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Solar loan help: dealer fees, payment jumps and your rights
How solar loans work, what federal regulators found, and the protections that can apply when the loan doesn’t match the pitch.
Last verified October 9, 2026
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The short answer: Most solar loans come from a finance company, not the installer. According to the CFPB’s 2024 Issue Spotlight, many carry hidden dealer fees, typically 10% to 30% of the cash price, and re-amortize to a higher payment around month 19 unless about 30% of the principal is prepaid. If your loan contains the FTC Holder Rule notice, claims against the seller may be raised against whoever holds the loan.
Key takeaways
- Your lender is usually not your installer.
- Dealer fees can hide in the principal, not the APR.
- Many loans jump around month 19.
- The Holder Rule can link the loan to the seller's promises.
- Keep paying and get a review before refinancing.
On this page
How solar loans work
With a solar loan, you own the panels and owe a lender, usually a specialty solar lender. Many loans were built around a lump-sum payment, often framed as the 30% federal tax credit. The federal residential credit ended for systems installed after December 31, 2025, so that assumption may never have been realistic.
Common solar loan problems
- Dealer fees built into the amount financed.
- Payment jumps when a prepayment didn't happen.
- Savings that never covered the payment.
- A UCC-1 filing that surfaces at sale or refinance.
- An installer that closed while the lender keeps billing.
Federal protections that can apply
The Truth in Lending Act requires accurate APR, finance charge and payment disclosures, and some loans secured by your home carry a rescission right under 15 U.S.C. 1635. The FTC Holder Rule, 16 CFR Part 433, can preserve claims against the seller against the loan holder. See our guides to dealer fees and the Holder Rule.
Did your payment jump?
A free intake compares your loan terms with what you were told.
What to check in your loan paperwork
- Cash price versus amount financed.
- APR, finance charge and total of payments.
- When and how much the payment changes.
- Whether the Holder Rule notice appears.
- Whether a UCC-1 filing was recorded on your home.
Common questions
Solar loan FAQs
Why did my solar loan payment go up?
Many loans re-amortize around month 19 unless about 30% of the principal is prepaid.
Do I still owe the loan if my installer closed?
Usually yes, but the Holder Rule may preserve claims against the seller.
What is a dealer fee?
A markup built into the loan principal, which the CFPB found typically ran 10% to 30% of the cash price.
Should I refinance my solar loan?
Get a review first; refinancing can replace the agreement you might challenge.
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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.