Solar financing
Cash, solar loan, lease, PPA, prepaid, HELOC, and PACE -- each has a different true cost, a different lender risk profile, and a different relationship to the federal credit that expired December 31, 2025. We show you the 25-year cost of each path, the dealer fee in dollar terms, and the honest status of every major lender.
The four paths
With no residential federal credit, the choice of financing path has larger consequences on 25-year total cost than it did in prior years. Each path below links to a dedicated page with lender detail, current eligibility, and 25-year cost math.
No dealer fee. No lender. Full eligibility for state incentives and SRECs. No federal residential credit applies in 2026 (Section 25D expired December 31, 2025). Highest long-term savings. Payback: typically 9 to 13 years in high-rate states.
Federal benefit in 2026
None (Section 25D expired December 31, 2025)
Solar loans typically carry a dealer fee of 19 to 35 percent of system cost, added to the loan principal without a line-item disclosure. We show you the fee in dollars before you sign. No federal residential credit in 2026. GoodLeap and Dividend Finance are active but named in Minnesota AG litigation.
Federal benefit in 2026
None for the homeowner (Section 25D expired). Dealer fee is the primary cost variable.
Dealer fee applies -- shown in dollar amount in every proposal
The third-party owner claims the Section 48E commercial credit and may pass value to you via lower monthly rates. Homeowner receives no direct federal credit. PPA legality varies by state -- verify via DSIRE before signing. Sunnova (Chapter 11 June 2025) not available for new agreements.
Federal benefit in 2026
Section 48E captured by the TPO company. Indirect benefit via lower rates. Homeowner receives no direct credit.
You pay the full discounted contract price upfront. The solar company owns the system, claims Section 48E, and offers a price 20 to 30 percent below a direct cash purchase. You receive ownership after approximately 5 to 7 years. Gaining traction in 2026 as the primary route to federal value for residential buyers.
Federal benefit in 2026
Section 48E passed through as a 20 to 30 percent discount on the prepaid price. Indirect federal value.
True-cost comparison tool
Enter your system cost and dealer fee percentage. The tool computes the 25-year total paid for each financing path, shows the dealer fee in both dollar and percent terms, and flags the CFPB and Minnesota AG citation. No contact required. This is an estimate, not a quote.
Typical residential: $17,500 to $30,500 (6 to 10 kW). No federal residential credit applies in 2026.
Industry range: 19 to 35 percent (CFPB Issue Spotlight, Solar Financing, 2025; Minnesota AG v. GoodLeap, 2024-2026). In dollars: $6,000 added to your loan balance.
Added to your loan balance. You pay interest on this amount. Sources: CFPB Issue Spotlight, Solar Financing, 2025; Minnesota AG v. GoodLeap, 2024-2026.
GoodLeap and Dividend Finance named in Minnesota AG dealer-fee litigation (April 2024, ongoing). Mosaic: Chapter 11 bankruptcy June 2025, not available. Sunnova: Chapter 11 bankruptcy June 2025, not available for new customers.
Prepaid discount leverages Section 48E commercial ITC captured by the TPO company. Effective path to federal value for residential buyers in 2026. Transfer to full ownership typically occurs at year 5-7.
No dealer fee. Variable rate (approx. 8% mid-2026). Home is collateral. Requires 720+ credit and sufficient equity. Despite higher stated APR, total paid is often lower than a solar loan with dealer fee.
Third-party owner claims Section 48E commercial credit. PPA legality varies by state -- verify via DSIRE before signing. Sunnova in Chapter 11; not recommended for new lease agreements.
PPA legality is not uniform. Verify availability in your state via DSIRE (dsireusa.org) before committing. Sunnova in Chapter 11; not recommended for new PPA agreements.
PPA availability varies by state. Verify via DSIRE (dsireusa.org) before committing.
These figures are estimates from the inputs you entered. They are not a quote and not a guarantee. No federal residential tax credit is applied, because the Section 25D residential credit expired December 31, 2025. Lease and PPA 25-year totals assume a 2% per year escalator. HELOC and loan totals assume fixed-rate approximations; actual rates are variable. State incentives are not included and may reduce the net cost of owned paths (cash, loan, HELOC, prepaid). Verify with your tax advisor before making any decision.
Commercial buyers: the Section 48E commercial credit (30 percent base rate) remains active. Construction must begin by July 4, 2026 for the current window. Verify with your tax advisor.
Lender status
Two of the largest solar lenders filed for bankruptcy in June 2025. Two others are named in active dealer-fee litigation. Most solar companies will not tell you this before presenting a loan proposal. We do.
Filed Chapter 11 in the Southern District of Texas on June 9, 2025. New originations ceased May 2025. Existing portfolio transferred to Solar Servicing LLC. NOT available for new customers.
Source: PV Magazine USA; Canary Media, June 2025
Filed Chapter 11 in June 2025 with $10.67 billion in total debt. Not actively offering new lease or PPA agreements. SunStrong Capital assumed the existing portfolio. NOT available for new customers.
Source: EnergySage; Canary Media, June 2025
Active for new originations. Named in Minnesota Attorney General dealer-fee lawsuit filed April 2024 (ongoing). Alleged undisclosed dealer fees of 19 to 35 percent. We disclose this litigation and the fee structure to every customer before recommending GoodLeap.
Source: PV Magazine USA; MN AG press release, April 2024
Active for new originations (now part of Fifth Third Bancorp). Named in Minnesota AG lawsuit (April 2024) and an MDL class action established October 2024. Alleged undisclosed dealer fees. We disclose this litigation and the fee structure before recommending Dividend.
Source: PV Magazine USA; MDL filing, October 2024
Lenders not listed above (Energy Loan Network, EnFin, Climate First Bank) carry no known bankruptcy or litigation flags as of the data date. Status information is accurate as of June 2026. Verify current lender status before signing any agreement.
Our commitment
Most solar companies receive a referral payment from the lender when you sign a solar loan. That creates an incentive to recommend the lender with the highest fee or the terms that produce the largest referral payment. We do not operate that way.
We present multiple financing options -- including HELOC, credit union options through Energy Loan Network, and no-dealer-fee alternatives -- alongside the specialty solar loan options. We show you the 25-year true cost of each. You decide based on total cost, not our payout.
No lender kickbacks
We are not paid by lenders based on volume or loan size.
Dealer fee disclosed upfront
Every solar loan proposal shows the dealer fee in dollar terms before you sign.
No financing quota
We do not have a financing product we are required to recommend.
HELOC and credit union options included
We present alternatives without dealer fees alongside specialty solar loans.
See your savings estimate before you choose a financing path.
Enter your monthly electric bill, state, and utility. Get a payback estimate and 2026 state incentive summary. No contact required.
Commercial buyers
The Section 48E commercial ITC (30 percent base rate) applies to businesses, commercial property owners, and third-party-owned systems. It can be combined with MACRS 5-year depreciation and, where eligible, a direct-pay election. Confirm eligibility with your tax advisor before construction starts.
Commercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
Get a Free Commercial AssessmentOur full dealer-fee guide -- including a dollar-by-dollar worked example for a $24,000 system, the history of the Minnesota AG lawsuit, and the lenders with no dealer fee -- is at dealer fee transparency.
Common questions
Direct answers. No redirects to a sales call.
A free in-home assessment includes a full financing comparison with all dealer fees disclosed in dollar terms. No sales pressure. No shared leads.
