What would be considered good interest APR% for solar loans of 10 ot 20 years?

solarhzsolarhz Registered Users Posts: 2
What would be considered good APR% for solar loans of 10 ot 20 years?

From the Sunrun Costco program, I got quoted:
3.99% for 10 years
5.99% for 20 years

I'm getting quotes from other solar companies too like Baker Electric ( www.bakerhomeenergy.com ).


  • BB.BB. Super Moderators, Administrators Posts: 30,053 admin
    Solarhz, Welcome to the forum.

    By the way, did you intend to delete this post? If so, let me know.

    Regarding interest rates, that is only part of the issue. Yes, those are good rates (compared to 20%+ on a credit card). However, does the company "buy down" rates by having a higher install cost?

    What is the warranty and any other issues with the contract from the installer? Hidden charges, if the system does not perform well, are you stuck with it, etc.?

    You also have to look at how your utility bills/pays you for solar power. Things are changing from when GT Solar was heavily subsidised by government and utility customers, to a rate plan that does not (i.e., older plans paid you "retail" for excess power you generated, to now they pay you less, have Time of Use charges that are much higher towards 9pm--I.e., dark when your panels do not generate and you use a lot of power when you get home from work).

    Adding interest payments reduces your rate of return. Make sure that this makes sense financially for you system (you have good sun, no shading during day, "solar friendly" rate plans, etc.).

    What happens when a GT inverter fails (central GT inverters last maybe ~10 years +/- (relatively easy to replace on wall). Micro inverters--Somebody has to go on the roof and pull up panels to get to the one of 10 or 20 that failed and needs replacement--"inexpensive inverter" and expensive labor).

    Near San Francisco California: 3.5kWatt Grid Tied Solar power system+small backup genset
  • solarhzsolarhz Registered Users Posts: 2
    I did not intend to delete it. Oops.

    I’m getting other quotes to compare this one against. The price is a little lower by maybe $400 by paying cash versus doing the loan.

    Sunrun is being promoted in Costco stores here in Southern California. Sunrun has a about 20 year warranty on everything they install including the installation. They also include a roof warranty.
  • mcgivormcgivor Solar Expert Posts: 3,274 ✭✭✭✭✭
    edited August 2019 #4
    Be very careful with promotional pressure regardless of whom they may be affiliated with, there are all kinds of schemes which may look attractive but the intention is to lure the consumer into a binding contract, the contract should also include the utility, who gaurentee a purchase price equal to the length of time the vendor warrants their equipment.

    It's so easy for companies to promise the world but when you hold out you hand, they drop an ice cube into it, many artificial front companies exist only to dissappear in bankruptcy if the need be, leaving the debt in the hands of collection angincies.

    Proceed with caution is the best advice I can offer, especially when credit is involved.

    1500W, 6× Schutten 250W Poly panels , Schneider MPPT 60 150 CC, Schneider SW 2524 inverter, 400Ah LFP 24V nominal battery bank 
    Second system 1890W  3 × 300W No name brand poly, 3×330 Sunsolar Poly panels, Morningstar TS 60 PWM controller, no name 2000W inverter 400Ah FLA 24V nominal used for water pumping and day time air conditioning.  
    5Kw Yanmar clone single cylinder air cooled diesel generator for rare emergency charging and welding.
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