More than 2.5 million U.S. homes use solar energy to power their houses, but many think they cannot go solar panels because of a low credit score (Solar Energy Industries Association (SEIA)). The reality? It doesn’t.

Though many solar financing programs require credit checks, there are also ways to install solar panels even if your credit score isn’t high — or even without doing a credit check at all. The solar industry has adapted and introduced flexible no-credit and low-credit financing, government incentives, and innovative payment structures to make solar available to a broader range of homeowners.

At Advisor Solar, we’ve helped more than 2,000 homeowners across New Jersey, Pennsylvania, and Delaware go solar — many with low or no credit. The solar industry has changed; you now have many no-credit and very low-credit financing options, from Power Purchase Agreements (PPAs) to government-backed incentives.

If you want to lower your electric bill by an “average” of 30-40%, enjoy guaranteed-fixed energy rates for the next 25 years, and go solar for $0 down, get ready. This guide will explain exactly how you can do it, even with bad credit.

Why Does Credit Score Matter for Solar Financing?

The majority of traditional solar financing options—i.e., solar loans, leases, and power purchase agreements (PPAs)—involve a credit check. But why is that?

Lenders and solar companies use credit scores to assess the risk of not being paid. Because installing solar panels can range from $10,000 to $30,000, companies that provide financing want to see that borrowers can pay their monthly bills (Purelight Power). That’s why most solar loans require a minimum credit score of 650 or better.

But having a low credit score doesn’t mean you’re out of options. The solar industry has changed, and new financing options are available that don’t require a high credit score.

Can You Install Solar Panels with a Low Credit Score? YES!

Absolutely! The idea that you need a perfect credit score to go solar is a myth, plain and simple. The truth is that solar is available to more people than ever and can also be obtained by those with little or no credit. At Advisor Solar, we want you to see that solar technology is still attainable, and we understand the struggles accompanying a less-than-perfect credit score.

Here’s how:

• No-Credit-Check Options Exist—Many solar programs do not perform credit checks! PPAs and some solar leases let you get solar without your credit mattering. You can still reduce your electricity bill and maximize your clean energy consumption without submitting a credit check. You can also save on electricity and enjoy the benefits of clean energy without undergoing a credit check.
• Government Incentives Can Help—Federal and state incentives are intended to lower the costs of your solar installation project, making going solar even easier if you have a low credit score. For example, the 30% Federal Solar Tax Credit can significantly reduce your initial costs, and numerous states offer additional rebates and grants to help further reduce the financial cost.
• Alternative Financing Works – Don’t fret if you cannot get traditional loans because there are plenty of ways to finance the solar system. Through Power Purchase Agreements (PPAs), solar leasing options, and Property Assessed Clean Energy (PACE) financing, homeowners can install solar panels and pay for them in various ways with no high credit score needed to qualify.

The best part? With these options, you can save on your electric bill, lock in fixed energy rates, and go solar without worrying about credit checks or steep upfront costs.

• Want to learn more about the many long-term positive aspects you get when you go solar? Learn how putting a residential solar system in your home can save money, grow your home value, and help lead to a sustainable future. Read our blog post on the “Top 7 Benefits of Installing a Residential Solar System“.

5 Best Ways to Install Solar Panels with a Low Credit Score

If your credit score is low, here are the best financing options to consider:

1. Power Purchase Agreements (PPA) – No Credit Check Required
2. Solar Leasing – Flexible Option for Low Credit Scores
3. PACE (Property Assessed Clean Energy) Financing – Based on Home Equity, Not Credit
4. Government Grants & Incentives – Free or Discounted Solar Panels
5. Low-Credit Solar Loan Options – Own Your System with Flexible Financing

1. Power Purchase Agreements (PPA) – No Credit Check Required

A Power Purchase Agreement (PPA) is when a solar company installs and owns the solar panels on your roof. Instead of purchasing the system, you pay only for the electricity  it produces—typically at a lower rate than your utility company charges you.

• No credit check is required. You’ll be approved for a mortgage based on your home, not your credit score.
• $0 upfront cost –You pay nothing for equipment or installation.
• Immediate savings – You save on electricity bills from day one!
• No maintenance costs – The solar provider takes care of repairs and maintenance

Key Consideration: Since you don’t own the panels, you don’t get any tax incentives, such as the 30% Federal Solar Tax Credit.

Best For:

• Homeowners who want immediate savings with no upfront cost
• Those with low or no credit history
• People who don’t want to deal with maintenance

2. Solar Leasing – Flexible Option for Low Credit Scores

A solar lease is like leasing a car—you pay a flat monthly fee to use a solar system. You pay less for electricity without owning the system because the leasing company owns the panels.

• Lower credit requirements – Leasing companies may allow for lower credit scores than traditional loans.
• Fixed monthly payments – No surprise costs or interest rate changes.
• No responsibility for maintenance – The leasing company covers repairs and upkeep.

Key Consideration: Like a PPA, you don’t own the system, so you won’t receive tax credits or other incentives.

Best For:

• Homeowners with low credit scores
• Those who prefer fixed payments
• People who don’t want maintenance hassles

3. PACE (Property Assessed Clean Energy) Financing – Based on Home Equity, Not Credit

The PACE program enables homeowners to finance solar panels through property taxes instead of a conventional mortgage. That means your credit score isn’t an essential factor — approvals depend on the value of your home and your history of paying taxes.

• No primary credit score requirement – Eligibility is based on property equity, not personal credit.
• No upfront payment – The cost is added to your property tax bill.
• Extended repayment terms — Up to 10–25 years to make payments affordable.

Key Consideration: PACE financing is only offered by select states. It’s linked to property taxes, so it must be paid when you sell your home.

Best For:

• Homeowners who own their home outright or have equity
• Those looking for long-term repayment options
• People in states where PACE financing is available

4. Government Grants & Incentives – Free or Discounted Solar Panels

Multiple government programs offer grants, rebates and tax credits to reduce the cost of solar panels.

• Federal Solar Tax Credit (ITC): 30% coverage of installation expenses
• State & Local Rebates: Many states and utility companies offer cash rebates.
• Low-Income Solar Programs: Some states provide grants or subsidized solar systems.

Key Consideration: Eligibility depends on income level and location, so research state-specific programs.

Best For:

• Homeowners who qualify for low-income solar programs
• Those looking for free or reduced-cost solar
• People eligible for state and federal rebates

5. Low-Credit Solar Loan Options – Own Your System with Flexible Financing

If you want solar panels but have a low credit score, some lenders specialize in bad credit solar loans.

• Secured loans available –Some lenders will let you secure home equity loans for lower rates.
• Flexible credit requirements – Some lenders accept credit scores as low as 580.
• Ownership benefits – Since you own the system, you qualify for the 30% Federal Tax Credit.

Key Consideration: Interest rates may be slightly higher than traditional loans, but ownership gives you the most long-term savings.

Best For:

• Homeowners who want to own their system
• Those who qualify for tax incentives
• People with home equity to secure better loan terms

Key Considerations When Choosing a Low-Credit Solar Plan

Before choosing a low-credit solar financing option, ask yourself:

• Long-Term vs. Short-Term Costs—Certain options save money initially, but they would cost more in the long term.
• Ownership vs. Leasing –Are you looking to own the system or just cut electricity costs?
• Hidden Fees & Contracts – Read the fine print. Do early buyouts come with penalties?
• Impact on Home Resale Value—Owned systems can increase your home’s value, but resale for leased systems can be challenging.

Taking these factors closely into account will help you to have the best option for your financial situation.

Contact Advisor Solar for More Information on Low-Credit Solar Financing

Having a poor credit score doesn’t disqualify you from going solar. PPAs, leasing, PACE financing, and government incentives allow homeowners to transition to solar without worrying about credit checks or enormous up-front costs.

Solar energy should be accessible to everyone, regardless of credit score — and Advisor Solar lifts this barrier. We specialize in assisting homeowners with getting solar financing that meets their needs.

Call now to discuss your options!

Get a free solar estimate with no obligation.

Whether you need a PPA, lease, or low-credit solar loan, we can guide you through the process and be there to help every step of the way. Contact us now, and let’s work together to provide you with clean energy in your home, regardless of your credit score!

Wondering what questions to ask in your solar consultation? To ensure you are fully prepared, read our latest blog, Top 5 Questions to Ask During Your Solar Consultation. It’s full of insights to help you make the best choices for your home and finances. Don’t miss it!

Frequently Asked Questions (FAQs)