Reading your APR impact result
Why APR matters more than most people expect
A single percentage point on a solar loan sounds small, but compounded over a 15 to 25-year term it adds up to thousands of dollars. On a $28,000, 20-year loan, moving from 6.99% to 7.99% adds about $4,107 in total interest, more money than most homeowners save by negotiating the system's cash price down. That makes rate shopping one of the highest-value steps in the whole financing process. The CFPB's explainer on APR vs interest rate explained covers what's actually baked into that number.
What actually determines your APR
Credit score is the biggest factor, followed by the lender type, loan term, and whether the loan is secured against your home. The credit score impact on rate estimator shows roughly what range you should expect to see quoted based on your own score. The levelized cost of energy calculator can help you see how your specific rate factors into the overall cost of the electricity your system produces.
Why a longer term makes the same rate point cost more
The dollar impact of one APR point grows with the loan term, since a longer term means more months of interest accruing at that higher rate. The same 1-point jump that costs about $4,100 over 20 years costs meaningfully less over a 10-year term and meaningfully more over a 25-year term. Run your specific term through the loan term comparison tool to see that relationship directly.
Comparing a credit union quote against a national lender
Credit unions often quote lower APRs than national solar lenders or dealer-arranged financing, sometimes by a full point or more, though they may have stricter membership or credit requirements. The credit union vs national lender comparison tool lays out that tradeoff more specifically. Borrowing for the wrong size wastes money either way. The solar panel calculator in our System Sizing section can help you confirm the size before you apply for a loan.
When a slightly higher APR is still the right call
A dealer-arranged loan with a higher APR sometimes comes bundled with a lower system price or a promotional rebate that offsets the extra interest, so it's worth comparing total net cost, not just the APR in isolation. The dealer fee impact calculator accounts for that kind of bundled cost directly. The CFPB's issue spotlight on solar financing covers general pricing tradeoffs worth understanding before comparing offers.