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Best Solar Panel Loans of 2024
Best for Same-Day Funding
SoFi®
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
650
APR range
8.99% to 29.99%
with autopay
Loan amounts
$5,000 to $100,000
Via Credible.com’s Website
650
8.99% to 29.99%
with autopay
$5,000 to $100,000
Editor’s Take
SoFi is an online lending platform that offers unsecured fixed-rate personal loans in every state. Founded in 2011, SoFi has extended over $50 billion in loans and stands out for allowing high loan amounts and its availability of extended loan terms.
Loans are available from $5,000 to $100,000, making SoFi a great option for those with excellent credit who need to borrow a large amount of money. Loan amounts available may vary by the state you live in. Repayment terms range from two to seven years, making SoFi an incredibly flexible option for those with sufficient credit (minimum 650) and annual income (at least $45,000). SoFi also lets prospective borrowers submit joint applications—although co-signers are not permitted.
Approved borrowers are rewarded with comparatively low APRs. What’s more, SoFi doesn’t charge origination fees, late fees or prepayment penalties—a stand-out feature because personal loan lenders often charge origination or late payment fees at a minimum.
However, if you’re considering a debt consolidating loan from SoFi, keep in mind that the lender does not offer direct payment to a borrower’s other creditors. This means the loan proceeds will be deposited to your bank account and you’ll have to pay off your other lenders individually. The platform does offer customers a number of other perks and discounts.
Pros & Cons
- Prequalification without a hard inquiry
- Same-day approval possible
- Can pay off third-party creditors directly
- High credit score requirement
- Co-signers not permitted
Details
Eligibility
- Minimum credit score required. 650
- Minimum annual income. $45,000
- Co-borrowers. Permitted
- Co-signers. Not permitted
Expert’s Take
What I find impressive about SoFi is its innovative approach to lending, with a focus on providing borrowers with personalized loan options tailored to their unique financial situations.
As a small business owner, I benefited from SoFi’s competitive rates and borrower-friendly terms, which include no origination fees or prepayment penalties. Also, SoFi’s member benefits, such as career coaching and financial planning resources, add value beyond just the loan itself, making it an attractive choice for entrepreneurs looking to grow their businesses while managing their finances responsibly.
— Michael Ashley, finance expert, Richiest.com
Best for Low Interest Rates
LightStream
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
660
APR range
6.99% to 25.49%
with autopay
Loan amounts
$5,000 to $100,000
660
6.99% to 25.49%
with autopay
$5,000 to $100,000
Editor’s Take
LightStreamoffers loans with both a low minimum and maximum interest rate, along with a rate-beat program. LightStream’s unsecured personal loans range from $5,000 to $100,000 with loan amounts varying based on the loan purpose. In addition to offering appealing and flexible terms, LightStream charges no origination, late payment or prepayment fees. The lender also offers a 0.50% rate discount for borrowers who enroll in autopay.
Pros & Cons
- Long loan terms available
- Low interest rates
- Fast approval and funding
- No prequalification option
- High minimum loan amount
- Low average customer rating on Trustpilot
Details
Eligibility:
- Minimum credit score. 660
- Minimum income. Does not disclose
- Co-borrowers. Permitted
Expert’s Take
Lightstream, a division of Trust Bank, is known for its range of loan options and competitive rates. The downside can be its strict eligibility criteria, making it difficult for those with less-than-stellar credit history to gain approval.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
Best for Fast Funding & Below-Average Credit
LendingPoint
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
600
APR range
7.99% to 35.99%
with autopay
Loan amounts
$1,000 to $36,500
Via MoneyLion’s Website
600
7.99% to 35.99%
with autopay
$1,000 to $36,500
Editor’s Take
LendingPoint is an online lender that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it doesn’t offer loans in Nevada and West Virginia.
Why We Like It
LendingPoint offers longer loan terms than many other lenders—24 to 72 months—or two to six years—providing borrowers with more flexibility in their repayment plans.
What We Don’t Like
High maximum APRs and origination fees up to 10% may make LendingPoint more costly for less-qualified borrowers.
Who It’s Best For
LendingPoint is best for borrowers who want a longer repayment period.
Pros & Cons
- Quick funding
- Low credit score requirements
- No prepayment penalty
- Origination fee up to 10%
- Co-signers or joint loans not permitted
- Not available in Nevada and West Virginia
Details
Eligibility:
- Minimum credit score. 600
- Minimum annual income. $35,000
- Co-signers. Not permitted
Expert’s Take
LendingPoint can be a good option for those who may not have a high credit score. They focus more on the potential borrower’s job history and income when determining loan eligibility and rates.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
Best for Bad Credit
Upgrade
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
580
APR range
9.99% to 35.99%
Loan amounts
$1,000 to $50,000
Via Credible.com’s Website
580
9.99% to 35.99%
$1,000 to $50,000
Editor’s Take
Upgrade offers accessible online credit and banking services, including personal loans of $1,000 to $50,000.
Why We Like It
Upgrade allows borrowers to apply with co-signers and sets a low minimum credit requirement of 580, increasing the chances of approval.
What We Don’t Like
Upgrade’s loans only go up to $50,000. The lender also charges origination fees between 1.85% and 9.99% of the loan amount, which can decrease the total borrowed amount.
Who It’s Best For
Upgrade’s personal loans are best for borrowers with poor credit histories who may not qualify for a personal loan without a co-signer.
Pros & Cons
- Flexible eligibility requirements
- Can pay off creditors directly
- High loan amounts available
- High APR range
- Fees for late payments and insufficient funds
- Charges origination fees from 1.85% and 9.99%
Details
Eligibility:
- Minimum credit score. 580
- Minimum income. None
- Co-applicants. Permitted
Expert’s Take
Upgrade’s personal loans come with a unique feature—mandatory automatic payments. While this is an effective default prevention measure, it might not suit everyone, especially those with irregular income streams.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
Best for Comparing Multiple Offers
Universal Credit
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
580
APR range
11.69% to 35.99%
Loan amounts
$1,000 to $50,000
Compare Rates
Via Credible.com’s Website
580
11.69% to 35.99%
$1,000 to $50,000
Editor’s Take
Universal Credit is an online lending platform that offers personal loans between $1,000 to $50,000 through its partners. Repayment terms range from three to seven years.
While Universal Credit makes finding a personal loan accessible even to those with damaged credit, it comes with a few tradeoffs. First, it charges high APRs, well above the most competitive rates seen on our list. Second, Universal Credit charges a 5.25% to 9.99% origination fee on all personal loans. Because this is deducted from your loan proceeds, you’ll need to factor this in when determining your loan amount to ensure you receive the necessary amount after the fact.
Pros & Cons
- Flexible qualification requirements
- Next-day funding
- No prepayment penalty
- APRs are higher than those offered by top competitors
- Origination fees from 5.25% to 9.99%
Details
Eligibility:
- Minimum credit score. 580
- Minimum income. Does not disclose
- Co-signers. Not permitted
- Co-borrowers. Not permitted
Best for No Interest if Repaid Within 30 Days
Discover
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
660
APR range
7.99% to 24.99%
Loan amounts
$2,500 to $40,000
Via MoneyLion’s Website
660
7.99% to 24.99%
$2,500 to $40,000
Editor’s Take
Discover is an online bank that also offers customers credit cards, retirement solutions and personal loans in all 50 states. As a lending platform, Discover stands out because of its online application and mobile banking tools, well-reviewed customer support team and quick funding.
In general, loans are available from $2,500 to $40,000 and may be issued for between three and seven years. So, while borrowers may get a larger loan from another lender, the repayment terms are fairly flexible. Discover charges a late payment fee and does not offer an autopay discount; however, it does not charge any origination fees or prepayment penalties, making it competitive with other top personal loan providers.
Pros & Cons
- No origination fees
- Low interest rates
- Direct creditor payoff with debt consolidation loans
- No interest rate discount for automatic payments
- No co-signers or co-borrowers accepted
- Good credit needed to qualify
Details
Eligibility:
- Minimum credit score required. 660
- Minimum annual income. $25,000
- Co-borrowers. Not permitted
- Co-signers. Not permitted
Compare the Best Solar Panel Loans
| Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Minimum credit score | APR Range | Loan amounts | Learn More CTA text | Learn more CTA below text | Learn More |
|---|---|---|---|---|---|---|---|---|---|
| SoFi® |  | 4.0 |  | 650 | 8.99% to 29.99% | $5,000 to $100,000 | Compare Rates | Via Credible.com's Website | |
| LightStream |  | 4.0 | | 660 | 6.99% to 25.49% | $5,000 to $100,000 | Compare Rates | Via Credible.com's Website | |
| LendingPoint |  | 4.0 | | 600 | 7.99% to 35.99% | $1,000 to $36,500 | Compare Rates | Via MoneyLion’s Website | |
| Upgrade |  | 3.5 |  | 580 | 9.99% to 35.99% | $1,000 to $50,000 | Compare Rates | Via Credible.com's Website | |
| Universal Credit |  | 3.5 | | 580 | 11.69% to 35.99% | $1,000 to $50,000 | Compare Rates | Compare rates from participating lenders via Forbes Advisor | |
| Discover |  | 3.5 | | 660 | 7.99% to 24.99% | $2,500 to $40,000 | Compare Rates | Read Our Full Review |
Methodology
We reviewed 29 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 20%
- Eligibility and accessibility: 20%
- Customer experience: 15%
- Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our.
How to Compare Solar Panel Loans
Follow these tips when comparing solar panel loans:
- Consider solar panel specialty loans.Look for solar-specific loan products, such as financing offered by the solar panel manufacturer or installer.
- Take time to find the best option.Shop around to find the best deal. Be sure to considerinterest rates, terms and fees.
- Review your terms.Read the fine print and make sure you understand all of the terms and conditions—especially when it comes to leases and power purchase agreements (PPAs).
- Understand your goals.Consider why you are switching to solar and what your goals are before committing to financing or signing a lease agreement.
- Research potential tax incentives.Make the most of available state and federal tax incentives.
How Much Do Solar Panels Cost?
Solar panels costanywhere from $3,500 to $35,000, with an average expense of around $16,000. Installation can cost between $15,000 and $25,000, depending on the size and location of the system.
Transitioning a home to solar power is expensive, but state and federal incentives can help eligible homeowners save.State tax creditsare available to cover between 10% and 20% of solar costs, with 22% to 26% in federal tax credits also accessible depending on when the panels are installed. To calculate the true cost of panels, subtract the amount of any state or federal incentives from the total price of the solar panel system.
Because of these high upfront costs, many homeowners borrow money to pay for them.
How Do Solar Panel Loans Work?
Solar panel loans work like any other type of loan. You borrow money from a lender and make monthly payments until the loan is paid off. While many solar panel loans are secured by thesolar panelsyou’re financing, which means the lender can repossess the panels if you default, you can also get an unsecured loan through online lenders like those on this list.
Interest rates on solar loans generally range from 4% to 7% but can go up to around 36%. Ultimately, the cost of borrowing depends on several factors, including interest rate, term length and fees. Solar panel loans are typically structured as fixed-rate loans, which means your interest rate will not change over the life of the loan. Origination fees usually range from 1% to 5% of the loan amount, but some solar loans can come with origination fees as high as 30%.
Unsecured solar loans, also known aspersonal loans, typically come with repayment terms between one and seven years; their secured counterparts offer terms between 10 and 20 years, though some lenders provide terms up to 30 years. The longer the term length, the lower your monthly payments.
How to Get a Solar Panel Loan
Prospective borrowers typically need a credit score of at least 680 to qualify for a solar loan. However, some lenders impose less rigorous requirements with minimums as low as 550 or 580. Lenders may also require that you have equity in your home or impose other loan eligibility guidelines.
If you’re ready to get a solar panel loan, consider these options:
- Inquire about in-house financing.Depending on your location and the panels you’re buying, there may be several ways to get solar panel financing. Start by asking the solar panel manufacturer and installer whether it offers in-house financing. This can be a good option if you don’t have good credit or want a streamlined loan process.
- Ask around for referrals.Also ask if your manufacturer has relationships with lenders who offer solar loans. If you have friends or family members who have already made the switch to solar, they may be able to provide recommendations as well.
- Work with your local bank.Many traditional lenders like banks and credit unions offer solar loans, and they may be able to give you a lower interest rate if you have an existing relationship with them.
- Shop for solar loans online.There are a number of online lenders that offer solar-specific loans as well as personal loans that can be used to purchase and install home solar systems.
When you’re ready to apply for a loan, complete a formal application online or in person. This typically includes providing information about your income, debts and credit history, as well as information about the solar panels being financed.
After your application is submitted, the lender will review your information and make a decision. If necessary, the lender may contact you to request additional information or documents to support your application. If the loan is approved, the lender will send a loan offer describing the terms and conditions. Review the offer carefully before signing.
Solar Panel Loan Alternatives
Solar panel loans are just one type of solar financing. You also can lease solar panels, enter into a power purchase agreement or choose from other common forms of financing.
State and Federal Solar Incentives
Though not a form of financing, federal solar incentives allow homeowners to deduct 26% of the cost of a solar panel system from their federal taxes for systems built in 2020 to 2022 and 22% for those purchased in 2023. The program will expire in 2024 unless it is renewed by Congress.
State solar incentivesvary, but many states offer their own tax credits or rebates between 10% and 20% of the panel costs. Depending on your location and utility provider, additional special financing programs may be available.
Home Equity Loan
With a home equity loan, you can borrow against the equity in your home and use the proceeds to buy solar panels. Because a home equity loan is secured by the house, this type of financing will typically come with a lower interest rate than a solar panel loan—but it also comes with the risk of foreclosure if you default.Home equity lendersgenerally only allow homeowners to borrow up to 85% of their equity in the home.
Home Equity Line of Credit (HELOC)
A HELOC is similar to a home equity loan, but instead of getting a lump sum of cash, you get a line of credit that you can access on an as-needed basis. HELOCs typically have variable interest rates, so they are less predictable than personal loans and home equity loans.
Cash-out Refinance
If you have equity in your home, you can refinance your mortgage and get cash to cover the cost of purchasing and installing solar panels. Lenders generally require homeowners to retain at least 20% equity in their home when getting a cash-out refinance.
Mortgage interest rates are lower than for unsecured alternatives, but a cash-out refi will increase the size of your mortgage and the amount of interest you pay on it over time. You’ll also have to pay closing costs, which can be 2% to 6% of the mortgage amount.
Lease or PPA
With a solar lease, the homeowner makes monthly payments to the solar panel installer but doesn’t own the solar panels. A PPA, on the other hand, involves a homeowner installing solar panels at the cost of the utility company, then buying electricity at a rate lower than the typical cost of power. Under both structures, maintenance is typically handled by the solar panel owner—not the homeowner.
These arrangements can be a good option if you want to transition to solar power but don’t have the money to pay for panels upfront or make large loan payments. Leasing might also be an optimal choice for those who don’t want the hassle of maintaining panels themselves. Still, solar panel loans are the best option if you want to own your solar panels outright and enjoy the maximum financial benefits.
Is a solar loan worth it?
Whether a solar loan is worth it depends on several factors, including the total cost of the system, annual savings in electricity costs and how long you intend to stay in the house. It’s also important to consider your reasons for switching to solar. For example, do you only want to save money, or are you trying to be more eco-friendly?
To calculate whether a solar loan is worth it financially, determine the actual cost of the panels by subtracting available rebates and tax credits from the total cost of the system. Then, determine how much you’ll save in electricity costs each year by switching to solar. Calculate how many years it will take to pay off the solar panels by dividing the actual cost of the system by your annual savings.
If you intend to live in your home beyond your break-even point, switching to solar may be worth it. Keep in mind, though, that this calculation is extremely basic and doesn’t take into consideration the cost of interest or intangibles like the value of being off-grid or a desire to be more sustainable.
What is the interest rate on a solar loan?
Solar panel loans typically have an interest rate between about 4% and 17% (up to 36% for personal loans). That said, the interest rate a borrower qualifies for will depend on their credit score, the loan term length and the size of the solar panel system.
How long is a typical solar loan?
Unsecured personal loans have terms between one and seven years while secured solar panel loans typically have terms of 10 to 20 years. Some specialty lenders offer more flexible options for up to 25 or 30 years. The term length ultimately depends on a number of factors, including the size and cost of the solar panel system, interest rate and borrower creditworthiness.
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Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
