Financing Options with Project Solar

Project Solar does not currently offer financing options directly in most areas. In these areas, financing will need to go through a third party. 

In parts of Texas, Florida, and Arizona we can offer some financing options. For more information, contact our Onboarding Team after deposit--they can provide rates and help you get an application submitted. 

This article will outline the following topics:

Financing a DIY Project

Project Solar's financing partners cannot finance DIY projects, so DIY customers will need to pay cash or finance their project with a third party.

This is mostly due to the fact that DIY systems will require payment prior to the shipment of equipment, which does not line up with financing payment schedules.

In the past, some customers have opted to go with a financing company called LightStream for DIY projects or short-term financing alternatives. 

Keep reading into the next section for more information on financing with a third party.

Financing with an Independent Lender

Project Solar accepts any independent financing alternatives.

It's important to note that we treat independent financing as a cash payment on our end, so you will be required to follow the cash payment schedule that is outlined in your contract. 

This unaffiliated list of solar financing companies can be a great resource when shopping around: Solar Loan Providers.

I's also a good idea to check with your own bank or credit union; they may have resources available to finance your system, particularly if you are considering a home equity loan or HELOC. To read more about home equity financing options, check out this article from EnergySage.

Concerning the 30% Federal ITC & Solar Financing

The Federal Solar Investment Tax Credit (ITC) is a tax incentive that can reduce your tax liability by up to 30% of your project's total price.

For more information on the Federal ITC for Solar, check out our article titled The Federal Investment Tax Credit for Solar or this page from the Office of Energy Efficiency and Renewable Energy. As always, Project Solar does not offer tax advice, and we recommend speaking with a tax professional for the full information in regards to tax incentives. 

Most financing companies that include options for this federal incentive will structure their loans in one of two ways:

Automatic re-amortization loan structures

Some lenders will automatically re-amortize your loan after you've paid down the 30% credit, or after a specific amount of time.

For example: many companies will re-amortize the loan after ~14-18 months or after you've paid the incentive difference--whichever comes first.

If you use the incentive to pay down your loan, the loan will be re-amortized to keep your monthly payment lower and avoid excess interest.

If you choose to not pay the incentive amount, the loan will be re-amortized and your future payments increased to cover the difference.


Solar combination loans

Other companies will use a solar combination loan. A solar combination loan finances the 30% federal incentive and the remaining 70% cost separately. 

70% of the loan is financed for a longer term (~10-25 years), while the remaining 30% is financed for a short term (12-18 months) until you receive your tax credit. Many customers choose to pay the short-term loan in one lump sum. 

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