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Best Solar Panel Loans for February 2026
With the average residential solar panel system in the US costing between $15,000 and $25,000, the right financing option can be a huge difference between a smart investment and a significant burden.
To help you make a more informed choice, we highlighted the top solar lenders in the market today.
Compare Solar Loan Offers
LightStream
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
LightStream is a solid option for this type of financing due to its simplicity. The lender offers unsecured personal loans, with a specific Solar and Sustainable Home Improvement loan offer, featuring competitive fixed rates, without any additional fees.
- •No collateral required
- •Extremely fast application
- •No prepayment penalties or hidden fees
Upgrade
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
For homeowners with less than stellar credit, Upgrade can be a great alternative, as the lender only does a soft credit pull which doesn’t affect your score. The company does charge an origination fee, but it also features faster-than-usual approval times.
- •Very accessible credit requirements
- •Rate checking with no credit score impact
- •Funds sent directly to your bank account quickly
SoFi
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
SoFi stands out due to its massive loan limits, which can be extremely useful for larger-scale solar arrays combined with battery storage systems. The lender provides membership benefits such as financial planning and doesn’t charge any mandatory fees.
- •High loan limits up to $100,000
- •No late fees or origination fees
- •Unemployment protection for peace of mind
Prosper
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Prosper operates as a peer-to-peer lending marketplace, and features a dedicated loan offer created specifically for solar panel installations and energy-efficient upgrades. Because Prosper connects borrowers directly with investors, they can sometimes be more flexible with credit requirements than traditional banks.
- •Fully online application process
- •Flexible loan offer
- •Fixed monthly payments for easy budgeting
How to Choose the Right Financing Option
While you may be tempted to simply go for the option with the lowest interest rate, there are a few other considerations you have to keep in mind before making a decision.
- Dealer Fees vs. APR: You might run into lenders that offer zero interest financing options, but most of them will charge a large dealer fee, which commonly goes 20% or more of the project cost.
- Secured vs. Unsecured: A secured loan (like a HELOC) may have lower rates but uses your home as collateral. Unsecured loans are faster and safer for your property but usually require better credit.
- The Tax Credit Bridge: The federal Investment Tax Credit (ITC) currently covers 30% of your system cost, which serves as a massive incentive for installing solar panels on your home. For example, if a panel system costs $25,000, you are eligible for a tax credit of $7,500. Most lenders will offer a bridge loan for this 30% that stays interest-free for 12-18 months until the IRS refunds you.
Maximizing Your ROI
After you’ve chosen a lender, the last few steps you should take have all to do with making the most out of your solar investment.
For starters, include the File Form 5695 while filing your federal taxes in order to claim your residential energy credit.
The second step is to apply the tax refund you get from the IRS as soon as you can, funneling it directly into your solar loan principal to keep your monthly payments low and to avoid even beginning to think about spending that money elsewhere. Paying off your loans should always come first.
Lastly, make sure to check if you can earn Solar Renewable Energy Certificates (SRECs) in your state. These allow you to sell
credits for the energy you produce back to the utility company, creating a secondary stream of income to help pay off your loan even faster.
FAQ
Is it better to lease or buy solar panels?
Buying is almost always better for long-term ROI. When you own the panels via a loan, you get the 30% tax credit and increase your home’s value. With a lease, the solar company keeps the tax credit.
What credit score do I need for a solar loan?
Most specialized lenders look for a score of 650 or higher. However, lending marketplaces and peer-to-peer lenders can often provide loans for borrowers with scores as low as 600.
Can I pay off my solar loan early?
Most reputable solar lenders do not charge prepayment penalties. In fact, paying down the principal early is the best way to maximize your energy savings.