SOLAR FINANCING PROBLEMS
The financing behind your solar system may contain issues that are just as important as the contract itself — and just as relevant to your available options.
Solar financing — whether a loan, lease, or power purchase agreement — is often where the most significant problems arise. Dealer fees, payment escalators, undisclosed terms, and misrepresentations about financing costs can significantly affect what you actually paid for your solar system.
Dealer Fees
Many solar loans include a dealer fee — an amount paid by the lender to the solar company that is added to your loan balance. These fees can range from 20% to 40% of the system cost and are often not clearly disclosed to homeowners. You may have borrowed significantly more than the actual cost of the system.
Inflated System Pricing
Solar systems are sometimes priced significantly above market value — particularly when dealer fees are factored in. Homeowners may have paid two to three times the actual cost of comparable systems without knowing it.
Payment Escalators
Some solar loans and PPAs include annual payment increases — sometimes 2–3% per year — that were not clearly explained during the sale. Over a 20–25 year term, these escalators can dramatically increase your total cost.
Tax Credit Representations
Homeowners are sometimes told that a federal tax credit will reduce their loan balance — and that they should use the credit to make a lump-sum payment. If you didn't qualify for the credit or weren't told what would happen if you didn't apply it, your loan balance may have increased significantly.
Undisclosed Financing Terms
Interest rates, total loan costs, and other material financing terms are sometimes not clearly disclosed during the sales process. Homeowners may not have understood the full cost of their financing when they signed.
Lender Issues
Some solar lenders have faced regulatory scrutiny or legal challenges related to their lending practices. If your lender is involved in ongoing disputes or has been the subject of complaints, that may be relevant to your situation.
COMMON SOLAR LENDERS
Solar financing is provided by a variety of lenders including Mosaic, GoodLeap, Sunlight Financial, Dividend Finance, and others. Each lender has different terms, fee structures, and practices. We review financing from all major solar lenders.
CONCERNED ABOUT YOUR SOLAR FINANCING?
Let us review your loan, lease, or PPA for potential issues.
Results depend on individual circumstances. Submitting an inquiry does not guarantee cancellation or any particular outcome. Solar Relief Group is not a law firm and does not provide legal advice.