A solar loan is a specific type of financing designed to help homeowners or businesses install solar energy systems.

These loans are typically used to cover the upfront costs of purchasing and installing solar panels, inverters, and related equipment. Solar loans can be secured by the solar equipment itself or unsecured based on the borrower's creditworthiness.

Interest rates for solar loans can vary, often influenced by credit score, loan term, and the lender's policies. Loan terms generally range from 3 to 10 years, impacting monthly payments and total interest costs. Some lenders offer options for fixed or variable interest rates. Down payments may be required upfront, depending on the lender and loan terms. Lenders consider factors like credit history and the property's value when determining eligibility and loan terms.

It's essential to explore various loan offers, understand the total cost of the solar system, including incentives and rebates, and ensure the loan aligns with the expected savings from reduced energy bills before committing to a solar loan.