively high loan origination fee.

Conclusion

Solar panels are expensive and long-term investments. There are various financing options to finance solar panels, including personal loans, solar loans, home improvement loans, and solar lease and purchase power agreements. Also, several solar industry lenders are offering competitive rates, amounts, and terms. Buckle up to go on rate shopping to determine which lender and loan best fits your needs and requirements.