THE SHORT ANSWER
Ask for the same system’s cash price and compare it with the amount financed. The CFPB reports that some solar-specific loans embed markups or fees in the principal without clearly identifying the difference. [1]
Freeze one equipment scope
Write down module count, inverter, storage, roof work, electrical upgrades and permit scope. Request a cash option and financing option for that identical package. A price comparison is meaningless when the financed version quietly adds equipment or the cash version omits installation work.
Calculate the dollar difference
Subtract the cash price from the amount financed, then ask the lender and installer to identify every component of the difference. The CFPB describes fees that may be called program, lending, platform, origination-discount or dealer fees. [1] Use the contracts, not a verbal percentage.
Read credit cost disclosures separately
Record the interest rate, APR, term, payment schedule and total of payments exactly as disclosed. Do not assume a low rate means the lowest total cost. The loan principal and cost of credit answer different questions and should both be visible in the comparison.
Exclude uncertain benefits from principal
A tax projection or expected utility reduction is not money already paid against the loan. The CFPB warns that marketing can use an assumed credit to present a smaller “net cost.” [1] Make the decision with the actual obligation visible and seek current tax advice independently.
Save a comparison that can survive closing
Keep the dated cash proposal, loan agreement and installation agreement together. If the final system changes, require refreshed numbers. A buyer or refinancing lender may later need to understand the remaining obligation, so record the lender’s transfer, payoff and collateral terms now.
Before your next conversation
- Compare an identical cash and financed scope.
- Explain every dollar added to principal.
- Record APR, term and total payments.
- Keep tax assumptions outside the loan balance.
Primary sources
- Consumer Financial Protection Bureau: Issue Spotlight on Solar Financing
Primary source checked September 10, 2026. Confirm current legal, lender, permit, product and property-specific requirements before acting.
Planning examples and questions are Origin’s editorial guidance, not a property-specific diagnosis, engineering design, tax determination or promise of savings. Manufacturer and utility references do not imply an affiliation with Origin.
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