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 May 28, 2026Sources: DSIRE, NREL, IRS
With a solar loan you own the system from day one — including the 30% tax credit and the home-value increase that leasing forfeits. Photo: American Public Power Association / Unsplash
Quick answerOn a $21,000 solar loan at 7.5% over 15 years, your payment is about $195/month — often below a $160–$200 electric bill once you apply the 30% federal credit as a year-1 prepayment. You own the panels, the tax credit and the home-value increase.
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Loan details
$
Most solar loans finance 100% of the system, then you claim the 30% credit separately.
%
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: apply your 30% federal credit as a lump-sum prepayment in year 1 to cut your payment dramatically.
How this calculator works
1
Enter the loan amount
Usually the full system price; the 30% credit is claimed separately.
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 key trick most installers explain poorly: you typically finance 100% of the system, then receive the 30% federal credit as a tax refund the following year. Smart borrowers apply that refund as a lump-sum prepayment, which re-amortizes the loan and drops the monthly payment significantly.
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 tax credit 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 or get the credit; 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 also claim the 30% federal tax credit and any state incentives. Many homeowners use that credit (received as a tax refund) to make a large year-1 prepayment that lowers the monthly payment.
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?
Often, yes — especially on longer terms and after you apply the 30% credit. 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. Applying your 30% federal tax credit as a lump sum in year 1 is the single most effective way to cut your payment, because the loan re-amortizes over the remaining balance.
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 →
