Solar loans typically have interest, and the loan amounts and terms vary based on your creditworthiness and the companies that offer financing.
While switching to solar energy appeals to many, the high initial investment makes it tough to pay for the upgrade. Luckily, Renovate works with local, reputable solar contractors, offering competitive, flexible financing options that fit your budget and project.
To harness the sun's power, you'll need to choose a type of solar panel to do the work. The best panel type for you will depend on your efficiency needs, budget, and aesthetic preferences.
Our network of reputable contractors can evaluate your home’s setup to determine your options for solar panels based on your energy needs and budget.
Solar panel costs range from $18,000 to $43,000, depending on the size of the system, the power needed, and your location. Most solar installers charge less per watt for larger systems. The average cost per watt ranges from $2 to $3.75 per kilowatt.
| State | Typical installation cost* | Average cost per watt | Estimated payback period** | 25-year savings*** |
| Alabama | 37475.0 | 3.34 | 10.5 | 65922.0 |
| Alaska | 23088.0 | 2.41 | 9.5 | 54668.0 |
| Arizona | 19440.0 | 2.16 | 7 | 59661.0 |
| Arkansas | 29877.0 | 2.67 | 9.5 | 67139.0 |
| California | 18105.0 | 2.47 | 5 | 106870.0 |
| Colorado | 28088.0 | 3.03 | 9 | 53986.0 |
| Connecticut | 26670.0 | 2.96 | 6 | 83759.0 |
| Delaware | 25274.0 | 2.49 | 10 | 63870.0 |
| Florida | 24403.0 | 2.27 | 10.5 | 56077.0 |
| Georgia | 30494.0 | 2.73 | 10 | 57429.0 |
| Hawaii | 27680.0 | 3.46 | 6 | 64565.0 |
| Idaho | 28944.0 | 2.69 | 10 | 71010.0 |
| Illinois | 31068.0 | 3.07 | 11 | 48565.0 |
| Indiana | 34131.0 | 3.1 | 12 | 56472.0 |
| Iowa | 31793.0 | 3.12 | 10 | 46588.0 |
| Kansas | 32167.0 | 3.12 | 10.5 | 60286.0 |
| Kentucky | 31313.0 | 2.73 | 11.5 | 54204.0 |
| Louisiana | 32142.0 | 2.93 | 11 | 54636.0 |
| Maine | 29267.0 | 3.27 | 10.5 | 64522.0 |
| Maryland | 28504.0 | 2.8 | 9 | 64703.0 |
| Massachusetts | 27158.0 | 3.28 | 5 | 87689.0 |
| Michigan | 30902.0 | 3.15 | 11 | 53663.0 |
| Minnesota | 31209.0 | 3.09 | 11.5 | 59279.0 |
| Mississippi | 36110.0 | 3.14 | 12 | 59530.0 |
| Missouri | 31842.0 | 2.9 | 12 | 55374.0 |
| Montana | 32116.0 | 2.8 | 10 | 67246.0 |
| Nebraska | 20787.0 | 2.24 | 11.5 | 53725.0 |
| Nevada | 20768.0 | 2.2 | 8 | 41459.0 |
| New Hampshire | 29870.0 | 3.33 | 7.5 | 69087.0 |
| New Jersey | 25623.0 | 2.7 | 4 | 76285.0 |
| New Mexico | 24571.0 | 3.13 | 6 | 68335.0 |
| New York | 27291.0 | 2.96 | 6 | 75242.0 |
| North Carolina | 26829.0 | 2.56 | 9.5 | 62935.0 |
| North Dakota | 33275.0 | 2.42 | 12 | 58265.0 |
| Ohio | 29127.0 | 2.66 | 11.5 | 52568.0 |
| Oklahoma | 26900.0 | 2.37 | 11 | 65916.0 |
| Oregon | 28965.0 | 2.65 | 12.5 | 52903.0 |
| Pennsylvania | 28679.0 | 2.82 | 9.5 | 58076.0 |
| Rhode Island | 29061.0 | 3.28 | 2 | 60631.0 |
| South Carolina | 26548.0 | 2.57 | 8.5 | 62231.0 |
| South Dakota | 24115.0 | 2.39 | 11 | 54751.0 |
| Tennessee | 39120.0 | 3.26 | 12.5 | 51774.0 |
| Texas | 21672.0 | 2.1 | 7.5 | 61774.0 |
| Utah | 29158.0 | 2.72 | 11 | 53135.0 |
| Vermont | 31427.0 | 2.87 | 10.5 | 60802.0 |
| Virginia | 32964.0 | 2.68 | 13 | 59116.0 |
| Washington | 20400.0 | 3.0 | - | 63114.0 |
| Washington, D.C. | 28737.0 | 3.09 | 10 | 63114.0 |
| West Virginia | 31806.0 | 3.1 | 10.5 | 54553.0 |
| Wisconsin | $31,806 | $3.10 | 10.5 years | $54,553 |
| Wyoming | $43,165 | $3.76 | 9 years | $85,447 |
Local and state incentives can make a huge difference in the total solar panel system cost. For example, some local governments have solar tax incentives that can reduce the price of solar panels significantly. For example, the federal solar tax credit, also known as the Investment Tax Credit (ITC), will pay for 30% of the total cost of a new solar PV system. Other incentives may also include referral programs through your local solar panel installation company.
While the upfront cost of installing panels may be high, the incentives can help make it more affordable. As always, discuss these programs and tax incentives with your contractor before moving forward.
Like any hard-working home appliance, solar panels are not immune to malfunctions and damage. Here are a few common solar panel problems Renovate’s qualified contractors may be able to solve for you:
There are a few things to think about before installing your solar system. The qualified contractors in Renovate’s network have experience installing residential panels and may be able to walk you through the following important considerations.
To determine the energy requirements of your solar panels, consider your household’s energy usage. Most solar installation companies can help you determine local sunlight hours and the necessary wattage, but it’s a good idea to come up with a rough estimate yourself before contacting a company. Then, discuss with your contractor to decide if your desired wattage can keep up with your energy consumption.
The integrity and form of the roof are essential when it comes to installing a solar system. Before installing a solar system on the roof, you must consider its design and inspect the current condition. Confirm whether the roof structure can carry the weight of the panels and prepare to repair any damage or degradation that would make installation difficult. Roofs with steep pitches or angles may also impact the available sunlight and, in turn, the panel’s efficiency.
Solar panels require direct sunlight for maximum performance. So, it’s best to determine how much direct sunlight your roof receives before paying for a system. Shadier regions from trees, adjacent structures, or lighting changes caused by seasons can decrease panel efficiency. Reputable solar panel installation companies, like the ones in Renovate’s network, will visit the home to ensure it’s a candidate for solar before moving forward with the project.
While solar panels are generally easy to maintain, they do require occasional cleaning and repairs. Ask the installation company about how you should maintain and inspect the panels, so you can budget and plan accordingly. Some companies may offer a maintenance plan.
Financing your solar panel installation can make it easier to afford the project. Here are a few additional benefits of using Renovate to secure solar financing:
It’s free to use our form to request to connect with reputable contractors in your area who may offer solar financing options. Renovate will reference its network of pre-screened professionals and show you affordable payment plans for solar financing without a high upfront cost.
Renovate aims to connect homeowners with varying credit profiles to reputable, pre-screened solar panel contractors and direct financing options. Our extensive, inclusive lender network taps into more opportunities for solar financing so that you can get started on our panels immediately.
With Renovate, you may get a pre-qualification offer in minutes. Submit your request using our online form, and we’ll try to connect you with contractors who offer financing for solar panels so you can power your home with renewable energy quickly.
Solar financing allows homeowners to finance their solar panel systems over an extended period rather than requiring full payment upfront. Solar financing options include solar loans, credit cards, home equity lines of credit (HELOC), and private financing through solar companies.
The average monthly utility cost depends on the size of the solar system, location, and electricity usage. On average, most homeowners select financing options where their payments will match their expected monthly savings in electricity bills so that their transition to solar will be affordable. Solar panels are financed in many ways, but monthly payments can make solar power a viable alternative for more families.
A reasonable interest rate for a solar loan would usually be 3–8%, depending on your creditworthiness, the loan provider, and the terms. Secured loans tend to offer lower rates, especially when borrowers have good credit, while unsecured loans usually come with slightly higher rates. Lower interest rates help keep the monthly solar panel payment affordable, so it’s important to consider several solar financing options and compare offers to keep your costs down.
While a high credit score can help you qualify for better terms, it’s not always a requirement. Those with average credit can still access funding to pay for solar panels; however, loan terms and rates will be higher than what’s given to homeowners with better credit. Many lenders will approve solar loans for homeowners with a wide range of credit profiles, and prequalifying can help you compare offers without a hard credit check.
The typical repayment period for solar panel financing is between 5 and 20 years. Loans with shorter terms have higher monthly payments but lower overall interest rates, while loans with longer repayment terms have lower monthly payments but higher interest rates.
