Personal Solar Loans:

• Description: Unsecured loans available to individuals for residential solar installations. These loans do not require collateral but may have higher interest rates compared to secured loans.
• Pros: No need for collateral, straightforward application process.
• Cons: Potentially higher interest rates.

Secured Solar Loans:

• Description: Secured loans where the solar system or the property serves as collateral. These loans often have lower interest rates due to the reduced risk for the lender.
• Pros: Lower interest rates compared to unsecured loans.
• Cons: Risk of foreclosure on the property or repossession of the solar system if payments are not made.

Home Equity Loans or HELOCs:

• Description: Loans or lines of credit based on the equity in your home. These can be used to finance a solar installation. They usually offer lower interest rates but are secured by your home.
• Pros: Potentially lower interest rates; flexibility in borrowing.
• Cons: Risk to your home if you default on the loan.

PACE Financing:

• Description: Property Assessed Clean Energy (PACE) financing is a loan program where the loan is repaid through property taxes. It is available for both residential and commercial properties.
• Pros: No upfront costs; repayment through property taxes.
• Cons: May affect property tax assessments; possible impact on property resale.

Solar Lease and Power Purchase Agreements (PPAs):

• Description: While not loans per se, solar leases and PPAs are alternative financing options where the solar provider owns the system and the customer pays for the energy produced or leases the system.
• Pros: No upfront costs; lower monthly payments based on energy savings.
• Cons: No ownership of the system; long-term commitment.