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The federal solar tax credit (Section 25D) expired December 31, 2025. Homeowners now get $0 back from the IRS on a cash or loan purchase. That change exposed what was always there but hidden: massive dealer fees that inflate your loan by 20-35%. Here is the honest breakdown of every major solar lender in 2026.
Avg Dealer Fee
22%
added to loan balance
Median Solar Loan APR
7.75%
up from ~1.5% (2024)
TPO Market Share
69%
of 2026 installs
Federal ITC
$0
25D expired 12/31/25
In 2026, the average solar loan includes a 22% dealer fee that inflates your loan balance by $5,700+ on a typical system. The "low APR" you see advertised is bought down by this hidden fee. Before signing any loan, ask your installer for the cash price — then compare the total cost of the dealer-fee loan vs. a no-fee alternative like a HELOC or credit union loan.
Solar lenders advertise rates as low as 1.99%. What they do not tell you is that your installer paid a 25-35% fee to the lender to buy down that rate — and that fee is rolled into your loan balance.
GoodLeap-style, 1.99% APR, 25-year term
7.0% APR, 15-year term
The Verdict
The "low APR" dealer fee loan costs $864 more
Despite a 1.99% APR vs. 7.0%, the 30% dealer fee inflates the loan balance so much that the total cost far exceeds the no-fee alternative. The HELOC is also paid off 10 years sooner.
9 lenders reviewed. Dealer fees, APRs, FICO requirements, and red flags for each.
Designed for solar but watch for dealer fees
APR Range
1.99% – 9%
Dealer Fee
19% – 35%
Min FICO
600
States
50
Loan Terms
Key Features
Warnings & Red Flags
Largest residential solar lender. Funded $27B+ in clean energy loans.
Filed bankruptcy Oct 2023, emerged Dec 2023. Operating with new capital structure.
APR Range
2.49% – 7.99%
Dealer Fee
15% – 30%
Min FICO
600
States
48
Loan Terms
Key Features
Warnings & Red Flags
Previously #2-3 solar lender. Restructured with reduced operations.
Warnings & Red Flags
Was a top-3 solar lender. No longer originating loans.
APR Range
4.49% – 7.24%
Dealer Fee
8% – 18%
Min FICO
640
States
40
Loan Terms
Key Features
Warnings & Red Flags
Positioned as a more transparent alternative to the Big 3.
More institutional stability, some no-fee options
by Fifth Third Bank
Acquired by Fifth Third Bank (2024). Now operates as Fifth Third Solar Lending.
APR Range
3.49% – 6.99%
Dealer Fee
15% – 25%
Min FICO
660
States
28
Loan Terms
Key Features
Warnings & Red Flags
Now backed by Fifth Third Bank. More institutional stability post-acquisition.
by Qcells (Hanwha)
APR Range
3.99% – 8.99%
Dealer Fee
12% – 22%
Min FICO
600
States
45
Loan Terms
Key Features
Warnings & Red Flags
Growing rapidly, especially after Mosaic exit. Backed by $3B+ Hanwha Qcells.
Lower total cost despite higher APRs
APR Range
6.99% – 12.99%
Dealer Fee
0% – 5%
Min FICO
640
States
9
Loan Terms
Key Features
Warnings & Red Flags
Disrupting the dealer fee model. Small but growing in key solar markets.
by Truist Bank
APR Range
6.49% – 25.29%
Dealer Fee
None (0%)
Min FICO
660
States
50
Loan Terms
Key Features
Warnings & Red Flags
Best option for borrowers who want zero dealer fees and a straightforward loan.
APR Range
5.24% – 9.19%
Dealer Fee
None (0%)
Min FICO
620
States
50
Loan Terms
Key Features
Warnings & Red Flags
Often the best total-cost option. No dealer fees, competitive rates, local service.
Enter your system cost and see exactly how dealer fees change the total cost. Plug in quotes from different lenders to see which saves you the most over the life of the loan.
Low APR + dealer fee vs. market rate + no fee: which actually costs less?
Solar lenders advertise rates as low as 0.99-2.99%, but they add a 15-35% dealer fee to your loan balance. This calculator shows the true total cost of both approaches so you can make an informed decision.
Ask your installer: "What would I pay in cash today?"
1.99% APR with 30% dealer fee baked into the loan
1.99% APR + 30% dealer fee
Loan Amount
$33,800
Monthly Payment
$143.10/mo
Total Interest
$9,129
Total Paid
$42,929
7.00% APR + 0% dealer fee
Loan Amount
$26,000
Monthly Payment
$183.76/mo
Total Interest
$29,129
Total Paid
$55,129
The 1.99% APR loan actually saves you $12,200 compared to a 7.00% APR loan over 25 years. This is uncommon.
Cash Price
$26,000
Dealer Fee (30%)
+$7,800
You Borrow
$33,800
The installer charges $7,800 extra to cover the lender's fee. That cost is hidden in your loan balance, not on any line item.
Loan Amount
$26,000
Monthly Payment
$241.02/mo
Total Paid (15 yr)
$43,384
HELOC interest may be tax-deductible (consult a tax advisor). Uses your home as collateral. Rate shown is illustrative.
8 kW system, $26,000 cash price. Two real financing paths.
| Metric | GoodLeap-Style | Credit Union HELOC |
|---|---|---|
| Advertised APR | 1.99% | 7.00% |
| Dealer Fee | 30% ($7,800) | 0% ($0) |
| Loan Amount | $33,800 | $26,000 |
| Loan Term | 25 years | 15 years |
| Monthly Payment | $143/mo | $234/mo |
| Total Interest | $9,129 | $16,065 |
| Total Paid | $42,929 | $42,065 |
| Cost Over Cash Price | $16,929 | $16,065 |
| Years to Payoff | 25 years | 15 years |
Despite a 7.0% APR (vs. 1.99%), the no-fee HELOC costs dramatically less because you borrow $26,000 instead of $33,800. You are also debt-free 10 years sooner. The "low APR" solar loan is a more expensive product disguised as a cheaper one.
Since the residential solar tax credit (Section 25D) expired December 31, 2025, homeowners who buy get $0 from the IRS. But lease and PPA companies still qualify for the 30% ITC under Section 48/48E because the third-party system owner (the financing company) claims the credit — not the installer, not the homeowner.
This is why 69% of 2026 residential solar installs are projected to be third-party owned (lease or PPA). For many homeowners, a lease now delivers better economics than a loan with a 20-30% dealer fee.
Follow these five steps to avoid overpaying by thousands.
Before discussing financing, ask every installer: "What is the cash price for this system?" This is the true cost of the hardware and installation without any dealer fee markup. If an installer refuses to share the cash price, walk away.
For every loan offer, ask: "What percentage is the dealer fee, and how much does it add to my loan balance?" Reputable installers will tell you. If they say "there is no fee" on a sub-3% APR loan, they are not being transparent — the fee is built in. The Minnesota AG lawsuit established that these fees must be disclosed.
A $138/month payment for 25 years costs far more than $234/month for 15 years. Always compare the total amount paid over the full term of each loan. The lowest monthly payment almost always means the highest total cost because of longer terms and hidden dealer fees.
Get a HELOC or home improvement loan quote from your credit union or bank. These loans have zero dealer fees, and the interest may be tax-deductible (for HELOCs — consult your tax advisor). Even at 7-8% APR, the total cost is usually lower than a 1.99% solar loan with a 25%+ dealer fee.
If the total cost of the best loan offer is within 10% of what a lease or PPA would save you, seriously consider TPO. The financing company captures the 30% ITC under Section 48/48E and passes savings to you. In 2026, leasing is no longer the "bad deal" it was when homeowners could claim 25D.
See exactly how much a dealer fee adds to your solar loan total cost.
Compare cash, loan, lease, and PPA side-by-side with your actual numbers.
Complete overview of all financing options after the federal tax credit expired.
Detailed comparison of owning vs. leasing in the post-25D era.
See your personalized financing options based on your home, roof, and credit.
Answers to the most common questions about solar lenders and financing in 2026.
A dealer fee (also called an origination fee or rate buy-down fee) is an upfront charge that solar installers pay to lenders to secure a lower advertised APR for borrowers. The fee — typically 15-35% of the system cost — is rolled into the loan balance, meaning you finance a much larger amount than the system actually costs. On a $26,000 system with a 25% dealer fee, you would borrow $32,500, with the extra $6,500 going directly to the lender as payment for the low interest rate.
GoodLeap is the largest residential solar lender and offers fast approvals with low FICO minimums (600). However, GoodLeap has the highest dealer fees in the industry (19-35%), was named in the Minnesota Attorney General dealer fee lawsuit, and does not offer a transparent no-dealer-fee loan option. Homeowners often pay $8,000-$12,000 more over the life of the loan compared to a no-fee HELOC or credit union loan, even though the advertised APR looks lower.
Mosaic ceased loan originations in May 2025 and filed for bankruptcy in June 2025. If you have an existing Mosaic loan, your loan is still valid and payments are still due — the loan servicing was transferred to another entity. You cannot apply for new Mosaic loans. Mosaic was also named in the Minnesota AG dealer fee lawsuit. Former Mosaic customers should contact their current loan servicer for any questions.
Solar loans can still be worth it, but the math changed dramatically when Section 25D expired on December 31, 2025. Without the 30% federal tax credit to offset the purchase price, the total cost of a dealer-fee solar loan is often higher than the savings from solar electricity over 25 years. The key is to compare the total cost of the loan (including all dealer fees and interest) against the total cost of a lease or PPA, which can capture the commercial ITC under Section 48/48E and pass savings to you.
The best solar loan in 2026 is one with zero dealer fees. Credit union HELOCs (5.24-9.19% APR, 0% dealer fees) and LightStream personal loans (6.49%+ APR, 0% dealer fees) typically result in the lowest total cost despite higher nominal interest rates. Among solar-specialty lenders, Enfin and Sungage offer lower dealer fees than GoodLeap, and both have no-dealer-fee product options.
To avoid dealer fees: (1) Ask your installer for the cash price before discussing financing, (2) Get a HELOC or home improvement loan from your bank or credit union at market rates, (3) If using a solar lender, specifically request a no-dealer-fee loan option (Enfin, Dividend, and Sungage offer these), (4) Compare the total cost (principal + interest) of a dealer-fee loan vs. a no-fee loan — the no-fee loan almost always costs less over the full term.
In most cases, yes. A HELOC at 7% with no dealer fees on a $26,000 system results in a lower total cost than a solar loan at 1.99% with a 25% dealer fee ($32,500 loan balance). Over 25 years, the HELOC saves approximately $8,000-$12,000 in total payments. The HELOC interest may also be tax-deductible (consult your tax advisor). The main downsides are that a HELOC uses your home as collateral and may have a variable rate.
Minimum credit scores vary by lender: GoodLeap and Enfin require 600, Sungage requires 640, LightStream and Atmos require 640-660, and Dividend requires 660. Credit unions vary but typically start at 620. Higher credit scores (720+) unlock the best rates. If your score is below 640, GoodLeap is the most accessible option, but be aware of its high dealer fees.
You cannot remove the dealer fee from an existing loan since it is already baked into the principal balance. However, you can refinance the remaining balance with a HELOC, credit union loan, or personal loan at market rates. If you refinance early, you effectively remove the future interest cost on the inflated dealer-fee portion. Many homeowners save thousands by refinancing out of a high-dealer-fee solar loan within the first 2-3 years.
In 2026, leasing has become more competitive than buying for many homeowners. Since the residential tax credit (Section 25D) expired, homeowners who buy get $0 in federal savings. But lease and PPA companies can still claim the 30% ITC under Section 48/48E because they own the system. This means third-party ownership often delivers lower monthly costs than a financed purchase. Compare your total loan cost (including dealer fees) to a lease payment — if the loan costs 10%+ more, leasing is likely the better deal.
Get a personalized solar quote with transparent pricing. We show you the cash price first, compare loan vs. lease vs. PPA, and never hide dealer fees.
No pressure. No dealer fee surprises. Just transparent solar pricing.