Solar panels are one of the best investments a homeowner can make — but the upfront cost of installing solar panels can give some people pause. The good news is that there are several flexible solar financing options that make going solar accessible for almost any budget. Whether you prefer to pay cash, finance with a loan, or lease, there’s a path that makes sense for your home and financial goals.
The three main types of solar financing are cash purchase, solar loan, and solar lease. Below we’ll break down each option — including costs, ownership, tax credit eligibility, and when to expect savings — so you can make the most informed decision possible.
Cash Purchase
A cash purchase is the most cost-effective way to go solar over the long term. By paying upfront, you eliminate monthly loan payments and own your system outright from day one — meaning every dollar your panels save you goes straight into your pocket.
Think of it this way: you’re essentially pre-paying for 25–30 years of electricity in a single transaction. As utility rates continue to rise, your locked-in solar energy cost stays the same — nothing. Cash purchasers are also fully eligible for the 30% Federal Investment Tax Credit (ITC), which can reduce a $25,000–$35,000 system down to roughly $17,500–$24,500 after the credit is applied.
The main barrier is having enough capital available upfront. If a cash purchase isn’t feasible right now, a solar loan offers nearly the same ownership benefits without the large initial outlay.
Solar Loan
A solar loan is the most popular financing option for homeowners who want to own their system but prefer to spread the cost over time. Solar loans require no money down, and monthly payments are typically lower than what most homeowners currently pay on their electricity bill — meaning you start saving from day one of installation.
Like a cash purchase, financing with a loan means you own the system — which makes you fully eligible for the 30% Federal ITC, NC state incentives, and the increased home value that comes with owning solar. When comparing loan options, pay close attention to the APR (Annual Percentage Rate), which tells you the true annual cost of your loan including interest.
As the system owner, you’re also responsible for maintenance — though 8MSolar’s Lifetime Workmanship Warranty and manufacturer warranties on panels and equipment cover most issues that arise over your system’s life.
Solar Lease
Leasing solar panels is the easiest way to access the benefits of solar energy with no ownership responsibility. A third party installs and maintains the panels, and you pay a fixed monthly rate for the electricity they produce — typically 10–30% less than your current utility rate.
The tradeoffs are significant. Because you don’t own the system, you are not eligible for the 30% Federal ITC or NC state incentives — those go to the third party that owns the panels. Your home also won’t see the same increase in property value as it would with an owned system, since future buyers would need to take over the lease rather than inherit a paid-off asset.
A solar lease works best for homeowners who want reduced electricity costs with zero upfront cost and zero maintenance responsibility, and who aren’t concerned about maximizing their long-term return on investment.
When to Expect Savings on Solar Panel Financing
No matter which financing option you choose, solar is a long-term investment. The average solar payback period in the US is around 8 years — after which your system produces essentially free electricity for the remainder of its 25–30 year lifespan. That means most homeowners enjoy 17–22 years of savings after reaching their break-even point.
With a loan, your payback period will be slightly longer than a cash purchase due to interest, but the monthly savings begin immediately. With a lease, there’s no traditional payback period — you simply pay a reduced rate for electricity for the duration of the lease agreement.
Are There Financing Options Available at 8MSolar?
Yes — and solar-specific loan financing is one of our most popular options. 8MSolar works with trusted lending partners to offer flexible plans designed around how homeowners actually use their tax credits and savings. Our two most common loan structures are:
- “Same as Cash” loan: $0 down, 0% interest, no payments for 18 months. This plan is ideal for homeowners who plan to apply their 30% federal tax credit toward the loan balance — effectively paying off a large chunk of the system cost before interest kicks in.
- Long-term low payment loan: $0 down, 2.99% APR, 25-year term. Monthly payments on this plan are often lower than your current electric bill, making it easy to start saving immediately with no financial strain.
Our solar consultants will walk you through every available option based on your energy goals, timeline, and financial situation — at no cost to you.
Schedule a Consultation
Whether you’re leaning toward cash, a loan, or a lease, 8MSolar will help you find the financing path that maximizes your savings and fits your life. Contact us today for a free consultation on solar financing for your home — and find out exactly how much you could save by going solar.