• How Solar Loans Work

  • If you've been wondering how solar loans work, watch this short educational video featuring SunPower by Stellar Solar Co-Founder Michael Powers, as he explains who should use a solar loan, why they should use them, and how they work.

    Transcript:

    When it comes to put solar on your house, some people can pay cash, but for those that can’t financing is a good option, which means you’re going to borrow the money.  The only thing to consider is when you pay cash you’re paying for the solar equipment, and when you finance you’re paying for the solar equipment, plus the cost of using the money for a certain amount of time.

    Solar financing really involves a couple of different options. One is the solar loan, which means you’re borrowing money that is specifically allocated for solar. It’s usually an unsecured loan, which means there’s no collateral required. You can borrow that money over a certain period of time, usually it's somewhere between 5-10-15 years to make the monthly payments fairly reasonable. Sometimes it requires money down, sometimes it doesn’t.

    The important idea behind solar financing is that the monthly payment for the loan is less than the monthly bill that you were paying to your power company before getting solar installed.  So you’re saving money, and over time, you’re owning the solar. At a certain point in time the bank is gonna say “Thank you very much you don’t need to send us any more money.” The electric company never says “don’t send us any more money”. That’s when at some point when the loan is paid off you’re just saving money from that point on, it’s like the electricity is free.

    With SunPower solar, there’s a 25-year warranty so certainly the equipment is guaranteed to work for 25 years. If you pay the loan off in 5, 10, or 12 years, after that, for the rest of the time, it’s basically free electricity. As long as the Sun keeps rising, you’re in good shape.