Quick answer: If your credit score sits in the “fair” range (roughly 580–669 on the FICO scale), you can still get solar panels financed. Your best bets are specialized solar loans from lenders who accept fair credit, credit union personal loans, a secured loan like a HELOC, PACE financing (only in select states), or an in-house plan through your installer. Expect higher interest rates than someone with excellent credit, but you are not locked out.
I want to talk to you like a friend today, not like a salesman. Because that’s how I learned all this. The hard way.
My Honest Take on This Topic
A few years back, a neighbor of mine wanted solar panels on his roof. His credit score was around 640. Not bad. Not great. He called three solar companies. Two of them told him he “might not qualify” for the best deals. One company flat out tried to push him into a lease instead of a loan, just so they could close the sale fast.
He felt stuck. He almost gave up on solar completely.
That stuck with me. Because fair credit is not bad credit. It is just… average. Most adults in the U.S. fall somewhere in this zone at some point in their life. A late payment from five years ago. A medical bill that went to collections. A thin credit file because you paid cash for everything. None of that makes you a bad borrower. It just makes you a normal one.
So here is what I want this article to do: show you the real options, not just the ones a pushy salesperson wants you to hear about.
What Counts as “Fair Credit,” Exactly?
Most lenders use the FICO scale like this:
| Credit Range | FICO Score |
| Poor | Below 580 |
| Fair | 580–669 |
| Good | 670–739 |
| Very Good | 740–799 |
| Exceptional | 800–850 |
Some solar-specific lenders define fair credit a little differently, often putting fair credit in the 620 to 679 range. So if a lender says you have “fair credit” at 660, and another calls that “good,” that is not you misunderstanding anything. Lenders just don’t all draw the line in the same place.
Why Your Score Matters (But Doesn’t Control Everything)
Here’s the honest truth nobody likes to say out loud: your credit score mostly affects your interest rate, not whether you can get solar at all.
Borrowers with excellent credit, meaning scores above 750, often get rates in the single digits, while people with fair credit usually pay somewhere between 15 and 25 percent. That is a real difference. On a $25,000 system, that gap can mean thousands of dollars over the life of the loan. But it does not mean the door is closed.
One more thing worth knowing before you shop: the federal 30% solar tax credit ended for installations after December 31, 2025. So if you are financing solar in 2026, you are working with state and local incentives only, not that federal credit your neighbor might have used a year or two ago. That changes the math a little, but it does not change your financing options below.
The Real Financing Options for Fair Credit Homeowners
Let me walk you through each one like I’m explaining it over coffee.
1. Specialized Solar Loans
These are personal loans built just for solar. Companies like LightStream, SoFi, Best Egg, and Upgrade all offer them. Best Egg specifically advertises rates from about 7% to 36% for fair credit borrowers, and Upgrade accepts fair credit with co-signer options available.
My honest opinion: these are convenient, but shop at least three of them before you sign anything. The rate spread between lenders for the same credit score can be huge.
2. Credit Union Personal Loans
If you belong to a credit union, or can join one (many let you join through a small donation to an affiliated nonprofit), check there first. Credit unions typically offer rates 1 to 3 percentage points lower than online lenders or traditional banks because of their member-focused, non-profit structure.
This is the option I usually tell people to try first. It’s boring advice. But boring advice saves money.
3. Home Equity Loan or HELOC (If You Own Equity)
If you’ve had your home a while and have equity built up, a Home Equity Loan or Home Equity Line of Credit (HELOC) uses your house as collateral. Because the loan is secured, lenders care less about your credit score and more about your home’s value.
The catch: your house is on the line if you fall behind on payments. I think this option is smart for someone who is financially stable but just has a so-so credit score, not for someone who is already stretched thin.
4. PACE Financing (Only in Select States)
PACE stands for Property Assessed Clean Energy. This one is interesting because it barely looks at your credit at all. Instead, PACE financing focuses on your property equity rather than your personal credit score, making it accessible to homeowners with scores as low as 500 to 600. Payments get added to your property tax bill.
But here’s where I have to be straight with you: this option is geographically limited. Residential PACE is currently available in only two states, California and Florida, after Missouri ended its program in August 2025. If you don’t live in one of those two states, this option simply isn’t on the table for you right now, no matter your credit score.
Also worth knowing: because PACE debt attaches to your property, not to you personally, it can complicate selling your home later. The new owner inherits the remaining balance.
5. In-House Financing Through Your Installer
A lot of solar companies have direct financing arrangements with lenders, sometimes with more flexible underwriting than a bank would offer on its own. This can be a real option if a bank turned you down. Just read every line of the contract. I have seen homeowners get talked into long terms with high total costs because the monthly payment “looked” affordable.
6. Co-Signer or Joint Loan
Adding a co-signer with stronger credit, maybe a spouse, parent, or sibling, can meaningfully lower your rate. Lenders see this as reduced risk, and a co-signer with excellent credit makes a lender far more likely to offer a lower interest rate.
This isn’t always comfortable to ask for. But it’s one of the most effective tools on this whole list, and it costs nothing to try.
7. Solar Lease or Power Purchase Agreement (PPA)
With a lease or PPA, you don’t own the panels. The solar company does. You just pay a monthly fee, often lower than a loan payment, with little to no credit requirement.
I’ll be honest: I lean cautious here. When you lease, your provider keeps ownership, which means they also keep any tax benefits, and leasing can complicate selling your home or getting out of the contract early without paying cancellation fees. It can work, especially if your credit truly limits your loan options. Just go in with your eyes open.
Quick Comparison Table
| Option | Credit Needed | Ownership? | Best For |
| Specialized solar loan | Fair+ (often 620+) | Yes, you own it | Most fair-credit homeowners |
| Credit union loan | Fair+ | Yes | Lowest rates, if you can join |
| HELOC / Home equity loan | Less score-focused | Yes | Homeowners with built-up equity |
| PACE financing | Minimal, sometimes none | Yes (lien on property) | CA and FL residents only |
| Installer in-house financing | Varies, often flexible | Usually yes | Homeowners turned down elsewhere |
| Co-signed loan | Improved by co-signer | Yes | Anyone with a willing co-signer |
| Lease or PPA | Minimal | No | Lowest credit barrier, no ownership |
Real Scenarios (Made-Up Names, Real Situations)
Scenario one: Maria, credit score 630, owns her home outright.
Maria had no mortgage left and decent equity. She skipped the solar-specific loan offers, which quoted her around 18% APR, and instead went with a home equity loan through her local bank at a much lower rate, because the loan was secured by her paid-off house.
Scenario two: Derek, credit score 615, renting income is tight.
Derek didn’t have home equity and his credit score was lower. He asked his sister, who has excellent credit, to co-sign his solar loan. His rate dropped noticeably compared to the quote he got on his own.
Scenario three: the Thompsons, credit score 645, live in Florida.
The Thompsons looked into a regular solar loan first, but found the PACE program through their county instead. Since PACE looks at home equity rather than personal credit, they got approved with no money down, and the payments now show up on their property tax bill.
These are illustrations, not promises. Your actual numbers will depend on your lender, your state, and your full financial picture.
How to Improve Your Odds and Your Rate
A few things actually move the needle:
- Get three or more quotes. Rates for the same credit score can swing by 10 percentage points or more between lenders.
- Pay down credit card balances before applying. Even a small drop in your credit utilization can bump you into a better tier.
- Offer a bigger down payment. Lenders see this as commitment, and it often lowers your rate.
- Choose a fixed rate over a variable one. Predictable payments protect you from rate hikes later.
- Ask about autopay discounts. Many lenders shave a quarter to half a percentage point off your rate just for enrolling in automatic payments.
Common Mistakes I See Homeowners Make
- Signing with the very first lender the installer recommends, without comparing offers.
- Choosing a lease just because it has the lowest monthly payment, without understanding the long-term ownership trade-off.
- Not asking whether PACE is even available in their state before getting excited about it.
- Forgetting that origination fees can range widely and get deducted from the loan amount before it ever reaches you.
The Home Insurance Mistake Military Families Make
Frequently Asked Questions
Can I get solar panels financed with a 620 credit score?
Yes. A 620 score falls in the fair credit range for most solar lenders, and you can qualify for solar-specific loans, credit union loans, or PACE financing in eligible states, though your rate will be higher than someone with excellent credit.
What is the average solar loan interest rate for fair credit?
Fair credit borrowers commonly see rates between 15% and 25%, compared to single-digit rates available to borrowers with excellent credit above 750.
Is PACE financing available in my state?
As of 2026, residential PACE financing for solar is only active in California and Florida. Missouri ended its program in August 2025. Check with your county or a local PACE provider to confirm current availability.
Should I choose a lease instead of a loan if my credit is fair?
A lease can be easier to qualify for since it relies less on your credit score, but you won’t own the system, and you may face cancellation fees or complications when selling your home. A loan is usually the better long-term value if you can qualify.
Does the federal solar tax credit still apply in 2026?
No. The 30% federal residential solar tax credit expired for systems installed after December 31, 2025. Homeowners financing solar in 2026 should look at state and local incentives instead.
Will applying for multiple solar loan quotes hurt my credit score?
Most lenders let you pre-qualify with a soft credit check, which does not affect your score. Only the final application typically triggers a hard inquiry, so you can safely compare several offers first.
A quick note: I’m not a financial advisor, and rates and program availability change often. Always confirm current numbers and eligibility directly with the lender or your state’s energy office before signing anything.
