Solar loans are the fastest-growing method of financing a solar panel installation your home or business. Across the country, more than half of all new solar installations are done with either a cash purchase or through a solar loan.
Based in sunny California, Energy Loan Network (ELN) is a relatively new name in the solar lending industry. If you’re comparing solar quotes from a few different solar installers, you may have seen a loan option from Energy Loan Network.
How Energy Loan Network financing works
Solar shoppers typically have a few different ways to finance their solar panel installation. People who are less concerned about maximizing their financial savings can sign a solar lease or PPA with a solar company. Homeowners who want to access the higher financial benefits that come from owning the system outright typically choose to buy it, either in cash or with a solar loan. These solar loans can come from a bank or a specialized solar lender.
Energy Loan Network is a specialized lending company that works with credit unions to offer loans for home solar installations and energy efficiency improvements. Their loans are a popular option for solar financing in quotes on the EnergySage Solar Marketplace.
Energy Loan Network solar loans are offered to homeowners primarily through their network of solar installers. When your installer creates a quote for a solar energy system installation, they often include a built-in financing option from a company like ELN (note: when you join the EnergySage Solar Marketplace you can simply indicate a preference for their loan option during registration).
Energy Loan Network solar loan options
Every home solar installation is different, and ELN’s product offerings are customizable to customer needs. Loan amounts, terms, and interest rates will depend on the specifics of each installation.
In addition to offering loans to homeowners for solar panel installations, Energy Loan Network also finances energy efficiency upgrades for your home. This can include replacing your heating and cooling system, upgrading insulation, or new windows and doors, among other projects.
Loan terms & interest rates
According to quote data on the EnergySage Solar Marketplace, Energy Loan Network solar loan terms range from 8 to 20 years. Borrowers can pay off the loan at any time with no prepayment penalties.
Interest rates on Energy Loan Network financing options will vary based on the customer. In 2017, options offered to EnergySage users had interest rates ranging from 2.49 percent to 7.99 percent.
Energy Loan Network financing vs. traditional bank loans
As mentioned above, homeowners have a few different sources of financing for their solar projects. EnergySage solar shoppers who finance their purchase will typically choose either a loan from a traditional bank or a loan from a specialized lender like Energy Loan Network. The type of loan you choose depends on your priorities.
Solar is a relatively new technology, and some traditional banks may be hesitant to provide financing for it. This is less of an issue than it was a few years ago. However, a specialized company like Energy Loan Network will be prepared with answers to any solar lending-related questions you might have.
Another area where Energy Loan Network shines is in its fast approval process. If you want to finance your solar installation with a home equity loan or line of credit, it can take several weeks for the loan to close. Home equity loans also require that you have significant equity in your home as well as a favorable debt-to-income ratio.
By comparison, while Energy Loan Network only offers loans to qualified applicants, approvals can happen on the same day, making your solar financing process much smoother.
If you have a strong relationship with your local bank and they are willing to offer you solar financing through a home equity loan or line of credit, you may want to compare the long-term benefits of that option against Energy Loan Network’s solar loan option.
Where to get an Energy Loan Network solar loan for your home or business
Many of the 450+ local installers who provide solar quotes on the EnergySage Solar Marketplace use Energy Loan Network as their loan provider. If you’re interested in a loan from Energy Loan Network, simply join EnergySage today and indicate Energy Loan Network as your preferred lender when you register your property.