Predatory Solar Financing: How Dealer Fees Eat Your Savings
The most expensive part of many solar deals isn’t the panels — it’s the financing. Here’s the trick, in plain English.
A shockingly low APR is one of the oldest moves in solar sales. The math is not on your side as often as it looks.
How the dealer fee works
To offer a “0.99%” or “1.99%” loan, the lender charges the installer a large dealer fee — frequently 20-30% of the loan. The installer doesn’t eat that; they raise the system price to cover it. So your “cheap” loan is attached to an inflated system cost. You pay the interest either way — just buried in the price instead of the rate.
How to catch it in 30 seconds
Ask one question: “What’s the cash price versus the financed price?” If financing the same system costs thousands more, that gap is the dealer fee. A fair installer shows both numbers without blinking.
What fair financing looks like
A reasonable APR with a small, disclosed origination fee — and a cash price that’s close to the financed price. We’d rather you understand the trade-off than rush you into a number that looks good on a billboard. See how we approach financing.
Frequently asked.
Is 0.99% APR always a scam?
Not always, but it almost always comes with a dealer fee baked into the price. Compare cash vs. financed price to see the real cost.
What's a fair solar APR?
Whatever pairs with a cash price close to the financed price. The rate matters less than the total you actually pay.
Have a question we haven't covered?
Talk to a local iSolar expert — free, no pressure. Call (651) 565-1140.