Path-Q Solar

What should I ask about the total cost of a solar loan over its full term?

Answer

Ask for the amount financed, APR, term, complete amortization schedule, total of payments, every fee, and the balance under early payoff or home sale. Also confirm whether the quoted system price differs between cash and financed purchases and whether any payment or rate can change.

Key points

  • Request both the monthly payment and total scheduled repayment.
  • Identify origination, dealer, administrative, documentation, and financed add-on charges.
  • Check whether interest is fixed, variable, deferred, or subject to a promotional period.
  • Ask how prepayments are applied and whether any penalty or minimum interest applies.
  • Confirm collateral, insurance, and transfer requirements.

What it depends on

  • Loan contract and disclosures
  • Cash and financed system prices
  • APR, term, and amortization
  • Fees and payment-change rules
  • Early payoff and sale provisions

Risks and trade-offs

  • A low monthly payment can conceal a high total cost.
  • Financed fees may make two apparently identical systems have different economics.
  • Early payoff may not eliminate all charges depending on the contract.

Information you may need

  • Full loan disclosure
  • Amortization schedule
  • Cash price and financed price
  • Payoff quote methodology

Your next step

What to do next

Obtain the written total-of-payments figure and compare it with the cash price and at least one alternative financing structure.

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