If you’ve been thinking about going solar, 2025 is one of the best years to make the switch. Electricity prices in the U.S. have continued to climb, and solar technology has never been more affordable or efficient. But for many homeowners, paying cash for a solar system upfront isn’t realistic — that’s where solar loans come in.

The best part? In most states, you can also take advantage of the 30% federal solar tax credit and other local incentives.

Solar loans let you install solar panels with little or no upfront cost.

You can still qualify for federal and state incentives.

The best solar loan providers in 2025 offer low interest rates, flexible terms, and no prepayment penalties.

Top picks include Mosaic, LightStream, Sunlight Financial, Dividend Solar, and GoodLeap.

A solar loan is similar to a home improvement loan — except the funds are specifically for purchasing and installing solar panels. You borrow from a lender, pay back the principal plus interest, and own your solar system from day one.

There are two main types:

Secured Solar Loans – backed by collateral (like your home), usually offering lower interest rates.

Unsecured Solar Loans – based on your creditworthiness, without collateral.

1. Zero or low upfront cost — start saving without a huge initial payment.

2. Immediate ownership — you qualify for tax credits and incentives.

3. Predictable payments — fixed monthly installments help with budgeting.

4. Increased home value — owned solar systems can raise resale value by 4% or more.

Here’s our research on the best solar loan companies this year:

Interest Rates: As low as 3.49% APR

Loan Terms: 5–25 years

Highlights: Fast approval, no prepayment penalty, partners with top solar installers nationwide.

Best For: Homeowners looking for long-term, fixed-rate financing.

Interest Rates: 4.49%–9.99% APR

Loan Terms: 2–12 years

Highlights: No fees, same-day funding available, excellent credit required for best rates.

Best For: Borrowers with strong credit who want fast funding.

Interest Rates: Varies by installer partnership

Loan Terms: Up to 25 years

Highlights: Flexible payment structures, works directly with solar contractors.

Best For: Customers wanting competitive rates through installer financing.

Interest Rates: Starting around 4.99% APR

Loan Terms: Up to 20 years.

Highlights: Specializes in solar loans only, streamlined approval.

Best For: Solar-focused financing with simple applications.

Interest Rates: 2.99%–8.99% APR

Loan Terms: Up to 25 years

Highlights: Offers multiple financing plans, eco-friendly focus, and works with many installers.

Best For: Eco-conscious homeowners seeking flexibility.

APR Range: 7.49%–14.99%

Loan Terms: 2–7 years

Highlights: Great for average credit borrowers, funds available within days.

Solar incentives vary widely by state. For example:

California: Net metering and property tax exclusion for solar systems.

Texas: No state income tax + local rebate programs.

Florida: Sales tax exemption on solar equipment.

Always check the Database of State Incentives for Renewables & Efficiency (DSIRE) for up-to-date programs.

Check your credit score — it affects your interest rate.

Compare APRs, not just monthly payments.

Look for no-prepayment-penalty terms if you plan to pay it off early.

Match the term length to your goals — longer terms = lower payments, shorter terms = less interest paid.

Q: Can I get a solar loan with bad credit?

A: Yes, but interest rates will likely be higher. Some lenders allow co-signers or secured loan options.

Q: Do solar loans cover battery storage?

A: Many lenders now finance solar batteries along with panels.

Q: Will a solar loan affect my taxes?

A: Yes — owning your system makes you eligible for the federal 30% tax credit.

Choosing the best solar loan provider in 2025 comes down to your credit, location, and repayment goals. Whether you want the lowest rate, longest term, or the most eco-friendly financing partner, there’s an option for you.

By financing your solar system, you start saving money on electricity immediately — and by the time your loan is paid off, you’ll enjoy nearly free energy for decades.

Thinking of going solar and want help quantifying your savings? Get our free eBook on "How to Slash Your Energy Bills with a Solar Generator (Even If You Rent)". Here!