Financing
Enter your system price, loan terms, and any origination or processing fee. See the true total cost once that fee's interest is factored in.
How it works
Step 1
Ask specifically about an origination, processing, or dealer fee, and whether it's financed into the loan or paid separately at closing. The contractor financing vs bank loan comparison covers a related scenario if your installer is arranging the financing.
Step 2
Most fees are quoted this way. The dealer fee impact calculator covers a very similar fee type in more depth if that's the specific fee you're evaluating.
Step 3
Seeing the true cost impact, including the fee's own interest over the loan term, gives a clearer picture than the fee's face value alone.
When an origination or processing fee is financed into the loan rather than paid upfront, it accrues interest right alongside the rest of the loan balance for the entire term. A 3% fee on a $26,000 loan is $780 upfront, but financed at 6.99% APR over 20 years, it actually adds about $1,450 to the total cost once that interest is included, nearly double the fee's stated amount. The total interest paid calculator shows this same compounding effect applied to the loan as a whole. The CFPB's origination fee explanation covers this specific fee type in more depth.
Origination and processing fees are the most common, sometimes labeled a dealer fee when the financing is arranged through your installer rather than an independent lender. Documentation or administrative fees show up occasionally as well. Not every lender charges these, so it's worth asking directly rather than assuming one applies. The dealer fee impact calculator covers that specific fee type in more depth. The CFPB's issue spotlight on solar financing covers general pricing considerations worth reviewing too.
A loan with a lower advertised rate but a fee attached isn't automatically worse, or better, than a fee-free loan with a slightly higher rate. The only reliable way to know which actually costs less is calculating the total cost for each option specifically, since the fee's compounding interest can offset or even exceed a modest rate advantage. The total cost of ownership calculator can help you see this figure alongside your full ownership costs.
If a lender allows paying the origination fee out of pocket at closing instead of rolling it into the loan, doing so avoids paying interest on the fee itself, which can meaningfully lower total cost if you have the cash available. Ask whether this option exists before assuming the fee must be financed. The federal solar tax credit calculator is worth checking too if a carried-forward credit factors into your decision.
Have your system price and preferred loan term ready, and ask directly whether any origination, dealer, or processing fee applies, what percentage it is, and whether it's financed or payable upfront. Getting a complete picture before signing avoids surprises about the loan's real cost. The loan payment calculator can confirm the base payment once you have those numbers.
Questions
More than its face value, since the fee is typically financed into the loan and accrues interest over the full term. A 3% origination fee on a $26,000 loan is $780 upfront, but financed at 6.99% APR over 20 years, it adds about $1,450 to the total cost after accounting for interest on that fee amount.
Common fees include an origination or processing fee, sometimes labeled as a dealer fee when arranged through an installer, and occasionally a documentation or administrative fee. Not all lenders charge these, so ask specifically whether any fee applies before signing.
Not necessarily, it depends on the specific numbers for each option. Calculating the total cost for both, fee included, is the only reliable way to know which is actually cheaper rather than assuming based on the advertised rate alone.
Some lenders allow paying an origination fee out of pocket at closing rather than rolling it into the loan, which avoids paying interest on the fee itself. Ask if this option is available, since it can reduce total cost if you have the cash available.
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