Our solar loan calculator is a financial planning tool that can help you determine the monthly loan payments for installing solar panels. This easy-to-use tool helps homeowners and businesses effectively budget for going solar.
Result
Monthly Payment
$
Payable InterestThe loan interest payable is how much interest you will pay to the lender for the loan tenure.
$
Total AmountThe total payment is how much you will owe in loan payments which includes principal and interest.
$
Using our loan calculator is easy and involves entering inputs to obtain more information on your solar energy loan. Making an informed decision can help ensure your loan payments are affordable and fit your household budget. Let’s examine the solar loan calculator inputs and results.
Simply input the required values for our solar loan calculator, including:
The loan amount is how much you plan to borrow to finance your solar panel system. This value is usually equal to or less than the total cost of the solar panel system.
The interest rate is expressed as a percentage, and the lending institution or solar company sets the interest rate.
The loan tenure is the length of time for repaying the debt using regular, fixed payments and relates to the loan term.
The loan amount is how much you plan to borrow to finance your solar panel system. This value is usually equal to or less than the total cost of the solar panel system.
The interest rate is expressed as a percentage, and the lending institution or solar company sets the interest rate.
The loan tenure is the length of time for repaying the debt using regular, fixed payments and relates to the loan term.
After inputting the required values, our loan calculator will display the following information:
The monthly payment is the fixed amount you will pay each month for your solar loan.
The loan interest payable is how much interest you will pay to the lender for the loan tenure.
The total payment is how much you will owe in loan payments which includes principal and interest.
The monthly payment is the fixed amount you will pay each month for your solar loan.
The loan interest payable is how much interest you will pay to the lender for the loan tenure.
The total payment is how much you will owe in loan payments which includes principal and interest.
Many solar companies offer solar loans when purchasing a solar system, but the rates and terms may vary. You might also be able to take out a home equity line of credit or personal loan through a bank or credit union.
It is critical to find a loan that fits your budget. Some homeowners can find solar loans where the monthly payments equal the solar energy savings. Thus, buying solar panels has no impact on their monthly cash flow. This is most common with loans with longer terms because the payments are spread out over a more extended period.
Here are some practical tips for making an informed decision when applying for a solar loan:
Installing solar panels can virtually eliminate your monthly electricity bills. But your exact savings depend on your electricity usage, electricity rates, the capacity of your solar system, and whether your utility company offers net metering.
Solar homeowners can save almost $1,500 annually with a 6-kilowatt (kW) solar panel array. As electricity prices increase, so will the savings from your rooftop solar system.
The payback period of most rooftop solar energy systems is around 8 to 10 years across much of the United States if you can take advantage of the solar tax credit. The shorter the solar payback period, the higher the solar's return on investment (ROI).
In addition, a solar installation can increase your home value significantly. According to a Zillow study, solar panels can increase your home value by 4.1 percent!
Our solar savings calculator is a tool that accurately estimates how much money you can save on your utility bills by going solar. Enter your details to find out how much you can save.
Many solar shoppers question solar loans. Let’s explore some topics you may be wondering about, such as interest rates, solar system costs, qualifying for financing, and more.
Both ownership models have advantages and disadvantages, and the best option depends on your financial situation, preferences, and long-term goals. Financing your solar system means you can take advantage of the tax credits, but you are responsible for solar system maintenance.
With a solar lease, the company that owns the solar panels is responsible for system maintenance. Still, you aren’t eligible for the tax credits, which can complicate future selling your home.
Solar panels can be a good investment for most homes and businesses with sunny roofs because they generate renewable energy for 25 to 30 years. Installing solar panels can significantly reduce your electricity bills, and the savings usually far outweigh the initial investment.
Also, solar panels can boost the resale value of your home and make it more appealing to home shoppers. If you finance your solar system, look for low solar loan rates so you don’t pay as much interest.
The average cost of a residential solar energy system without batteries is $2.95 per watt, before solar incentives, according to EnergySage. That means a 6 kW solar system costs about $17,700 and is eligible for a $5,310 tax credit.
Therefore, the total cost after incentives is about $12,400 or less if local solar incentives are available. Refer to our solar savings calculator to estimate how much money you will save on your electricity bill from installing solar panels.
The interest rates on solar loans can range from 4% to as much as 36% in 2023. Typically, secured solar loans have lower interest rates than unsecured loans because they are backed by your home, similar to a mortgage. However, interest rates on loans change over time as market conditions shift.
Secured loans, such as home equity loans, commonly have a term between five and 20 years, sometimes 30 years. Unsecured loans commonly have shorter terms, between one and seven years.
The time needed to pay off a solar panel loan depends on several factors, including the loan amount, interest rate, and payment terms. Most solar loans have repayment periods ranging from two to 20 years, but between about five and ten years is the most common.
It’s best to have a credit score of 600 or more to secure a solar loan, but you may qualify for a home equity loan or personal loan with a lower credit score. Exact credit score requirements can vary by the lender or solar company.