Personal loans for solar panels
A solar loan is an unsecured personal loan used to fund residential solar panel installation without pledging your home as collateral. Unlike dedicated solar financing (PACE loans, manufacturer financing) or HELOCs, an unsecured personal loan gives you full ownership of the system immediately, works for renters in some cases, and carries no lien on your property.
Why apply here.
- 01Fund the full cost of residential solar installation, no home equity needed
- 02Loan amounts from $5,000 to $50,000
- 03APRs typically 5.99% to 29.99% for prime borrowers
- 04No lien on your home (unlike PACE loans or HELOCs)
- 05Federal solar tax credit (ITC) of 30% of system cost available through 2032
About this loan.
What is the federal solar tax credit?+
The Residential Clean Energy Credit (ITC) allows you to deduct 30% of the cost of a qualifying solar installation from your federal taxes. On a $25,000 system, that's a $7,500 credit. The credit applies to the full installed cost including panels, inverters, labor, and permitting. It applies to your tax year of installation and is non-refundable (reduces taxes owed but doesn't generate a refund if you owe less than the credit amount).
Is a personal loan or a HELOC better for solar?+
Depends on your situation. A HELOC offers lower APRs because it's secured by your home, but it puts your home at risk and typically requires 20%+ equity. An unsecured personal loan is faster (funded next day vs. 3-6 weeks), carries no foreclosure risk, and works whether you have equity or not. For amounts under $30,000, the APR difference often doesn't justify the HELOC complexity.
Are there PACE loans I should consider?+
PACE (Property Assessed Clean Energy) loans are repaid through property tax assessments rather than a separate loan payment. They are easy to qualify for but carry a lien on your home, have higher effective APRs than they appear (when amortized correctly), and some buyers' lenders won't approve homes with PACE liens. For most homeowners, a personal loan is less risky and more portable.
Can I borrow more than the solar installation cost?+
Yes. Some homeowners roll in the cost of a battery storage system, EV charger, or electrical panel upgrade into the same personal loan. Confirm with your installer what can be included in the project scope, then borrow for the full bundled cost.