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Solar Panel Loans: Compare Solar Financing Options

Updated on August 1, 2023
NerdWallet
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NerdWallet
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If you want to save on your utility bills and shift to a sustainable source of energy, solar panels can be a cost-effective option.

The average solar panel system, including installation, can cost between $15,000 and $25,000, according to the Center for Sustainable Energy, but systems can last 25 to 30 years and save you thousands of dollars in electric bills over their lifetimes.

One financing option is unsecured personal loans, which have fixed interest rates and terms of two to seven years. The short repayment terms on unsecured solar loans make them one of the quickest ways to pay off the purchase so you can start saving.

You can also consider a home equity loan or line of credit or cash-out refinancing to pay for solar panels. Federal and state tax benefits are also available to help you get some of the money you spend back. If you’re not ready to commit to solar panels of your own, leasing is also an option.

Here are five lenders that offer unsecured solar loans, as well as details about other financing options.

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LightStream:

Lightstream

Est. APR

6.49-25.29%

Loan amount

$5K-$100K

Min. credit score

660

See Offers
on LightStream's website
on LightStream's website
  • Qualifications:

    Key Facts:

    LightStream offers low-rate personal loans with repayment terms up to seven years.

    Qualifications:
    • Minimum credit score: 660, but can vary depending on the loan purpose and amount.
    • Maximum debt-to-income ratio: 50%.
    • Minimum credit history: 3 years.
    • Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
    • Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
    Available Term Lengths:2 to 7 years
    Fees:
    • Origination fee: None.
    • Late fee: None.

LightStream:

Lightstream

Est. APR

6.49-25.29%

Loan amount

$5K-$100K

Min. credit score

660
See Offers
on LightStream's website
on LightStream's website
  • Qualifications:

    Key Facts:

    LightStream offers low-rate personal loans with repayment terms up to seven years.

    Qualifications:
    • Minimum credit score: 660, but can vary depending on the loan purpose and amount.
    • Maximum debt-to-income ratio: 50%.
    • Minimum credit history: 3 years.
    • Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
    • Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
    Available Term Lengths:2 to 7 years
    Fees:
    • Origination fee: None.
    • Late fee: None.

Last updated on August 1, 2023

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How we chose the best personal loans

Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.

35+

Lenders reviewed

We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.

25+

Categories assessed

Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.

70+

Data points analyzed

Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.

Star rating categories

We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
Affordability

25%

We review lenders’ annual percentage rate offerings at least twice per year and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.

Customer experience

20%

We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.

Underwriting and eligibility

20%

We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.

Loan flexibility

20%

We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.

Application process

15%

We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.

5.0

Overall score

NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 70 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
To recap our selections...

NerdWallet's Solar Panel Loans: Compare Solar Financing Options