Path-Q Solar

What questions should I ask before accepting a solar financing offer?

Answer

Ask for the complete cost and obligations in writing, not just the advertised payment or interest rate. Confirm the amount financed, fees, payment schedule, rate type, prepayment terms, collateral, late-payment consequences, and what happens if the system, home, or loan is transferred.

Key points

  • Request the annual percentage rate or equivalent total borrowing cost, financed amount, origination or dealer fees, and total payments.
  • Ask whether payments can change, when they begin, and whether there is a separate balloon, final, or adjusted payment.
  • Confirm prepayment rules, refinancing effects, liens or security interests, and any required insurance.
  • Ask how the financing interacts with installation delays, cancellation rights, warranties, tax benefits, rebates, and roof work.
  • For a lease or power-purchase arrangement, ask about escalators, production assumptions, buyout terms, transfer requirements, and end-of-term obligations.

What it depends on

  • The exact loan, lease, or power-purchase contract
  • Current lender and provider terms
  • Property ownership and intended holding period
  • Applicable consumer-protection, tax, and property-transfer rules

Risks and trade-offs

  • A low monthly payment can conceal a higher total cost, fees, a longer term, or an uneven payment schedule.
  • A lien or transfer requirement can complicate refinancing or selling the property.
  • Assuming a tax credit or rebate will cover a payment can create a cash shortfall if eligibility or timing differs.

Information you may need

  • The full financing agreement and required disclosures
  • Cash price, financed price, total payment schedule, and all fees
  • Collateral, prepayment, transfer, default, and cancellation terms
  • Current confirmation of any incentives or tax treatment being relied upon

Your next step

What to do next

Have the lender or provider explain every payment and obligation in the written contract, then compare the total cost with a cash purchase and at least one alternative offer.

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Some details may depend on your location, installer, utility, incentives, regulations, or specific property.

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