Solar loan dealer fee calculator

That 1.99% solar loan probably isn't cheap. Enter the loan details and the cash price to see the hidden fee and the real interest rate.

Cash price for the same systemAsk the installer what you'd pay in cash.

Amount financedLeave blank if you only know the payment.

Advertised APR

Loan term

Monthly paymentThe payment if you make no lump-sum paydown.

Paydown the loan assumes (if any)Loans written around the old 30% tax credit often assume a paydown by month 18.

Compare with a no-fee loan

Home equity or credit union rateAverage HELOC rate was about 7.3% in October 2026.

Term

Hidden dealer fee

$9,068 (27% of the loan)

You'd borrow $33,068 for a system that costs $24,000 in cash. The difference pays the lender so it can advertise a 1.99% rate.

True APR on the cash price: 4.98%advertised 1.99%
Total of payments: $42,00025 years at $140/mo
No-fee loan instead: $39,655$220/mo on $24,000

A no-fee loan at 7.34% costs $2,345 less in total.

What to do

Ask every installer for the cash price in writing.
Get a quote from your bank or credit union for a home equity loan or HELOC.
If you might sell within 10 years, avoid large dealer fees: you pay the whole fee even if you pay the loan off early.

How dealer fees work

Solar lenders let installers advertise very low rates by charging the installer a fee, often 10% to 30% of the loan, which the installer adds to your price. The Consumer Financial Protection Bureau found fees above 50% in some cases. You pay it whether or not you keep the loan, so it is most expensive if you sell or refinance early.

How to avoid it

Ask every installer for the cash price in writing, then compare a home equity loan, HELOC or credit union loan on that cash price. If the solar loan still wins after you account for how long you'll keep it, fine. Many buyers find it doesn't.

Questions

What is a typical solar dealer fee?

The CFPB reported that dealer fees typically add 10% to 30% to the price of a solar loan, and sometimes more than 50%.

Is a dealer fee always bad?

Not always. If you keep the loan for its full term, a low APR can offset part of the fee. But if you pay it off early, for example when selling, you lose the benefit of the low rate and still paid the full fee.

What is reamortization?

Many solar loans assumed you would pay down roughly 30% (the old tax credit) around month 18. If you don't, the payment resets higher. With no federal credit for 2026 purchases, there is nothing to fund that paydown.