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What Are Current Solar Loan Interest Rates?
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What Are Current Solar Loan Interest Rates?
Last updated: May 2026 · MySolarLoanCompanion.com/learn/
Solar loan APRs in 2026 range from 6% to 36%, with most qualified borrowers receiving 6.49%–16.99%. Credit union rates average 5.94%–9.19% — the lowest available without dealer fees. Advertised rates of 1.99%–3.99% from solar-specific lenders reflect dealer fee buy-downs that inflate the total loan balance by 15%–30%.
Current APR Ranges by Lender Type — May 2026
| Lender Type | APR Range | Min Credit Score | Key Caveat |
|---|
| Credit Unions | 5.94%–9.19% | 620 | Best rates available; membership required |
| LightStream (Truist) | 6.49%–24.89% | 660 | No dealer fees; no origination fee; cleanest pricing |
| SoFi | 7.74%–35.49% | None published | General personal loan; no solar-specific dealer fee structure |
| Mosaic | Advertised 3.99%+; effective 8%–14% | 640 | Dealer fee of 15%–25% embedded in loan balance |
| GoodLeap | Advertised 1.99%+; effective 5%–9% | 640 | Dealer fee of 20%–30% embedded in loan balance |
| Sunlight Financial | Varies by installer | 640 | Dealer fee model; ask for cash-equivalent price |
| CT Green Bank / MichiganSaves | 0%–7.90% | Varies | Income-qualified state programs; limited availability |
Sources: NerdWallet solar loan comparison May 2026; NuWatt Energy lender analysis March 2026; LightStream published rate table May 2026; Star One CU May 2026; SolarTechOnline rate guide
Key Details
- The advertised rate is not the effective rate — Solar-specific lenders (Mosaic, GoodLeap, Sunlight, Dividend) advertise rates as low as 1.99%–3.99%. Your installer pays a dealer fee of 15%–30% to buy down that rate, and that fee is added to your loan balance. A $26,000 system with a 22% dealer fee becomes a $31,720 loan — before interest. Minnesota's AG sued GoodLeap, Sunlight, Mosaic, and Dividend over this practice in 2024.
- Credit unions offer the cleanest pricing — APRs of 5.94%–9.19% with no dealer fees, no origination fees, no inflated loan balances. The trade-off: membership eligibility and typically smaller loan limits ($50,000–$100,000).
- LightStream is the best non-credit-union option for strong credit — No dealer fees, no origination fees, APRs from 6.49%, loans to $100,000. Requires 660+ credit. Funded as a standard personal loan — the dealer fee mechanism does not apply.
- State programs are worth checking first — Connecticut Green Bank Smart-E Loan: 0%–6.99% APR. Michigan Saves: 4.44%–7.90% APR. Massachusetts MassSave HEAT Loan: 0% for income-qualified buyers. These programs operate outside the dealer fee ecosystem entirely.
- Improving credit from 680 to 750 saves $5,000–$8,000 — On a typical $29,000 system over 15 years, a 3–4 point APR reduction from an improved credit score eliminates $5,000–$8,000 in total interest cost.
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