Solar Loans | Solar Panel Financing
(2026 Update)
The great news for San Diego homeowners looking to power their home with solar and save money is this: you still have multiple ways to go solar—often with $0 down—even though the federal residential solar tax credit has expired for new installs.
Costs to produce solar electricity are typically far lower than utility rates, so in many cases homeowners can see savings starting as soon as the system turns on—especially when paired with battery storage to reduce expensive peak-hour usage.
Savings of tens of thousands of dollars over 10–20 years is common for many homes.
Disclaimer: Each home is different, and so are your family’s energy needs. Utility rates, solar production, equipment quality, financing terms, and battery usage patterns vary. Savings are never guaranteed.
First Choice for Solar Financing in 2026: The Energy Savings Agreement (ESA)
If you want $0 down and immediate utility-bill relief—but you’d rather keep your cash in the bank—Jamar Power Systems’ Energy Savings Agreement (ESA) is a modern “transitional ownership” path designed for today’s market.
How it works (high level):
- $0 down to get started (for qualified homeowners).
- Designed to help you reduce monthly utility costs right away.
- Uses a two-phase structure that leads to ownership.
The ownership path:
- Years 1–5: You’re under an Energy Services Agreement with monitoring and protection.
- Year 5+: Ownership transfers to you through an Early Buyout Option, so you own the solar + battery system in 5 years.
Technology:
- Built on premium Enphase hardware (microinverters + IQ Battery) for reliability, safety, and performance.
Important notes:
- “Up to ~40%” savings and eligibility depend on the home, utility profile, and program qualification.
Terms and savings vary—read more about our Solar ESA here.
Solar Panel Financing For San Diego Area Homeowners
The best path for most homeowners: ownership (purchase + financing)
For homeowners who want the maximum long-term return, purchasing a solar power system (cash or loan) is still the “gold standard.”
Owning your solar power system can deliver greater long-term savings—and once it’s paid off, the electricity it produces can feel “free” for years or decades.
Quality solar panels and inverters often carry 25-year warranties, which can provide peace of mind.
Ownership can also make real-estate transactions simpler than traditional leases/PPAs, which may require a buyer to qualify for (or buy out) the contract.
A key 2026 change: federal residential tax credits have expired
Important update: The federal Residential Clean Energy Credit (Section 25D) is not available for systems placed in service after December 31, 2025. In plain English: for most homeowners, new installs turned on in 2026 and beyond won’t qualify for that federal tax credit.
That doesn’t mean solar stopped making sense—it just means the financing conversation needs to be based on:
- your utility rate and usage,
- system production,
- battery strategy (especially in California),
- and the actual loan/ESA terms (not a federal tax credit payback).
For local and state incentives (where available), you can still check what applies in your area using DSIRE: https://www.dsireusa.org/
Solar Financing Options In 2026
1) Energy Savings Agreement (ESA) — $0 down, own in 5 years
This is Jamar’s modern alternative for homeowners who want immediate savings and a clear path to ownership—without the big upfront commitment. Save 40 percent and OWN your system in 5 years. Learn more about our ESA for San Diego homeowners.
2) Cash
If you have the funds, the ROI for solar + battery can still be strong.
Payback periods often land in the mid-range (commonly 4–7 years for many homes), but this varies widely based on utility rates, roof conditions, shading, battery use, and system size.
3) Zero-money-down solar loans
Most solar loans still offer no down payment, so you can start with a monthly payment structure rather than a large upfront cost.
The main difference now is simple: loan designs should no longer assume a tax-credit “balloon payment” next year, because the federal residential credit is no longer available for new installs (since 12/31/2025).
4 ) Home equity loans / HELOCs
A home equity loan (or HELOC) uses your home’s equity as collateral. These often offer competitive rates through banks and credit unions, but they’re secured loans—so only use them if you’re confident in repayment.
Home equity loans are often called home improvement loans, as the idea is to raise the value of the home with renovations.
HELOCs are similar to a home equity loan, but instead of receiving a lump sum, you get an approved credit line you can draw from during a set period. Repayment rules vary by lender.
5) Credit unions / personal loans
A loan from a credit union or bank is often a personal loan. These loans can be used for many purposes, including solar installation costs.
If you have something to offer as collateral and good credit, your credit union interest rates and repayment terms may be attractive.
Unsecured personal loans usually come with fixed rates and equal payments, but they often carry higher interest rates.
6) Solar loans (specialty lenders)
Solar loans are designed specifically for residential solar (and often battery storage). Local installers typically provide options through preferred lenders.
Depending on the structure, the lender may secure the loan with the solar equipment and/or place a lien—so always review terms carefully.
Cities, counties, states, or utilities in some areas may still offer rebates or low-interest loans. Always check what programs exist in your jurisdiction. More info by location: https://www.dsireusa.org/
We promote $0-down solar financing through SunGage Financial, but you can shop and choose any lender that fits your needs.
7) Fannie Mae HomeStyle Energy
Fannie Mae HomeStyle Energy can help fund home energy upgrades (including solar) when purchasing or refinancing a home—up to certain limits based on home value and program guidelines.
You can fund clean-energy upgrades such as solar installations up to a percentage of the home’s value, depending on program rules and qualification.
8) PACE loans
Property Assessed Clean Energy (PACE) loans are repaid through your property taxes and offered through partnerships between lenders and local governments.
PACE loans can be easier to qualify for in some cases because approval is often more equity-based than credit-score-based. Many programs look for:
- sufficient home equity,
- no recent bankruptcies,
- and no recent late payments on mortgage or property taxes.
The tradeoff is that PACE financing can carry higher costs than other options.
PACE availability varies by area, so check what’s offered locally. Ask your County Tax Assessor and solar providers.
Interest on PACE loans is sometimes tax-deductible if you itemize (this is not tax advice—always consult a tax professional).
A major difference: PACE assessments are tied to the property, not the individual. When selling a home, this can affect negotiations because the assessment may transfer with the property depending on local rules and lender requirements.
Quick Q&A recap
Can I finance solar panels in 2026?
Yes. Many homeowners use $0-down options like ESA-style programs, solar loans, home equity products, or (where available) PACE.
How much is a solar loan?
Rates and payments depend on credit, system size, battery storage, and term length. The goal is usually a monthly payment that competes with (or beats) your utility bill over time.
How long is a solar loan?
Terms commonly range from 5 to 25+ years depending on lender.
What credit score is needed?
Many lenders look for mid-600s or higher, but it varies. PACE is typically more equity-based than credit-score-based (where offered).
Want to see what solar would look like for your home?
Check out our FREE San Diego Solar Calculator to estimate:
- system size
- approximate cost
- and a potential monthly payment with financing
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- 2026 Federal Tax Credit Changes For Solar Energy Systems - July 8, 2025
- How Solar Batteries Work - March 4, 2024
- Solar Battery or Generator for Emergency Backup Power? - January 30, 2024
