Solar panel financing: 2026 bank comparison

Solar requires $9,000-18,000 upfront investment. Few pay cash. Banks, installers and leasing companies offer very different terms. The 2026 comparison.

Bank green loan

Wells Fargo Green Loan: APR 7-9%, 7-10 year term. Bank of America Energy: APR 8-10%, 5-10 year term. Sun Federal Credit Union: APR 5.5-7%, 12 year term (member-only). Generally better rates than standard personal loan (10-15%).

Installer financing

Big installers (SunRun, Sunnova, Tesla Solar) offer in-house or partner financing: 0% APR for 12 months, 4.99-7% APR for 5-20 years. Faster (no bank docs) but often pricier long-term. Watch '0% APR' hiding equipment markup.

Solar lease (US common)

SunRun, Sunnova: $0 upfront, they install, you pay fixed monthly fee for 20-25 years. Sounds good but they get the surplus credits, not you. Selling the home: buyer inherits contract. Avoid if you might move.

PPA: Power Purchase Agreement

Company installs panels on your roof, you buy the produced electricity at fixed price for 15-25 years. Zero investment, immediate savings. Popular for businesses, growing for residential. Long-term cost: similar to buy and finance.

Which to choose

Cash available: buy outright, max ROI. Good credit score: bank green loan (best rate). Need $0 upfront, better ROI: installer with good rate. No effort: PPA. Selling home soon: NEVER lease or PPA.

Common traps

1) '0% APR' that adds 30% to equipment cost. 2) Hidden origination fees (1-3% of principal). 3) Prepayment penalty. 4) Mandatory payment protection insurance (1-3% extra annually). Calculate total APR, not just nominal.

Compare with real payback.