Solar loan dealer fees: the hidden cost in low-rate solar financing
A fee the lender charges the installer to offer a low interest rate. It is usually built into the system price, so you pay it without seeing it.
A 1.99% solar loan is cheap for the lender only if someone pays the difference. That someone is you: the installer raises the system price to cover a dealer fee charged by the lender.
Lawrence Berkeley National Laboratory found loan-financed systems cost a median $4.50 per watt against $3.00 for cash purchases. The Consumer Financial Protection Bureau has warned homeowners about the practice.
What this means for you: Ask every installer for the cash price and the loan price in writing. The difference is the fee. Compare with a plain home-equity or credit-union loan.