Since putting in a renewable energy system can cost tens of thousands of dollars, a direct purchase using cash requires significant disposable income or savings. If you are able to pay cash or a portion of the system in cash and avoid interest payments, you will experience substantial and immediate savings on your new renewable energy system.  If you don't have the upfront cash, don't worry, there are other options including financing & loans, leasing & power purchase agreements, and government tax programs (PACE) - which are described in more detail below.

Personal loans are typically just private loans from either banks or other private entities. Personal loans are generally tougher to obtain and require a minimum of verification including residence, income, and employment and they also come with a higher interest rate than most other loans, including home equity loans. Like a home equity loan, you may be asked to put some form of collateral against a personal loan.

We recommend you stay away from using personal loans to finance renewable energy systems unless you really know what you are doing and can find the right deal to fit your financial situation. If you are struggling to finance the direct purchase of a renewable energy system, there are solar leasing and power purchase agreement (PPA) options that are probably much better suited for you. Just like leasing a car, you pay a monthly payment and have the option to renew, buy or return the system at the end of your lease term.