The solar energy industry has witnessed remarkable growth in recent years, influenced by growing concerns about climate change as well as the push for sustainable energy sources. Although there are many great reasons to switch to solar, some barriers to entry still remain. In this article, we highlight the top 12 solar financing companies in the USA and Europe. These companies offer innovative solutions to make solar energy more accessible and affordable.
As demand for solar power systems continues to grow, financing options have become crucial for homeowners and businesses looking to make the change to renewable energy.
What Is Solar Financing?
Although solar installations are becoming dramatically cheaper, transitioning from traditional energy systems to solar-based options can initially prove expensive.
In its simplest terms, solar financing companies offer loans much like any other finance company. Solar financing provides businesses and individuals with cost-effective financing options, making the adoption of clean energy easier and more attainable.
Here are some common solar financing options:
Solar Loans
Like a traditional loan, borrowers receive funds to cover the cost of purchasing and installing solar energy systems. The loan is repaid over a specified period, typically with low, fixed interest rates.
Solar Leases
In a solar lease, the homeowner or business leases the solar panels from a solar company. The company installs and maintains the panels, and the customer pays a fixed monthly lease fee. This option allows users to benefit from solar energy without owning the panels outright.
Power Purchase Agreements (PPAs):
Under a PPA, a third-party solar provider installs and maintains the solar panels on the customer’s property. The customer agrees to purchase the electricity generated by the panels at a predetermined rate. PPAs are common for commercial properties.
Home Equity Loans or Lines of Credit
Homeowners can use their residential equity to finance solar installations. By borrowing against the value of their home, they can cover the upfront costs of solar panels.
Green Mortgages
Many governments provide incentives, tax credits, or grants to encourage solar adoption. Greem Mortgages can greatly reduce the overall cost of installing solar panels.
Keep in mind that the best financing option depends on individual circumstances, including credit history, budget, and long-term goals. Exploring different options and understanding their terms will help you decide on the financing option that best suits you.
Why Use Solar Financing Companies?
When making the choice to move to solar energy, the initial investment price can often make it difficult to appreciate the long-term savings. Solar financing companies allow for flexible and affordable upfront fees, helping hesitant adopters overcome this barrier to entry. Financing can help homeowners to incorporate the cost into monthly, budgeted payments rather than expensive lump sum outlays.
Additionally, Solar financing options often align with government incentives and tax credits. For instance, the Investment Tax Credit (ITC) in the United States allows homeowners and businesses to claim a percentage of their solar installation fees as a tax credit.
Let’s look at some of the best US companies offering solar financing in 2024:
Top 6 Solar Financing Companies (USA)
Established in 2011, Mosaic offers loans to homeowners through its network of solar installers and contractors nationwide. According to GTM Research, Mosaic is the country’s largest specialized solar loan provider, available in most states of the US.
Mosaic
Sunlight Financial
Sunlight Financial partners with solar and home improvement contractors to help homeowners fund home upgrades with affordable loan options. They act as intermediaries between contractors, capital providers (who lend the money), and solar installers (who carry out the installations).
By partnering with solar companies, Since its founding in 2014, Sunlight Financial has become one of the top solar financing options in the U.S., having funded over $4 billion worth of loans to date.
- Competitive Interest Rates: Mosaic offers competitive interest rates on their 5-year, 10-year, 15-year, 20-year, and 25-year loans, ranging from 3.99% to 10.59%.
- No Prepayment Penalties: Mosaic does not charge prepayment penalties, allowing homeowners to pay off their loans early without incurring additional fees.
- Soft Credit Checks: Mosaic uses soft credit checks during pre-qualification, which does not affect the customer’s credit score.
- Flexible Loan Structures: Mosaic offers three loan structures to fit various solar energy needs: PowerSwitch ZERO, PowerSwitch CHOICE, and PowerSwitch PLUS. These structures cater to homeowners who want zero payments for 12 months, those who want to add solar energy systems and/or battery storage, and those who want to add solar energy projects while making other home improvements.
- Broad Credit Score Lending: Mosaic has originated approximately $1 billion in solar loans to date, lending to homeowners with variable credit scores across multiple states. This approach helps mitigate boundaries preventing homeowners from profiting from ownership of a home solar system.
GoodLeap
GoodLeap offers a variety of solar financing options, including loans, leases, power purchase agreements, and crowdfunding through its GoodFund platform. In addition to standard installment loans, GoodLeap also offers Flexiplay loans (which provide flexible repayment terms) and an option they call a ‘Go Green Refi’, allowing borrowers to refinance their mortgage to bundle their solar installation.
- Partner Network: GoodLeap partners with a network of solar installers, ensuring that customers can access professional installation services for their solar panel systems.
- Integrated Tracking: Offers integrated tracking for solar installers, allowing them to track the status of loans through every significant milestone directly in the Solo app.
- Secured & Unsecured Loans: GoodLeap offers solar loans that can be secured or unsecured. Secured loans often have lower interest rates but require collateral, while unsecured loans have higher interest rates but do not require collateral.
- Easy Application Process: GoodLeap offers an instant approval process for financing decisions, allowing homeowners to apply for and receive instant financing decisions.
- Loan Terms: GoodLeap offers solar loans with various terms, typically ranging from 5 to 25 years. Loan terms can affect the monthly payment amount and the total interest paid over the life of the loan.
- Expansion and Acquisition Plans: GoodLeap is actively seeking to merge or acquire other solar-financing companies to expand its market presence and offerings. This strategy has led to a $12 billion valuation for the company.
SoFi
SoFi is an internet lending marketplace that provides unsecured, locked-in individual loans in all states of America.
Since its founding in 2011, SoFi has made more than fifty billion dollars in loans. It distinguishes itself by enabling large loan sums and making long loan durations available.
We choose Sofi solar panel financing for our top list because they don’t charge origination fees, prepayment penalties, or any hidden fees.
- No Fees: SoFi typically does not charge fees for their loans, aside from the interest, which can help borrowers save on borrowing costs.
- Generous Loan Amounts: SoFi provides generous loan amounts, ranging from $5,000 to $100,000, allowing borrowers to finance different needs, from small expenses to larger projects.
- Flexible Repayment Terms: Borrowers can choose from various repayment terms, typically 24 to 84 months, offering flexibility in managing loan payments.
- Borrower Perks: SoFi offers various benefits to borrowers, such as unemployment protection, financial planning services, member experiences, and discounts on estate planning.
- Co-Borrowing Option: SoFi allows borrowers to add a co-borrower to their loan application, improving the chances of qualifying for a loan, especially for those with lower credit scores.
LighStream
LightStream offers competitive interest rates on solar loans. These loans are unsecured, meaning they don’t require collateral or home equity. This company’s loans are among the best for borrowers with strong credit scores. LightStream also offers one of the longest repayment options possible on solar loans, which can help customers secure the lowest possible monthly payment.
- No Fees: Lightstream Financial does not charge any fees for its loans, including origination, application, or early repayment fees.
- Loan Amounts: Lightstream Financial offers loan amounts ranging from $5,000 to $100,000, which can be used to finance solar projects of various sizes.
- Quick Funding: Lightstream Financial offers quick funding, with loans often funded the same day the application is approved.
- Loan Uses: Lightstream Financial offers loans for more than 30 purposes, including solar panel financing.
- Customer Service: Lightstream Financial is known for its excellent customer service, with a customer service team available to assist borrowers with any queries.
Energy Loan Network
Unlike other dedicated financial institutes, Energy Loan Network is an online lending platform that connects homeowners with lenders offering loans for energy-efficient home improvements like solar panels.
You can access various loan options tailored to your specific needs and financial situation with just a single application.
Overall, it is a convenient marketplace for solar financing, but borrowers should carefully compare lenders and loan details before proceeding.
- Credit Union Partnerships: Energy Loan Network collaborates with credit unions to offer customers funding for their energy efficiency improvements, leveraging the resources and networks of credit unions in the financing process.
- Home Energy Projects: Energy Loan Network focuses on funding home energy projects, allowing homeowners to access financing for energy-efficient upgrades and improvements.
- Monthly Payments: Energy Loan Network enables customers to pay off their energy projects gradually through monthly payments, making it more accessible for homeowners to invest in energy efficiency.
- Popular Choice: Energy Loan Network is recognized as a popular solar financing company with a good reputation and reliability in the industry.
- Collaborative Approach: Energy Loan Network works closely with solar installers and homeowners to facilitate financing, ensuring a smooth and painless experience for all participants.
Top 6 Solar Financing Companies (EUROPE)
Energy Loan Network
Sunhero offers several financing options, including solar loans, leases, and power purchase agreements (PPAs).
Their solar leases and PPAs allow customers to pay a fixed rate for the solar power generated without owning the equipment.
Sunhero partners with major solar installers and banks to make the financing process painless.
They aim to make solar energy adoption more accessible by providing flexible financing terms tailored to each customer’s needs and budget.
- Flexible Financing Methods: Cloover provides a user-friendly platform that uses embedded finance products for renewable energy vendors.
- Savings from Day One: By switching to solar energy, savings generated by your panels can help pay for the system from day one.
- Subsidy Assistance: Sunhero assists its customer in identifying the government and regulatory subsidies that apply to their solar installations.
- Certified Installers: Ensures high safety and quality standards by using accredited installers.
Cloover
Cloover is a Norwegian company that provides flexible financing solutions that allow customers to rent or ‘subscribe’ renewable technologies.
Cloover’s unique platform enables renewable technology vendors to offer their services as subscriptions while managing their own working capital.
This platform helps individuals and businesses transition to renewable energy and heating in a capital-efficient and risk-free way.
- E-commerce Platform: Cloover provides a user-friendly platform that uses embedded finance products for renewable energy vendors.
- Resilient Decentralised Energy: Hosts a connected network of independent power providers, driving the decentralization of energy production and fostering sustainable, resilient communities.
- Digital Marketing Tools: Cloover provides digital marketing tools, including social media integration, email marketing, and SEO optimization, to help users promote their online solar offerings.
- Payment Gateway: Cloover offers a secure payment gateway that allows for various payment methods, making it easy for customers to make transactions.
- Inventory Management: Cloover’s inventory management system helps vendors manage their stock levels, track orders, and efficiently fulfill customer deliveries.
Otovo
Otovo is a Norwegian company that offers an online platform where homeowners can design, price, and purchase solar panels. When customers input their address, the system prices the panels in real time and finds an installer.
Customers can then purchase the solar panels online by buying them outright, leasing them, or applying for a loan through Otovo.
The company acts as a credit broker for solar loans, connecting customers and lenders.
This platform helps individuals and businesses transition to renewable energy and heating in a capital-efficient and risk-free way.
- Subscription Model: Offers a monthly subscription with no upfront costs.
- Loan Duration: You can choose a loan duration from 1 to 5 years.
- Warranty: Customers can purchase an extended 20-year warranty that covers parts and labor.
- No Deposit Required: There’s no need for an upfront deposit.
- Early Repayment: You can fully repay the solar loan at any time without penalty, and once payments are cleared, the customer will own the system.
Enpal
Enpal is a German-based renewable energy start-up that is helping address the climate crisis by making solar solutions and energy storage affordable for consumers.
Enpal’s business model is designed to democratize solar energy by renting out the systems to homeowners and caring for service and maintenance (solar-as-a-service).
Innovative Product Offering: Enpal’s integrated financing solution represents a unique and differentiated product.
Long-Term Commitment to Sustainability: Barclays Europe, as part of its commitment to facilitating $1 trillion of sustainable and transition finance by 2030, supports Enpal’s innovative approach.
Quality Assurance and Maintenance: Enpal ensures its solar systems have top-tier components. It uses lifetime remote monitoring and professional maintenance to ensure optimal efficiency.
No Upfront Investment: Offers a product solution that allows customers to lease solar panels, storage, and charging technology for no upfront cost.
Maintenance and Remote Monitoring: Enpal takes care of all the maintenance. And after 20 years of operation, customers can buy their installation for one symbolic euro.
A total of €2.2B in funding has been raised by them over 14 rounds with the support of 34 investors. Their most recent funding came from a Debt Financing round on Jun 9, 2023.
Enviria
Enviria offers solar solutions, especially for companies. This start-up from Frankfurt, Germany, seeks to cover the entire process from financing to design, installation, and operation of solar systems.
Depending on the solar solution, Enviria provides various financing options.
A company may purchase and operate its own PV system, and Enviria will recommend specialized banks to facilitate this upon request.
However, if a company would rather avoid the up-front cost of purchase, maintenance, repair, and insurance, then leasing a PV system or renting out its roof is also available.
- Cheap Green Power: Enjoy cost-effective solar energy that saves money.
- Better ESG Rating: Going solar positively impacts your Environmental, Social, and Governance (ESG) rating.
- Ease of Use: Companies can conveniently charge employee vehicles or vehicle fleets during extended downtimes using solar energy.
- Energy Independence: Empower businesses to reduce reliance on traditional utilities.
- Simplify Bureaucracy: Eviria experts will keep track of certifications, approvals, warranties, and insurance for their business clients, cutting down on red tape.
Neste
Neste employs a process called hydrotreating to produce sustainable aviation fuel. In this process, renewable waste and residue raw materials are first refined to remove impurities and contaminants.
The refined feedstock then undergoes hydroprocessing, where it is treated with hydrogen under high temperature and pressure conditions. This process breaks down the feedstock into smaller hydrocarbon molecules, further refined to meet aviation fuel specifications.
The resulting sustainable aviation fuel is compatible with existing aircraft and infrastructure, offering a low-carbon alternative to conventional jet fuel.
Neste produces a range of renewable fuels, including renewable diesel, renewable jet fuel, and renewable chemicals. Their sustainable aviation fuel, branded as Neste MY Sustainable Aviation Fuel, is derived from renewable waste and residue raw materials.
These raw materials can include used cooking oil, animal fats, and waste oils from food processing industries.
products more accessible to households. With Zolar Easypay, users can choose between a one-time upfront payment or a flexible monthly fee.
This financing solution is part of Zolar’s mission to enable customers to save money by adopting solar energy and making renewable energy easy and accessible for everyone.
Conclusion
Thanks to these top solar financing companies, the transition to solar energy has never been more accessible and affordable.
By using innovative financing solutions, such as streamlined online platforms, solar as a service, and strategic partnerships, they empower homeowners and businesses to embrace solar power without the burden of upfront costs. In this way, these are the clean energy pioneers securing a sustainable and resilient future for our planet.
If you would like to learn more about solar power, please read our article – 20 Facts About Solar Energy Everyone Must Know (2024)
Frequently Asked Questions
What services do solar financing companies provide?
Solar financing companies offer services such as loans, leases, power purchase agreements (PPAs), and other financial products to help homeowners and businesses afford solar panel installations.
How do these financing options make going green more accessible?
These options reduce the upfront costs of solar installations, allowing customers to pay over time and often at rates lower than their current energy bills, making solar adoption more financially feasible.
What should you consider when choosing a solar financing company?
Consider factors such as interest rates, repayment terms, company reputation, customer service, and the specific financing products they offer.
Are these companies available in both the US and the EU?
Yes, the reviewed companies provide financing solutions in both the US and EU markets, although the specific products and terms may vary by region.
Can businesses as well as homeowners benefit from these solar financing options?
Absolutely, these financing solutions are available for both residential and commercial customers, helping a wide range of users transition to solar energy.
References
SolarFeeds – The Falling Cost of Solar Energy: Reasons and Implications
IEA.org – Renewable Energy Market Update – June 2023
Solar Energy Industry Assoc – U.S. Solar Market Insight 2024
Dept of Energy USA – Residential Solar Energy Guide for Finance Professionals