Financing Home Solar Panels

Compass Solar Energy is proud to offer financing for your residential solar projects. For those looking to purchase their solar panel system, solar loans are a great financing option. Solar energy users can finance the entire cost of their system with the many solar energy loans that are available on the market. 

Benefits of Financing Solar Panels

  • Savings on your energy bill will be greater than your loan’s monthly payments which allows you to start saving as soon as your solar system is installed
  • Purchasing your system outright will allow you to be eligible for financial incentives such as the solar investment tax credit (ITC), net metering, and the residential solar system tax exemption 
  • Choosing a solar loan means electricity savings of up to 70% percent 
Fixed rates as low as 0-0.49% APR.
Maximum savings with low monthly payments.

Residential Solar Panel Loans and Mortgages


Home solar financing can also be done through a home equity loan or energy efficiency mortgage from the government.  Fannie Mae and the U.S. Environmental Protection Agency offer home loans for solar systems through their Energy Star program.

What are the two different types of solar loans?

When looking to finance your home solar system, there are two different types of solar loans that can be used: secured solar loans and unsecured solar loans. Both options have their own advantages and disadvantages. 

Secured Solar Loans

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. 

Unsecured Solar Loans

Unsecured solar loans are another option to finance solar panel systems and do not require any collateral from the lender. This option is great for homeowners that do not have enough home equity to qualify for a secured solar loan or are not comfortable using their home or another asset as collateral. Homeowners can be approved for an unsecured solar loan in minutes. The penalty for defaulting on unsecured solar loans is smaller than secured solar loans because the lender cannot foreclose on your home. However, unsecured solar loans are riskier and have higher interest rates.