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
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.
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.
Applicable jurisdiction: US; federal disclosure terms apply only where Regulation Z governs, and product and state-law terms vary
Decision-context claim verification: Verified August 20, 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.
Concept relationships
Related concepts
- Payback periodPublished conceptDebt cash flow is not automatically simple owner payback
- Residential solar installed pricePublished conceptCompare financing against the same installed scope and cash price
- Residential solar system leasePublished conceptA lease uses provider ownership and scheduled use payments
- Residential on-site solar power purchase agreementPublished conceptAn on-site PPA charges for generated electricity
- Solar-loan dealer feePublished conceptSome solar-specific loan programs may include a dealer fee
Primary sources
- U.S. Department of Energy: Homeowner's Guide to Solar
Source event date not provided · Ontology accessed August 7, 2026 · Ontology verified August 7, 2026
- Consumer Financial Protection Bureau: Issue Spotlight: Solar Financing
Revision Published 2024-08-07 · Source event as of August 7, 2024 · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026
- California Public Utilities Commission: Solar Consumer Protection Guide
Revision Guide Version 4 (2025) · Source event date not provided · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026
- Consumer Financial Protection Bureau: 12 CFR 1026.22 — Determination of the annual percentage rate
Revision 12 CFR 1026.22; current electronic regulation · Source event date not provided · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026
- Consumer Financial Protection Bureau: 12 CFR 1026.18 — Content of disclosures
Revision 12 CFR 1026.18(b); current electronic regulation and official interpretation · Source event date not provided · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026
- Consumer Financial Protection Bureau: 12 CFR 1026.4 — Finance charge
Revision 12 CFR 1026.4; current electronic regulation and official interpretation · Source event date not provided · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026
- Consumer Financial Protection Bureau: What is the difference between a loan interest rate and the APR?
Revision Reviewed 2024-01-30 · Source event as of January 30, 2024 · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026
- National Laboratory of the Rockies: SAM Payback Period
Source event date not provided · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026
What to do next
- Review the solar-loan checklistNext step
- Compare cash, loan, lease, and PPA inputsNext step