Secured solar loans require an asset, such as your home, be used as collateral for the amount of money being borrowed.  This collateral gives the bank a layer of security if you are unable to pay back the loan. Homeowners can attain a secured solar loan through banks and credit unions. This process can take between 4 to 6 weeks to process because there is a thorough authorization process. However, they generally have a lower interest rate than unsecured loans. Homeowners that acquire a secured solar loan also assume less risk than unsecured solar loans because they are using their home as collateral. This collateral means that these loans have lower credit score requirements. 

Property Assessed Clean Energy (PACE) loans are a special type of secured loan that are available to Florida residents. PACE loans are great for homeowners that cannot afford a big upfront energy investment. Unlike other secured loans, PACE loans are paid off through an increase in property taxes. This type of loan is also tied to the property instead of the homeowner. If the homeowner decides to move, the loan will stay with the property and likely sell for more because of the energy upgrades. 

Secured solar loans are great for homeowners that are looking to maximize the benefits of their solar panel system, have enough home equity to pay for their system and are comfortable using their home or another asset as collateral.