⚠️ Why this matters: Most homeowners shopping solar don't learn the lender's name until after they sign. By then it's too late to negotiate the dealer fee (15–30% of the system cost — baked into the gross price), the loan structure (re-amortizing loans assume a 30% federal credit paydown that homeowners no longer get in 2026), or the lease/PPA escalator (often 2.9–3.9% annually compounding to 50%+ over 25 years). Always ask "Which lender is this?" and demand the dealer-fee disclosure on every quote.
How solar financing actually works in 2026
| Product | Who owns the system | Who claims federal credit | Monthly bill | Best for |
|---|---|---|---|---|
| Cash purchase | Homeowner | Nobody (Section 25D residential expired Dec 31, 2025) | None | Highest lifetime savings; want to own the asset |
| Solar loan (secured or unsecured) | Homeowner | Nobody (residential) | Fixed monthly for 10–25 years | Want ownership without paying cash; can absorb dealer-fee markup |
| Solar lease | Third-party (lender / installer subsidiary) | Lender claims commercial Section 48E; some passes through | Fixed monthly with annual escalator (typical 1.9–3.9%) | $0 down, no maintenance responsibility, don't mind not owning |
| Solar PPA | Third-party | Lender claims 48E | Pay $/kWh produced (typically with annual escalator) | Same as lease, but pay-per-production |
The dealer fee that's baked into your loan price
Solar loans are advertised at low promotional APRs (sometimes "0.99%" or "0% for 18 months"). The trick: the lender pays the installer a fee — called a dealer fee — that gets added to the cash price. So a $24,000 cash system quotes for $30,000–$32,000 financed.
- Typical 2026 dealer-fee rates: 15–30% of cash price. Lower APR → higher dealer fee. 25-year terms typically have higher fees than 10-year terms.
- How to spot it: Ask the installer for the cash price and the financed price for the identical scope of work. The difference is the dealer fee.
- How to avoid it: Pay cash, use a HELOC, or use an unsecured personal loan from your own bank/credit union or LightStream.
Re-amortizing loans — the 2026 payment-shock trap
⚠️ Re-amortization clauses assume a 30% federal credit paydown by month 18. Most major solar loans (GoodLeap, Sunlight, Mosaic, Dividend) were structured during the 2017–2025 era when Section 25D gave homeowners a 30% credit refund. The loan was structured around an assumption that the homeowner would apply that refund as a principal paydown by month 18. If the homeowner doesn't make that paydown, the loan re-amortizes — the monthly payment jumps significantly (often 30–40% higher) for the remaining term. Section 25D expired December 31, 2025, so 2026 homeowners have no federal credit to apply. The payment will jump unless they pay the assumed 30% out of pocket.
The major solar lenders in 2026
GoodLeap (formerly Loanpal) Loans Re-amortization risk
What they offer: 25-, 20-, 15-, 12-, 10-year loans with promotional APR (0.49%–6.99%). Dealer fee 15–30% baked into financed price.
⚠️ Re-amortization: GoodLeap loans typically include a re-amortization clause assuming a 30% paydown at month 18. This was designed around the (now-expired) Section 25D residential federal credit. 2026 homeowners signing GoodLeap loans without making that paydown will see monthly payments jump significantly when the loan re-amortizes.
⚠️ Class action and complaints: CFPB complaints filed against GoodLeap related to disclosure practices and dealer-fee transparency. Several state-level investigations underway as of 2025.
Verdict: Major incumbent — ubiquitous because installers earn high dealer-fee margins. Demand cash-vs-financed price comparison.
Sungage Financial Loans
✅ Praise: Better-rated for transparency than GoodLeap. Dealer fees disclosed earlier in the underwriting process. EnergySage Marketplace partner. Some installers offer a true flat-amortization Sungage loan (no re-amortization trap).
Verdict: Generally a less-predatory loan vehicle than GoodLeap or Mosaic. Still has dealer fees — not free.
Mosaic Loans Re-amortization
What they offer: Solar + battery loans with similar product structure to GoodLeap. Loan terms 10–25 years.
⚠️ Re-amortization: Same caveat as GoodLeap — many Mosaic loans assume a 30% paydown at month 18. Confirm clause status in writing.
Verdict: Mainstream alternative to GoodLeap. Acquired Sunlight Financial assets in 2024.
Sunlight Financial Loans (legacy) Bankruptcy 2024
⚠️ Sunlight Financial filed Chapter 11 in October 2023 — sold to Mosaic in 2024. Existing Sunlight loans are being serviced by Mosaic or successor entities. If a 2026 quote shows "Sunlight Financial" as the lender, the salesperson is using outdated paperwork — ask who the actual current lender is.
LightStream (TruIst Bank) Unsecured personal loans No dealer fee
✅ Best-of-class for cost-conscious buyers: LightStream offers unsecured personal loans for solar with NO dealer fee. Rates from ~6.99% APR for 7-year terms (verify current rates) for high-credit borrowers. The cash price IS what you finance — no 25% markup.
✅ HELOC alternative: Many homeowners get a HELOC at 7–9% APR, then pay the installer the cash price. No dealer fee. Tax-deductible interest in some cases.
Verdict: If you have good credit, paying cash via personal loan or HELOC is almost always cheaper over the loan's lifetime than a dealer-fee solar loan, even at higher quoted APR. Math the dollar cost, not the APR.
Dividend Finance (Fifth Third Bank) Loans
What they offer: EmpowerLoan and PowerSwitch loan products for solar + battery + roofing combinations. Bank-affiliated lender (more conservative underwriting).
Verdict: Bank backing means slightly more disciplined disclosure. Still uses dealer-fee structure.
GreenSky (Goldman Sachs) Loans
⚠️ Watch for deferred-interest structures: If you don't pay off the principal within the promotional period, interest is charged retroactively from day one. This can be brutal on solar loans where the principal is $25K+.
Verdict: Reasonable for shorter terms (5–7 years) where you can pay off in the promo window. Risky for full-term solar financing.
Sunrun Leases PPAs
What they offer: Sunrun BrightSave (lease) and BrightSave Monthly (PPA). Annual escalator typical 0%–3.9% — insist on the 0% escalator option.
⚠️ Lease/PPA caveats: System ownership stays with Sunrun for 20–25 years. Lifetime savings lower than ownership. Home resale gets more complicated — the buyer must qualify for and assume the lease.
✅ Praise: Largest, most-financially-stable lessor; transferability and warranty work generally honored. If you don't want to own or can't use the federal credit, Sunrun is reasonable.
Sunnova Leases PPAs Loans Bankruptcy 2025
⚠️ Sunnova filed Chapter 11 in 2025. Existing customers' systems and lease/PPA contracts are being serviced through bankruptcy proceedings or successor entities. New origination paused.
Verdict: Avoid for new contracts in 2026. If you're an existing Sunnova customer, monitor warranty/service status carefully.
SunPower (legacy) Leases (legacy) Bankruptcy 2024
⚠️ SunPower Corp filed Chapter 11 in August 2024. Existing leases are being serviced by Sunlight/Mosaic successor entities + Maxeon (the SunPower-branded panel manufacturer, separate company). Maxeon panel warranties remain active for new and existing systems — that warranty is honored separately. But the "SunPower" lease/financing entity is in bankruptcy.
Tesla Energy Loans Leases No dealer fee
What they offer: Direct Tesla loan (current rates around 4.99% APR for 25-year term — verify) and Tesla Subscription/Lease in some markets. Tesla owns the financing — no third-party dealer fee. Tightly integrated with Tesla Powerwall + mobile app.
✅ Praise: No dealer fee — financing markup is much lower than third-party. Direct relationship with Tesla means warranty work flows through one entity.
Verdict: Strong loan vehicle for Tesla equipment buyers. Limited equipment flexibility — Tesla won't finance non-Tesla panels or batteries.
Palmetto / LightReach Lease
What they offer: LightReach lease — no upfront cost, Palmetto owns and maintains the system, includes a 90% production guarantee.
Verdict: Reasonable lease product with production guarantee. Same lease caveats apply.
PosiGen Leases PPAs Income-qualified focus
✅ Praise: PosiGen explicitly serves low-to-moderate income (LMI) households — underwriting takes income/rent ratio into account, not just credit score. Includes energy-efficiency upgrades bundled with solar. Mission-driven, B-Corp.
Verdict: If you're LMI and don't qualify for a traditional solar loan, PosiGen is one of the few lenders explicitly designed for you.
PACE programs (HERO, Ygrene, Renew Financial, Renovate America) Property-tax loans Senior-lien risk
⚠️ Major buyer-protection issues with residential PACE:
- PACE loans become a senior lien on your property tax — ahead of your mortgage. This complicates refinancing and home sales (Fannie Mae and Freddie Mac generally won't buy mortgages with PACE-encumbered property).
- Multiple class actions over predatory disclosure practices.
- Long terms (20–30 years) at relatively high APRs (6–8%+).
- California passed AB 1284 (2018) tightening PACE underwriting after widespread complaints.
Verdict: Avoid PACE for residential solar in 2026 unless you've thoroughly researched the implications for refinancing/selling your home. A traditional solar loan or HELOC is almost always a better choice.
Service Finance Company (SFC, Wells Fargo) Home-improvement loans
What they offer: Home-improvement loans (solar, HVAC, roofing). Wells Fargo subsidiary — bank-grade underwriting.
EnerBank USA / Regions Bank Home-improvement loans
What they offer: Home-improvement loans (acquired by Regions Bank in 2021). Conservative bank product.
Side-by-side comparison table
| Lender | Products | States | Dealer fee | Re-amortization? | Status |
|---|---|---|---|---|---|
| GoodLeap | Loans | 50 | 15–30% | Yes (typical) | Active |
| Sungage Financial | Loans | 50 | 10–25% | Sometimes | Active |
| Mosaic | Loans (solar + battery) | ~45 | 15–30% | Yes (typical) | Active (acquired Sunlight) |
| Sunlight Financial | Loans (legacy) | — | — | — | Bankrupt 2024 |
| LightStream (TruIst) | Unsecured personal loans | 50 | None | No | Active |
| Dividend Finance (Fifth Third) | Loans | 50 | 10–25% | Sometimes | Active |
| GreenSky (Goldman) | Home-improvement loans | 50 | Varies | Deferred-interest variants | Active |
| Sunrun | Lease + PPA | ~22 markets | N/A (lessor) | N/A | Active |
| Sunnova | Lease + PPA + loan | ~45 (legacy) | — | — | Bankrupt 2025 |
| SunPower (legacy) | Lease (legacy) | — | — | — | Bankrupt Aug 2024 |
| Tesla Energy | Direct loan + lease | Most states | None | No | Active |
| Palmetto / LightReach | Lease (90% production guarantee) | ~12 states | N/A | N/A | Active |
| PosiGen | Lease + PPA (LMI focus) | LA, MS, CT, NJ, NY, RI, FL | N/A | N/A | Active |
| PACE (HERO/Ygrene/Renew Financial) | Property-tax loan | CA, FL, MO | N/A | N/A | Active — caution |
| Service Finance (Wells Fargo) | Home-improvement loans | 50 | Varies | Sometimes | Active |
| Regions / EnerBank | Home-improvement loans | 50 | Varies | Sometimes | Active |
What to ask before signing any solar finance contract
- "Which lender is this?" Get the lender name in writing on every quote.
- "What's the cash price for this exact same scope of work?" The difference between cash and financed is the dealer fee.
- "Does this loan re-amortize?" If yes, what triggers it? The #1 question for 2026.
- "What's the lease/PPA escalator?" If non-zero, calculate compound escalation over 25 years (a 2.9% escalator doubles by year 25).
- "What happens if the lender goes bankrupt?" Where is the lease/PPA contract held? What's the transferability mechanism?
- "What's the buyout option at year 7? Year 15? End of term?" Critical for lease/PPA if you sell.
- "Is this a senior lien on my property?" Yes for PACE, no for everything else.
- "What's the all-in dollar cost over the loan term?" APR can be deceptive; total dollars paid is the real comparison.
The smart 2026 financing playbook
- Cash or HELOC capacity: Pay cash or use HELOC. Avoid dealer fees, own the system, lowest lifetime cost.
- Good credit (720+) but want to finance: Use LightStream or your bank/credit union direct loan. Pay the cash price. No dealer fee.
- Need 25-year term to keep monthly payment low: Sungage with flat-amortization, OR Tesla direct loan if you're a Tesla customer. Avoid GoodLeap/Mosaic re-amortizing structures.
- Don't want to own: Sunrun lease with 0% escalator. Tesla lease where available. Compare to Palmetto LightReach.
- LMI: PosiGen lease/PPA in eligible states.
- Avoid: Re-amortizing GoodLeap/Mosaic loans without understanding the trigger; PACE for residential; deferred-interest GreenSky if you can't pay off in promo period; new contracts with bankrupt entities.
Got a financed solar bid? Check the lender details against this list.
Upload your proposal — the analyzer flags re-amortization clauses, dealer-fee discrepancies, and lender bankruptcies before you sign.
Analyze My Bid →Frequently asked questions
Why do solar loans have dealer fees but car loans don't?
Dealer-fee structures exist because the solar industry built a financing ecosystem during the 2017–2025 federal-credit era where the homeowner's 30% credit refund subsidized the financing math. With Section 25D expired in 2026, the math no longer balances — but the dealer-fee structure persists because installers still earn margin on it.
What happens to my SunPower / Sunnova system if the parent company is bankrupt?
Equipment warranties (panels, inverters, batteries) are typically held by the manufacturer separate from the financing entity, so those tend to stay valid. The financing/lease contract may be sold to a successor servicer.
Can I refinance a solar loan into a HELOC later?
Yes, and it's a common move. The HELOC interest rate is often comparable, the principal is lower (you pay off the inflated solar-loan principal with the HELOC), and HELOC interest may be tax-deductible.
Are 0.99% APR solar loan offers real?
The advertised rate is real — but the dealer fee makes the all-in cost higher than a 6.99% LightStream personal loan in many cases. Always compare total dollars paid over the loan term, not the APR.