Choosing to install a solar system in your home is an exciting decision that can help you reduce energy costs over time and your conventional energy use. That said, complete solar systems typically cost around $ 12,000, so funding is often required. The best solar loans can help homeowners buy and install solar systems on flexible and affordable terms.

To help Treehugger readers choose the solar loans that meet their needs, we’ve rounded up the best.

Final result

If your solar panel supplier does not provide financing or you want to purchase more competitive rates, there are a number of lenders who offer personal loans to cover solar expenses. The best solar panel loans have low rates, flexible terms, and accessible eligibility terms. Our overall best choice, LightStream, is a flexible lender that allows clients to access high loan amounts for a range of loan terms. Plus, APRs are competitive and there are no fees, making it a cheaper way to finance solar panels, especially if you have a good credit rating.

What’s the best way to finance solar panels?

There are several ways to finance solar panels, with the best option depending on your specific needs and circumstances. In general, however, financing typically takes the form of solar specific loans, general personal loans, or financing through solar panel suppliers and installers. You can also opt for a home equity loan or line of credit to finance your home’s solar upgrade.

How long can you finance solar panels?

The term of the solar panel loan can range from two to 20 years, although it can be longer. As with other types of loans, the terms of solar panel loans differ depending on factors such as the creditworthiness of the borrower and the amount of the loan.

Is a solar loan tax deductible?

Generally speaking, interest paid on personal loans is not tax deductible. However, if your solar loan is secured by your home, such as a home equity loan or other type of mortgage financing, the interest is tax deductible. There are also a number of tax credits available for certain expenses related to the installation of solar systems.

How we choose the best solar panel loans

To choose the best solar panel loans for Treehugger readers, we evaluated 15 leading lenders and compared them based on factors such as APR ranges, available loan terms and amounts, and fees. We also looked at each lender’s application process, customer service options, and whether the lender allows co-signers or co-applicants.