We don't like being negative about our industry, but we need to write about the 1.99% financing, or 2.99% financing, or 3.99% financing offers you may see with some solar companies.   We call it convenience financing and it is a typical way to finance home services like windows, doors, furniture, and appliances.   It is high-risk financing where the financing company behind the loan does not qualify the creditworthiness of the buyer.  Because of the higher risk involved the financing company places a dealer fee to the loan and that gets passed on to the buyer.  The fee can be substantial.  Thousands of dollars.  The solar salesperson selling this convenience may have an application where they snap a picture of your driver's license, it fills out the pertinent information on the screen and within minutes the salesperson shows you the finance application is approved from the screen.  It is fast, it is convenient, and the buyer has no idea of the money that goes to the financing company.  Or that they paid for that convenience with a much higher cost for their solar. But the loan is approved and the solar is going to save you $20 a month from your average electricity bill.  It could be a 30-year loan.

Having the right financing is essential. In the early days of solar, the problem was that established banks and lending institutions knew very little about solar or the industry to feel comfortable to finance it. Just in the last couple of years did solar start seeing credit unions and banks willing to finance solar energy loans.  Getting a great solar loan should be as easy a great car loan. Credit Unions are great financiers of cars and now are starting to finance solar! Currently, we offer excellent financing with the same lenders who finance your vehicle with the same low interest.