Sign On
  • Online Banking
    Sign On Form is Loading

As technology evolves, more and more homeowners are investing in solar power as a source of residential energy, according to the Solar Energy Industries Association. For homes located in areas that benefit from solar power, it's well worth considering the switch to this renewable energy source. Solar energy users can lower their utility bills, and financing options — including a solar loan — are available to help manage the cost of a new system.

Advantages of Going Solar

Adding solar panels to your house can provide numerous benefits. In addition to increasing your home's energy efficiency, a solar panel system may result in energy savings and may help lower utility costs. You'll also be using a more environmentally-friendly, renewable energy source. Today's solar energy systems can even increase your home's value as more potential buyers search for eco-friendly options. Tax incentives are another advantage; according to the IRS, owners of solar panels are entitled to a federal tax credit equal to a portion of their cost. As an owner, you may also qualify for state and local rebates or incentives.

Financing Options for Solar

With an average price tag of $30,000 according to Energy Informative, the upfront investment in solar panels may seem daunting. However, there are options available for purchasing or financing a solar system. Choosing to own your system rather than lease it through a solar provider will allow you to benefit from tax credits and other incentives. Here are a few options to consider when purchasing a solar system:

  • Solar Loan: This financing option allows you to spread the cost of a new system over time with a loan specifically designed for solar power users.
  • Home Equity: The use of a home equity loan or a home equity line of credit (HELOC) can provide more options for solar panel purchases. Because these options are secured against your home, you may receive better interest rates compared to unsecured financing options.

Before choosing a financing option, spend time comparing the interest rates, terms, and fees of the available alternatives to ensure that you're making the best decision based on your personal finances.

Solar Loans 101

Solar loans are designed to help homeowners finance the purchase of solar panels. Longer terms for solar loans allow borrowers to set up a repayment schedule that fits into their budget. Considering the possible utility savings associated with solar energy, you may even find that your solar loan payment is largely offset by lower energy bills. Interest rates on solar loans may also be lower than other financing options such as credit cards or other unsecured personal loans.

Have you decided to join the growing number of homeowners investing in and benefiting from solar panels? If you'd like to learn more about solar loans, contact Dividend to find qualified installers.

All credit products are subject to credit approval.

This material is presented for informational purposes only and should not be construed as individual tax or financial advice. KeyBank does not provide legal advice.

By selecting any external link on, you will leave the KeyBank website and jump to an unaffiliated third-party website that may offer a different privacy policy and level of security. The third party is responsible for website content and system availability. KeyBank does not offer, endorse, recommend or guarantee any product or service available on that entity's website.

NOTICE: This is not a commitment to lend or extend credit. Conditions and restrictions may apply. Information and offers are subject to change without notice. All loans are subject to credit and collateral approval. Not all loans or products are available in all states.

NMLS# 399797

Call Us

1-800-KEY2YOU® (539-2968)

Clients using a TDD/TTY device:

Clients using a relay service:

Schedule an Appointment

Talk to a Branch Manager in your neighborhood.

Schedule an appointment now

Find a Branch or ATM