So, you’ve been thinking about reducing your carbon footprint and lowering your electric bill by possibly going solar for months, maybe even years, and now you are ready to purchase a solar system but don’t want that annoying credit hassle. 

We get it. That’s why Sunrun has specific solar financing plans made just for you. Take control over rising electricity prices today, by owning your own solar panel system.1

Own your home solar system & battery storage

You’re tired of being on the tail-end when it comes to managing your energy needs and you want to make the decisions. Just recently, PG&E in Northern California purposefully shut off electricity to nearly 60,000 residents for more than 24 hours due to wildfire concerns.3

We respect that, of course, but guess who wasn’t sitting in the dark for two days? Residents who bought a home solar system and battery storage (currently only available in select states). These households will never be at the mercy of blackouts or power outages again.

So there is something you can do, right now, to make a difference and regain control at the same time. Get your solar energy system installed by some of the best in the industry with Sunrun and say goodbye to rising energy bills, or a house without power, again.

Checking your credit score

Some financing options may require a minimum credit score. Worried if that will affect your chance to get solar panels installed? Let us help you.

First, checking your credit score is an important step when you’re considering making bigger purchases, like a house or car—in this case, a solar system. 

You can access your credit report for free once every 12 months from the three major US credit bureaus, Equifax, Experian, and TransUnion. This can be done through AnnualCreditReport.com, the official site authorized by federal law. Remember, your credit report won’t include your credit score, but it’s a crucial document to understand your financial history.

Your credit score can be checked for free in several ways. Many banks and credit card companies offer free credit scores and credit monitoring for their customers. Websites like Credit Karma and Credit Sesame provide free access to your credit scores from Equifax and TransUnion. Keep in mind that different credit scoring models might show slightly different scores, but they generally provide a good idea of where you stand.

Important: Always be cautious of any sites that require your credit card information before you can see your credit report.

How to get solar financing with low income or bad credit

Financing solar panels with a low income or bad credit might seem challenging, but there are several options and programs designed to help make solar panel financing more feasible.

Solar leasing

Sunrun offers a solar lease that requires little to no little down payment and includes maintenance costs. We also offer low upfront costs, rate hike protection, a 25-year warranty, and more. Our lease is a good option for buying solar panels.

Green banks and specific loan programs

Green banks in various states provide solar financing options that often come with reduced interest rates, longer loan term lengths, and low or no-money-down options. States like California, Colorado, Connecticut, and others have these programs. The Capital Good Fund’s DoubleGreen Loans, for instance, offers a solar loan with low-interest rates and longer-term lengths, specifically designed to assist in installing solar panels.

Community solar programs

If you don’t own a home or can’t install rooftop solar panels, community solar system programs are a viable alternative. These programs allow you to benefit from solar energy generated by solar panels located off-site. In some cases, like for residents in HUD-assisted housing, community solar subscriptions won’t result in a rent increase or utility allowance adjustment.

State-specific incentive programs

Many states offer programs to assist low-income households when it comes to financing solar panels. For example, the Illinois Solar For All Program guarantees no upfront costs and caps ongoing costs for installing solar panels. Similarly, the Massachusetts Solar Renewable Target (SMART) program and the Oregon Solar & Storage Rebate Program offer incentives for low-income households who finance solar panels.

Federal government loans

For those who can’t secure traditional financing, solar financing through federal government loans is an option. These loans come with standard interest rates and terms and can be a solid route for financing your solar power system.

Programs for low-income households

Organizations like Nexamp and Grid Alternatives aim to provide low-cost or free solar power to low-income households. These programs often cover the installation costs and offer additional benefits like job training in the renewable energy sector.

How to improve credit score

Aside from reviewing your credit reports and keeping track of your credit score, as we’ve mentioned above, here are some steps to help boost your credit score so you can get better solar loans and access the best solar financing options:

Pay bills on time

Your payment history is a crucial factor in your credit score, accounting for about 35%. Ensuring you pay all your bills on time is one of the most effective ways to improve your score and therefore get access to a better solar loan. Late payments can significantly harm your credit, so staying on top of your bills is crucial.

Reduce credit card balances

High credit utilization, which is the ratio of your credit card balance to your credit limit, can negatively impact your score. Aim to keep your credit utilization below 30%. Paying down credit card balances not only reduces your credit utilization but also decreases your overall debt, which can positively affect your credit score.

Keep old credit lines open

The age of your credit accounts can influence your score. Older accounts add to the length of your credit history, which is beneficial. Unless there’s a good reason (like a high annual fee), it’s usually a good idea to keep old credit lines open.

Balance your credit mix

Your credit mix refers to the types of credit you use, such as credit cards, student loans, auto loans, and mortgages. Having a mix of different types of credit can positively impact your score.

Handle collections and inaccuracies

If you have any collections or inaccuracies on your report, address them promptly. You can dispute errors with the credit bureaus, and for collections, you may negotiate a payment plan or settlement.

Bonus: To keep even better track of your credit, try using credit monitoring services. These monitor changes in your credit report and even help you prevent identity theft and fraud.

Going solar on your terms

Some Sunrun customers want to get their own solar panels. Buying is a great decision and a considerable investment, and paying cash gets you big benefits over the long term. There are good reasons to own a solar energy system that are hard to ignore, like paying cash and skipping the credit checks, keeping the tax benefits and incentives, building equity in your home, along with so much more.  

We’ve taken the liberty to further highlight some of these advantages below.

1. Get federal tax credits and incentives. The federal tax credit allows you to deduct 30% off the cost when you finance solar panels and install a system. Many states have great incentives for renewable energies. A professional solar company should walk you through all opportunities. Expect to pay a lot less for your solar energy system after you factor in the federal tax credit and other state incentives.4

2. Lower your electric bill. Expect to reduce your current electricity bill by 70% to 100% depending on where you live and local regulations when you get a solar loan and have the system installed. Buying your solar panel system outright can save you as much as $60,000 over 20 years.4 Most systems pay for themselves in five to seven years. And most systems last 30 years or more.5

3. Owning solar panels adds value to your home. Research labs and organizations are gathering the facts and the facts look good. Getting solar panel financing and having your system installed is considered an upgrade, like adding a new bathroom or a guest bedroom. A study by the Lawrence Berkeley National Laboratory in California confirms that homes with solar sold for more than those without.6 And our Department of Energy reports that solar homes are selling at a premium.7  

4. System warranty available. When you get a solar loan or any other residential solar financing options with Sunrun, we back each purchase with our high-quality workmanship and manufacturer warranties. With systems designed to last 25–30 years, you’re looking at some serious long-term savings.

Frequently asked questions

What credit score is needed for a solar loan?

Generally, a credit score above 550 is required to secure solar loans, but approval and terms may vary. Give us a call so we can provide you with the best options that fit your needs.

Freedom and peace of mind when you own your solar panels

It’s a smart decision to purchase your solar panels outright.  When you finance solar panels with us, you can lock in low energy rates and create your own long-term financial plan. And the icing on the cake? You’re reducing your carbon footprint. Call us today, or get a complimentary solar quote and solar panel loans specific to your home energy needs.