Dealer fee transparency
A dealer fee of 19 to 35 percent is added to your solar loan principal without a line-item disclosure in most contracts. The CFPB and the Minnesota Attorney General have both flagged this practice. We disclose it in dollar terms on every proposal.
How the fee works
A solar company quotes you a $24,000 system and offers a 4.99 percent, 20-year loan. The lender charges the installer a dealer fee of 25 percent. The installer adds this to your contract price. You do not see "dealer fee: $6,000" on the paperwork. You see a system cost of approximately $30,000 and a loan payment that reflects a $30,000 principal.
Over 20 years at 4.99 percent, the total paid on a $30,000 loan is approximately $47,600. On the same rate applied to the actual $24,000 cost, the total is approximately $38,100. The dealer fee costs you approximately $9,500 over the loan term in this example.
This is the core issue the CFPB flagged in its 2025 Solar Financing Issue Spotlight and the practice the Minnesota AG alleged in its lawsuit against GoodLeap (filed April 2024) and Dividend Finance (named in a separate MDL class action, October 2024).
Dealer fee: dollar impact at three common rates ($24,000 system)
| Fee rate | Fee in dollars | Total loan principal |
|---|---|---|
| 19% | $4,560 | $28,560 |
| 25% | $6,000 | $30,000 |
| 30% | $7,200 | $31,200 |
| 35% | $8,400 | $32,400 |
Source: CFPB Issue Spotlight, Solar Financing, 2025. Range 19 to 35 percent per CFPB disclosure and content collection data.
Lenders with active dealer-fee concerns:
Compare this option against cash, HELOC, and prepaid in the 25-year true-cost tool.
No contact required. Enter your system cost and dealer fee percentage and see the total for each path.
Common questions
A free in-home assessment includes a full financing comparison. No shared leads. No commission on the financing recommendation.
