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Home / Solar Loan Dealer Fees
What regulators found
Solar loan dealer fees: the hidden cost in your loan
What the CFPB found about solar loan markups, how they can hide in your loan balance, and how to check yours.
Last verified October 9, 2026
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The short answer: In its August 2024 Issue Spotlight, the Consumer Financial Protection Bureau found that solar loans often carry dealer fees, typically 10% to 30% of the cash price and sometimes more, built into the loan principal and not reflected in the stated APR. A loan advertised at a low rate can cost far more than a cash purchase. Read the CFPB Issue Spotlight.
Key takeaways
- Dealer fees typically ran 10% to 30% of the cash price.
- They were built into the principal, not the APR.
- Low advertised rates can hide a higher total cost.
- Many loans also re-amortize around month 19.
- Compare the cash price with the amount financed.
On this page
How a dealer fee works
The lender pays the installer less than the amount you borrow, and the difference is the fee. Because the fee sits inside the principal, the interest rate can look low while the total you repay climbs. The CFPB reported that this can make the loan’s real cost harder for homeowners to compare.
The month-19 payment jump
The CFPB also found that many solar loans are built around a large prepayment, often about 30% of the principal, usually framed as a tax credit. If it isn’t made by around month 19, the loan re-amortizes to a higher payment. With the federal residential credit ended for systems installed after 2025, that prepayment assumption may never have been realistic.
How to check your own loan
- Find the cash price on your contract or proposal.
- Find the amount financed in your loan disclosures.
- Compare the two; a large gap is often a fee.
- Check the payment schedule for an increase around month 18 or 19.
- Write down what you were told about the tax credit.
Was your solar loan sold on a low rate?
A free intake compares your loan terms with what you were told.
Why it matters legally
A finding about the industry isn’t a finding about your loan. But misrepresented financing terms can matter under the Truth in Lending Act and state consumer protection laws, and the Holder Rule may let claims against the seller reach the loan holder. Loan complaints can be filed at the CFPB complaint portal.
Common questions
Dealer fee FAQs
What is a solar loan dealer fee?
A markup paid out of the loan principal that isn’t reflected in the stated APR, according to the CFPB.
How big are solar dealer fees?
The CFPB found they typically ranged from 10% to 30% of the cash price, sometimes more.
Why did my solar loan payment go up?
Many loans re-amortize around month 19 unless about 30% of the principal is prepaid.
Where can I report a solar loan problem?
The Consumer Financial Protection Bureau’s complaint portal.
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Solar Cancellation HQ is not a law firm and does not provide legal advice. This page is general information, and reading it or submitting a form does not create an attorney-client relationship. Not every contract qualifies, and no outcome is guaranteed. We never advise anyone to stop making payments on a solar loan, lease or PPA. Laws and utility rules change, so verify before acting. Last verified October 9, 2026.