What is Solar Energy Financing and How Does it Work?

In recent years, we have witnessed impressive growth in the adoption of solar energy worldwide. Here in the United States, it has been no different.

Solar energy financing has made the adoption of this clean and renewable energy viable, benefiting solar installation businesses and the general population.

Continue reading this article to explore the concept of solar energy financing and discover how it can enable companies like yours to take advantage of the benefits of this technology.

What is solar energy financing, and why is it a smarter option?

Solar energy financing is an investment model that allows companies and individuals to acquire a photovoltaic solar system without having to invest a large amount of money upfront.

In this type of financing, instead of purchasing the system directly, credit options are offered to minimize initial costs and maximize financial returns, making solar energy accessible to a wider audience.

To obtain solar energy financing, individuals must initiate conversations with a financier and go through the credit analysis process.

If approved, the agreed-upon amount will be granted, bringing the installation of the solar system closer to reality.

Regarding the repayment of financing, individuals typically make monthly payments over a specified period with predetermined interest rates, making the repayment more manageable.

Learn more by watching the video:

Types of available solar energy financing

Among the solar energy financing options you can access, let’s highlight the four main ones.

Solar Loans

There are several different lenders who offer solar loans ranging from banks to specialized finance companies. It has become a popular option over the last decade. The loans offer flexibility in terms and conditions and allow ownership of the system.

Many loans do require that a balloon payment equal to the amount of the tax credit be sent to the lender within the first couple of years otherwise, many of the benefits of the loan could cease (the savings could be severely reduced or even eliminated). Thus, if a homeowner has less tax liability than the tax credit amount of the solar system, a loan may not be an ideal option.

Solar leasing

Solar leasing is an attractive alternative for those who want to adopt solar energy without a significant upfront investment.

In this model, individuals pay a monthly fee for the use of the system, while the service provider is responsible for maintenance and operation.

Power Purchase Agreements (PPAs)

Power Purchase Agreements (PPAs) allow individuals to purchase solar energy generated by third parties without the need to own a system themselves.

Individuals pay a fixed price for the consumed energy, usually below conventional tariffs, ensuring savings and cost predictability for electricity.

Government programs

In the United States, there are government programs that offer incentives and subsidies to make solar energy utilization possible.

Among the federal departments providing financial assistance, notable ones include the U.S. Department of Energy (DOE), the U.S. Department of Health and Human Services, the U.S. Department of Housing and Urban Development (HUD), the U.S. Department of the Treasury, the U.S. Department of Agriculture, and the U.S. Department of Transportation (find more details at this link).

Additionally, the Biden administration recently launched a $7 billion solar subsidy competition to finance residential solar programs.

Government programs reduce installation costs and further improve the financial viability of solar projects.

Benefits of solar energy for businesses in the sector: Why invest?

Solar energy offers several benefits to companies involved in the solar installation sector.

In addition to contributing to environmental preservation, adopting solar energy brings economic and strategic advantages to the company and its customers.

Long-term cost savings: With solar energy, individuals can significantly reduce their energy bills and save money in the long run.

Sustainable brand image: Solar energy is seen as an environmentally responsible solution, improving the company’s image and attracting conscious consumers.

Energy independence and stability: Individuals become less dependent on the public grid for electricity supply with solar energy. This ensures greater stability and security in daily operations.

Attractive return on investment: Solar systems have a long lifespan and provide a solid return on investment over time, offering ongoing savings after the initial investment is recovered.

Protection against future energy cost increases: Solar energy protects individuals against electricity price increases since they can produce their own energy from a renewable and free source.

Competitive advantage and market differentiation: Companies that provide solar energy systems stand out in the market by gaining a competitive edge by demonstrating their commitment to sustainability and environmental responsibility.

Contribution to a Sustainable Future: By enabling the use of solar energy, companies play a crucial role in reducing carbon footprints and mitigating climate change, thus contributing to a more sustainable future.

The EOS platform facilitates solar energy financing

EOS Solar Loan is committed to promoting a healthy environment among key players in the solar energy sector, from financiers to distributors, integrators, and their respective clients.

And how is that possible? Through the EOS platform, which brings together professionals and the best solar energy financing options that match clients’ profiles.

On the platform, you have an easier time finding financing because it relies on algorithms that validate the credibility of proposals and connect partners in an agile and straightforward manner.

We invite you to register on the EOS platform and benefit from all the features that will optimize your time and that of your clients. Click here to create your account.


As solar energy continues to gain prominence in the global energy landscape, it is essential for companies like yours to seriously consider investing in this clean and sustainable energy source.

Remember that solar energy financing provides a smart way to take advantage of all the economic, environmental, and strategic benefits that solar energy has to offer.

Therefore, take this opportunity to drive sustainable growth for your business and assist your clients in finding solar energy financing.

What did you think of the content? Share your opinion with us in the comments below, and share this article with your friends who would like to learn about solar energy financing and how it works.

Visit our Eos Academy and check out more articles that we, from EOS Solar Loan, have produced about tips and curiosities about photovoltaic energy, solar project financing, and other related topics.

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As a Credit Market place and a Cleantech company, we are striving to make homeowners lives better by making their sustainable choices easier and more affordable. We partner with contractors, platforms, product distributors and manufacturers to unlock more financial options and savings in the renewable and home improvement spaces.

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