Calculate your solar loan's monthly payment and total interest, and see instantly whether your electricity savings cover the payment from day one.
SCReviewed by Sarah Chen, Energy AnalystUpdated October 1, 2026Sources: DSIRE, NREL, IRS
With a solar loan you own the system from day one — including the savings, any state incentives and the home-value increase that leasing forfeits. Photo: American Public Power Association / Unsplash
Updated October 2026 — federal credits have ended. The One Big Beautiful Bill Act (signed July 4, 2025) ended the 30% federal Residential Clean Energy Credit (25D: solar, batteries, geothermal) and the Energy Efficient Home Improvement Credit (25C: air-source heat pumps, up to $2,000) for anything installed after December 31, 2025. Systems completed by Dec 31, 2025 can still be claimed on a 2025 return. Any 30% or $2,000 figure on this page applies only to those installs — our calculators now default to $0 federal credit. What is still available in 2026 →
Quick answerOn a $21,000 solar loan at 7.5% over 15 years, your payment is about $195/month — close to a $160–$200 electric bill. There is no 30% federal credit refund to prepay with on a 2026 install, so a longer term or a smaller system is how you get the payment under your bill. You own the panels, the savings and the home-value increase.
Advertisement
Loan details
$
Most solar loans finance 100% of the system. 2026 installs get no federal credit to pay it down.
%
2026 solar loan APRs typically run 6.5–9.5%.
15 yrs
$
We compare this to your new loan payment.
Monthly loan payment
$195
per month
Total interest
$14,000
Total paid
$35,000
vs. electric bill
+$35
Tip: 2026 installs get no 30% federal credit refund, so check that the loan does not assume a year-1 prepayment.
How this calculator works
1
Enter the loan amount
Usually the full system price; there is no federal credit for 2026 installs.
2
Set APR and term
2026 solar APRs run 6.5–9.5%; terms run 5–25 years.
3
We amortize the loan
Standard amortization gives your fixed monthly payment and total interest.
4
Compare to your bill
We show whether your payment is above or below your current electric bill.
Should you finance solar?
A solar loan lets you go solar with little or no money down and start saving immediately, as long as your monthly savings are close to your loan payment. The catch in 2026: many solar loans are still structured around a year-1 prepayment equal to 30% of the system, which used to come from the federal tax credit refund. That credit ended for systems installed after December 31, 2025, so if you finance 100% of the system today there is no refund coming. Ask the lender whether the payment rises if you skip that prepayment.
Loan vs cash vs lease
Cash — highest lifetime return, no interest, but ties up $15–25k. Best ROI (see the ROI Calculator).
Loan — you own the system (and the savings and home-value bump) while spreading the cost. Watch the APR and any "dealer fees" baked into the price.
Lease/PPA — lowest upfront cost but you don't own the panels. The leasing company may still claim the commercial Section 48E credit (if construction begins by July 4, 2026 or the system is in service by the end of 2027), but lifetime cost is usually highest. Compare in the Lease vs Buy Calculator.
Beware loans advertised at "0.99%" — that low rate is almost always offset by a hidden dealer fee added to the system price (often 15–30%). Always compare the cash price to the financed price before signing.
Questions
Frequently asked questions
How does a solar loan work?
You borrow the full system price and repay it in fixed monthly installments over 5–25 years. You own the panels, so you keep any state incentives and SREC income. The old strategy of using the 30% federal tax credit refund as a year-1 prepayment no longer works for 2026 installs, because that credit ended for systems installed after December 31, 2025. Size your loan on the assumption that there is no lump sum coming.
What APR should I expect on a solar loan in 2026?
Typical 2026 solar loan APRs run 6.5–9.5% depending on credit score and term. Be cautious of advertised sub-2% rates: they usually come with a 'dealer fee' of 15–30% added to the system price, so the cash deal is often cheaper overall.
Is the monthly payment less than my electric bill?
Sometimes, especially on longer terms and in high-rate states. Without the 30% federal credit (which ended after 2025) there is no year-1 refund to shrink the balance, so the payment starts higher than it used to. This calculator compares your payment to your current bill so you can see immediately whether you save from day one or start slightly negative and pull ahead as utility rates rise.
Should I take a 10, 15 or 20-year loan?
Shorter terms mean higher payments but far less total interest; longer terms keep payments below your electric bill but cost more overall. A 15-year term is a common balance. Use the term slider above to see the trade-off in real time.
Can I pay off a solar loan early?
Most reputable solar loans allow penalty-free prepayment, and any lump sum re-amortizes the loan over the remaining balance. Be careful with loans built around a year-1 prepayment: many assumed the 30% federal tax credit refund, which does not exist for systems installed after December 31, 2025. If you cannot make that prepayment, the payment may jump.
Sarah has spent 12 years modeling US residential solar economics, including 4 years contributing to NREL's Distributed Generation Market Demand model. She holds a BS in Mechanical Engineering from UC Berkeley and reviews every calculator and state guide on GreenCalcs against current IRS, DSIRE and EIA data. Read our methodology →
