Defined term

Solar loan

A solar loan is consumer credit used to purchase residential solar equipment and installation; the borrower owns the purchased system and repays principal and the applicable cost of credit under the agreement.

Also known as residential solar loan, solar-specific loan

economics · Concept code GS-CONCEPT-018 · Last verified August 20, 2026

Evidence through 2024-08-07 · 5 sources have no source-event date

Content modified 2026-09-29

Definition and boundaries

Definition

A solar loan is consumer credit used to purchase residential solar equipment and installation; the borrower owns the purchased system and repays principal and the applicable cost of credit under the agreement.

Review confirmed · Review due August 20, 2027

Applicable jurisdiction: US; CPUC examples are California-specific

Definition claim verification: Verified August 20, 2026

In plain language

A loan finances ownership. Compare the same system's cash and financed offers, then read the actual contract and required disclosures instead of inferring one value from another.

What it is not

It is not one uniform product, and cash price, contractual principal or note amount, Regulation Z principal loan amount, amount financed, APR, finance charge, and total of payments are not interchangeable labels.

Decision context

Why it matters

Solar-specific point-of-sale loans, personal loans, home-equity products, mortgage financing, and PACE assessments have different structures and must not be presented as one product. Compare the same system's cash and financed prices, contractual principal/note amount, Regulation Z principal loan amount, APR, amount financed, payment schedule, total of payments, security interest, and prepayment terms where those disclosures apply.

Review confirmed · Review due October 29, 2026

The previous review deadline was September 19, 2026. The missed interval remains unverified; the current review does not establish historical coverage.

The cited evidence supports this statement within the source’s stated scope. Its jurisdiction and source-event date limit its applicability to a particular project.

Applicable jurisdiction: US; federal disclosure terms apply only where Regulation Z governs, and product and state-law terms vary

Decision-context claim verification: Verified September 29, 2026

Information boundary

This definition is general educational information, not individualized financial or legal advice. Contract terms, disclosures, incentives, and electricity-sale rules require transaction- and jurisdiction-specific review.

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