Understanding your solar loan options
What your payment looks like across common terms
On a $216,000 loan at 7% interest, monthly payments range from about $4,277 over 5 years down to about $2,221 over 12 years. Shorter terms mean higher payments but far less total interest paid over the life of the loan. Seeing all four terms side by side, rather than one at a time, makes the real tradeoff much clearer. Cross-check this against cash flow positive timeline calculator before deciding.
Matching your term to your savings
Match your loan term to how long it takes your electricity savings to cover the payment comfortably. A 7 or 10-year term is common because it roughly lines up with the payback period many systems achieve once the ITC and depreciation are factored in. Run the payback calculator to see your specific number before committing to a term, and the loan term comparison tool in our financing section for a deeper look at how term length shifts the tradeoff. If you want a second opinion on the size itself, the roof space vs output estimator in our System Sizing section works from your roof area and daily load instead of your building type.
What a longer term really costs you
On a $216,000 loan at 7%, total interest ranges from about $40,624 over 5 years to about $103,868 over 12 years. A longer term roughly doubles your total interest cost even though your monthly payment drops by nearly half. If your cash flow can handle it, a shorter term is usually the cheaper choice in the long run. Compare the numbers against the loan vs. cash comparison if you're still deciding whether to finance at all, and the Department of Energy's guide to going solar for the broader ownership and financing tradeoffs at a more general level. Incentives change the budget a lot. The federal tax credit calculator in our Rebates & Incentives section can help you estimate the federal credit and rebates before you commit.
What lenders look for
Most commercial solar lenders look for a business credit score in the mid-600s or higher, at least two years of operating history, and 0% to 20% down. If your lender goes through the SBA, the underlying FICO SBSS scoring threshold the SBA itself uses is lower than most lenders' own personal-credit standard, so a business with limited personal credit history may still qualify through the business-focused score. Stronger credit and a larger down payment typically qualify for a lower interest rate, which is worth pursuing given how much rate differences compound over a multi-year term. Check the ITC calculator to see how much of your loan the tax credit could effectively offset, or the lease vs. loan comparison if you're weighing financing structures rather than terms, and the cash flow positive timeline calculator to see when your payments turn budget-positive against your savings.